How Indias SME retailers benefit from going digital

Before the pandemic threw a wrench in the works, Indian Retail was already exhibiting healthy signs of growth. Currently, the fourth largest retail market in the world India's retail market stood at a collective valuation of $690 billion and is estimated to touch $2 trillion by 2032.

All this means that retail SMEs, which have long served the Indian populace, have all the reasons to celebrate. With over 30,000 small and medium brands catering to over 80% of the population , there is enough room for the incumbents to jostle and expand within the market.

However, there is a catch. Changing customer expectations and rising competition for e-commerce mean that offline retailers need to up their game. Unlike their internet counterparts, these firms don't have access to infinite cash reserves and need to retain their customers smartly. In that vein, the surest way forward is to tackle the customer experience via digital means.

Omni–channel Engagement Represents a New Beginning

Retail SMEs are quite literally stuck between a rock and a hard place. On the one hand, they contend with the giants of e-commerce such as Flipkart, Snapdeal, etc.; on the other hand, they

https://www.investindia.gov.in/sector/retail–e-commerce

https://www.financialexpress.com/industry/sme/msme–eodb–over–30000–small-medium–brands–in–Retail–catering–to–80–of–indias–population–cait/2494199/

have to deal with the humble kirana store that has an iron grip over the neighborhood that it presides over.

The solution to this is straightforward -, implement a digitization drive that starts with the low–hanging fruits. WhatsApp integration, digital billing infrastructure, online catalog browsing options, etc. Features like these, combined with e- convenience that SMEs have historically offered, are sure to attract and hold on to customer attention for a reasonable long period.

By leveraging the power of multiple engagement channels, retail SMEs can get a whiff of what the future of retail looks like. Rising household incomes and aspirations represent a unique opportunity for SMEs to reinvent their operations from the ground up and be future-ready.

Rising Awareness among Local Markets

Tier 2 and Tier 3 markets are rapidly maturing, thanks to the proliferation of communication technologies in these markets. 77% of Indian households already have access to a television, whereas 80% of households are predicted to have internet connectivity by 2026 . That's roughly 120Cr people who will be possessing smartphones by then.

All this points to a simple truth that is already becoming apparent,; the next wave of retail expansion will be seen in India's Tier 2 cities, and retail SMEs are uniquely positioned to take advantage of this wave. Several international brands have already started making inroads into these markets, and it is high time that SMEs buck this trend to grab a share of the underway retail boom.

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Naturally, this awareness also calls for retailers to overhaul their existing image. Gone are the days when it was possible to get the bare necessities on shelves and watch them deplete by the weekend. Instead, customers now expect to be attended to, coddled, and given plenty of options from which they can pick and choose. Harry Selfridge's oft quoted "The customer is always right." cannot be ignored in offline retail.

Experiential Retail is Here to Stay

Footfalls in shopping malls are expected to reach pre–pandemic levels by 2023 And retailers are already beginning to prepare for this surge by upgrading their environments. This move is partly due to changing customer expectations and the online retail rise.

For retail SMEs, customer engagement and customer experience cannot merely be a function of spatial design and decor. It needs to be a tech-first endeavor that presents itself at multiple touch points in the shopping journey. Indian retail is still maturing, and those that architect a bespoke customer experience via digital means will see massive success compared to those that do not.

Indian retail is at the Cusp of an Epochal Change.

Industry changes usually have the unintended effect of hitting the rest button for all players in the market, both : big and small. SMEs would be remiss not to use this opportunity to leapfrog into what is clearly going to be the future of retail.

https://www.financialexpress.com/money/experiential–retail–the–driving–force–behind–the–growth–of–Indian–Retail–industry/2690065/

Retail's marketing, supply chain, and back–office functions are all waiting to be disrupted, and it has never been easier to do.