Data is the most important asset of the retail industry. Data is useless if it does not help companies to make smarter decisions for business growth. As consumer behavior is evolving with time, it depends on how data are helping retail companies to get relevant business insights, improving customer experience leading to enhanced business outcomes. Predictive Analytics is the AI /ML digital tool that works on data to derive valuable insights and predictions, forecasting sales thereby helping retailers to plan ‘What Next’ moves. How Predictive Analytics can boost the retail industry? How is it helping retailers to generate sales and have a competitive edge in the market? We will discuss all these points in this blog today.

1. Product Demand Forecast

As a retailer, you want your business to expand and products to connect with your target audience. If you know what does your target audience demand and their preferences, your products will never be out of stock or understock, right? To keep your business running smoothly, predictive analytics helps to forecast the demand for exact products your target audience wants. The technology helps to ensure that you have enough items stocked to sell and can meet demands adequately and can predict your profitable months as well as sales deficit. It means predictive analytics helps retailers to assess demand and sales performances. Product performance can be gauged by indicators such as sales margins, the number of units sold besides other metrics. It helps to improve consumer engagement and satisfaction.

2. Pricing Forecast

Pricing forecasts is a major functionality of predictive analytics that uses real-time capabilities of machine learning, and data science technology, to bring out adequate answers to questions that as a retailer you’d like to know in advance. Few sample questions that predictive analytics can forecast regarding pricing elements are:

• For maximizing sales what’s the right price point?
• What should be the frequency for running price-based promotional activities?
• What should be the optimal attainable price of a customer?
• How the competitive pricing will impact sales?

Apart from the above factors, weather forecasting, real-time sales data also help to alter as well as induce the most perfect pricing part (best pricing ).

 3. Managing Inventory

As we have mentioned earlier, too, how predictive analytics helps in estimating product demand and what your target audience wants, it also helps towards managing your inventory properly and up to the mark. A poorly maintained inventory leads to a loss in sales. As a retailer, you will never like to hold on to those products that are not yielding sales. Moreover, you will always want to replenish stocks that your consumers want to buy. Predictive analytics helps to predict demand for products that help you to manage your inventory.

4.  Marketing Campaigns

As a retail business, you need to prioritize marketing campaigns from time to time.  Your business needs a powerful marketing plan that helps to boost your business potentials driving the best ROI. An inefficient marketing campaign management leads to a poor ROI because you cannot estimate the right budget and varied inaccurate calculations done on your part.AI-ML digital capabilities of predictive analytics help you to gain actionable marketing insights, and suggest you adopt individual campaigning for a specific target audience and be more budget efficient leading to maximum conversion of leads.

5.  In-Store Optimization

Predictive analytics helps in online monitoring of shopping activities, as well as in-store data analysis. Varied digital tools & technologies, IoT sensors, and surveillance cameras that are installed in retail stores, on product shelves, help to monitor the shopping activities of varied consumers. The technology helps you in the following ways:

• You can identify your shoppers’ favorite routes throughout the retail floor
• You can identify and distinguish popular, most searched products on varied shelves
• You can count the total number  of visitors  in your shopping zone at different times per day
• You can adequately calculate the average visit time of customers
• You can genuinely monitor queues

Predictive analytics helps you to gather these valuable insights. Using these insights, you can configure store layouts, plan the schedules of your staff, can distinguish the ideal opening hours of your retail stores, reduce customers’ waiting time in queues, and increase the high level of security.

6.  Shopping Cart

 If you own an e-commerce retail store, you can leverage the massive capabilities of AI-ML-powered predictive analytics to optimize your online store, product categories as per existing online shopping carts of consumers. For instance, your customers while browsing your online shopping stores may come across products they like so much. They save them, add them to their shopping carts. When they don’t buy them,  predictive analytics tracks them and lets you know why they didn’t buy and how you should respond to this kind of situation in the future.

7. Social Media Marketing

Social media marketing, online advertising are important segments of retail marketing. As a retailer, you’d think social media marketing involves greater expenditure than offline advertising. But using predictive analytics, you can manage these upfront costs and invest in social channels where you gain the maximum outreach and visibility. Predictive analytics can help you maintain a strong social media presence. You don’t have to stress regarding unreasonable expenses because the digital tool helps you to invest smartly on those social channels where you get the maximum ROI and prospect of acquiring new customers.

