The retail industry is one of the major growth engines for the country’s economy with a double-digit contribution to the GDP and a wide variety of employment opportunities. The industry is extremely diverse and has multiple platforms and participants. The role of technology in retail has also drastically evolved with tech-enabled retail models and solutions increasing efficiency across the retail ecosystem. In fact, the retail market is anticipated to reach $1.3 trillion by 2025, and synergy between offline retailers and online players will be the next drivers of growth.
One of the silver linings of the pandemic was that it brought attention to the retail industry’s adaptability and resilience. COVID-19 brought the entire retail ecosystem together, wherein modern retail and online players have been collaborating with local players.
The Evolution of Retail 4.0
With the second-largest consumer base in the world, India’s retail sector has emerged as one of the most constantly evolving and fast digitising industries. The sector has seen a consistent digital transition every 5 years, during the last few decades. Between Retail 1.0 and Retail 3.0, the industry underwent a transformation from a neighbourhood kirana market to a global, multi-channel retail market with cross-border commerce, product diversification, and innovative technological growth. New business models of collaboration that use an omnichannel approach to retail will entail the development of retail 4.0 in the nation.
The retail 4.0 evolution in India will be defined by the convergence of retail channels and the collective evolution of their capacities through tech-enabled collaborations. The home market will grow significantly, more jobs will be created, and exports will increase owing to retail 4.0. The dynamics of supply and demand are anticipated to change, accelerating the economic growth momentum. In addition, it will also create a more inclusive ecosystem with higher participation of MSMEs. Hence, the Government must recognize the retail industry by giving it an industry status and expedite the implementation of the integrated National Retail Policy. The policy with industry recommendations must be implemented now while considering the needs of India’s small retailers. It is extremely pertinent to guarantee equal opportunity for all offline and online retailers and foster an atmosphere that will support the expansion of small businesses and retailers.
Sr. VP, Corporate Affairs
METRO Cash & Carry India.
Technologies reshaping the retail world
Technology is largely responsible for the transformation of the retail industry, which has also allowed for the entry of new players, the formalisation of the value chain, and cost and operational efficiencies. Macroeconomic events like demonetisation in 2016, the beginning of GST reforms, and the global pandemic have, directly or indirectly, accelerated online and offline retail. Investments in cutting-edge retail technology, such as enterprise-grade software, the usage of cloud services, big data analytics, Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP), etc., have ensured greater acceptance for new-age retail and a superior customer experience. In addition, the increased use of a variety of digital and contactless payment options has all been a crucial enablers of the evolving retail ecosystem.
It is fascinating how neighbourhood stores and kirana shops have adapted to the new digital revolution and are now part of a digitally connected retail ecosystem. The new era promises disruptive growth for the industry and the country, as well as an agile, effective, inclusive, and interdependent retail environment.