Conclusion

Predictive Analytics can help to predict the future of your retail business. Whether you are an online retailer sharing an online marketplace with bigwigs or small start-ups in the offline retail space, predictive analytics helps you to extract valuable actionable insights for your business outcomes in the right direction. The aforementioned AI-ML-powered digital capabilities of predictive analytics are just a few significant use cases in the retail industry. There are many more benefits yet to unfold. Stay tuned to this space and we will have further elaboration on this topic with detailed analysis.

Are you a retailer in the e-commerce industry or a physical retail store and changing consumer behavior bothering you? Want to know how predictive analytics can help you solve this challenge and grow your retail business?? Reach us.

If you are a retail entrepreneur, you must be knowing very well the significance of trends in your sector, and how it shapes the business eco-space. New trends come with every new year that hugely impact retail businesses across the globe. In 2020 as well as 2021, the trends saw a massive shift in consumer behavior, their fondness for online shopping, immense growth in e-commerce, social commerce, AR shopping experiences, influencer marketing, etc. The pandemic has only accelerated some trends like a surge in grocery platforms, retail media outlets overall enhancing online shoppers worldwide. Continuing the trend of writing about the trends, let’s discuss top innovative retail industry trends that will dominate in 2022 and beyond as well!

Important Stats

• By 2040, over 95% of total purchases are expected to be done on e-commerce platforms (NASDAQ)
• There exist over 2 B digital shoppers/buyers around the world (Statista)
• In 2023,  22% of the total retail sales globally are expected to be carried online mode  (Statista)
• Almost 51% of online shoppers do purchases using their smartphones (Finances Online)
• By 2025, half of B2B revenue is expected to be generated by e-commerce (Episerver)

Stats Main Source –  Influencer Marketing Hub

1. Online Stores in Offline Spaces

The trend has picked momentum over the past few years. Digital brands sell their products online while delivering tangibility to the whole customer experience. This means, online buyers can choose products online and can go to pick them in the brand’s physical retail store or in-store. Shoppers greatly benefit from this real-time interaction with the product they want to purchase. Several D2C brands, digital natives such as Casper, Glossier started their online retail but later on expanded to physical availability, too. As per sources, the digitally native retail companies/brands might open 850 physical/in-stores in the coming five years.

2. Rising Social Commerce

Social media platforms have become a big rage amongst people of all ages across geographies. Different social channels are offering shoppers to shop online in a seamless manner. No need to click a third-party website for shopping, but as a user, you can directly purchase from social channels via their apps or sites. Shops are present on social media channels like Facebook, Instagram apps, or sites, and while you can browse your accounts you can see your favorite products displayed by varied shopping brands, e-commerce shops.  E-Sellers can create their labels decorated with attractive banners, colors, buttons,  images, that can be accessed from specific social channels. They have a big scope to reach a larger global audience, too. In 2020, just as the trend picked up like how TikTok and Shopify collaborated, how Facebook allowed shops to sell their products, similarly 2022 is going to see again. Social Commerce sales in the US are estimated to rise by 35% with the current year-end.

3. Enhanced Influencer Marketing

Earlier, Influencer marketing meant just eye-catching captions, creative selfies, and product shots that used to be heavily edited. This year onward (2021), we are seeing how brands are collaborating with influencers and influencer content with the raw and real aesthetic appeal are tending now and will last beyond 2022 as well. Audiences love the original appeal of the brands and not an artificial coating and edited stuff. They want the real, authentic voice that brands project for their products. Influencer content that works as edutainment(education+entertainment) for the ultimate user experience, is allowing brands to fetch greater user engagement and ROI. Video happens to be the next big thing when brick-and-mortar retail stores are still to restart massively like the earlier phase. Consumers, shoppers love to see the product digitally and feel the experience. Videos on IGTV, Reels, Live Streaming, etc. are the ways influencer marketing is becoming the retail trend for 2022 also.

4. Value-Added Supply Chain

Supply- Chain forms a significant part of the retail chain. Digital technology and tools like AI-ML, IoT, Robotics are already helping the wing with added value. For example, automated warehouses with varied robots handling goods, doing the routine work there, autonomous robots, and drones for last-mile delivery are yet to become popular but may pick up during 2022 and beyond in full swing. Besides,  retailers can make smart decisions using process automation that will lead to greater value- service. Adopting IoT(Internet-of-Things), RFID devices, help to track, trace product, and this allows retailers to access authentic real-time data. Digital tools like AI-ML Predictive Analytics help to understand KPIs thoroughly. Automating documentation at all the stages of the supply chain helps to lower costs and increase efficiency and productivity. This is going to be the major trend in the coming years.

5. Voice Commerce and Digital Chatbots

Shoppers, users, b2b or b2c customers, all are benefitting from digital chatbots and smart speakers. Amazon Echo, Google Home, and other voice-technology-enabled smart speakers have entered the homes of online shoppers. As of now, 20 percent of owners of smart speakers use voice technology/voice commerce for searching, researching products they buy, shopping activities and tracking deliveries, etc. This trend is expected to grow to 52 percent in the coming 4 years. It is estimated that the global market of smart speakers could reach beyond 35.5 billion USD by 2025. Furthermore, retailers are focusing on meeting customers where they are. This is leading to the increased use of AI-ML-enabled digital chatbots and virtual assistants. The trend is going to stay in 2022, too.

Technology Will be the Key Driver

Trends become the trends when technology intervenes. Ideally speaking, in the era of digital transformation across industries, the retail industry is way ahead in terms of technology adoption and adapting to the changing demands, and ever-changing consumer behavior. While e-commerce is increasing its foothold, the essence of brick-and-mortar retail stores will always charm the audience. It is about amalgamating the two, the omnichannel strategy as well, that will enhance the core of retailing and trends ensuing in the year 2022, and beyond!

The year 2020 will be recorded in history as the most eventful year of the century. The infamous COVID-19  pandemic has upended industries across the globe, and the Indian retail industry is one of them. The entire retail trajectory shows a stark shift in consumer behavior and the way retail business is operating throughout the country. As per BCG & RAI joint report, the Indian retail sales decreased for the first time in 2020 after decades of continuous growth. Brick & Mortar retailing suffered the most while e-commerce saw a big leap. In 2019, India ranked second in the GRDI,  Global Retail Development Index (GRDI). How about Indian retail growth prospects in 2021 and years to come? Let’s discuss in length the pre & post-pandemic status of the retail industry in India.

Consumer Purchase Behavior

In the Pre Covid era, years before 2020, the Indian retail industry saw a steady, smooth pattern in the buying behavior of consumers, their consumption pattern, and socio-demographic fundamentals were accounted for this steady growth. There was a demand for in-store shopping, and physical retail shops, malls, and supermarkets were dominant. In the meantime, e-commerce, b2c channels were also a big hit in the later part of the erstwhile decade.

In the Post Covid era, the aftermath of 2020, and the second wave that is still hovering around, the consumption patterns have started a big shift towards online retail and e-shopping. Indian consumers have become too precautious and preferring buying over online stores to visiting physical retail stores. Although lockdowns have been lifted in maximum places, the night curfew and weekend restrictions still playing hide&seek games influencing the physical retailing and consumers buying behavior.

Digital First Operations

In the pre-covid phase, the retail industry in India saw a mixed approach towards the digital adoption of modern tools and technologies. Retailers were not competing with retailers but with the influx of digital technologies to revamp the retail business model. While big retailers had moments with ‘Experiential Retail’, where adopting digital technologies was the core, small retailers (who fell into the unorganized retailing sector), failed to adapt to this change. Experiential retailing involved ATL, BTL animations, blended physical and digital shopping to deliver convenient accessibility, good customer experience, and solid in-store features. Digital technologies like IoT helped b2b in-store marketing efforts for retail brands. IoT tech helped retail in-store and malls in the lighting system, handling of electric switches as well as garbage disposal units, and the Point of Sales Units (PoS).

In the post–covid phase, the digital-first operations elevating to the next level. As per  Anand Narang, VP- Marketing & Consumers experience, Bata India limited, the entire financial year 2020-21 has proved to be challenging for retail business across India, due to pandemic as well as countrywide lockdowns. However, Sales in Bata reached 15% of the total sales of the previous year thanks to digital channels. Also, they divided consumers into three categories- Digital Natives, Digital Adopters, Digital Novices. Thus, the post-covid retail in India is delivering services as per the very three categories of consumers. For this, they are adopting the Digital – First Approach. The social media front also helping businesses to combat the intangible effects of the pandemic.

Major Drivers

Pre-Covid Indian Retail saw a big surge in online retailing. The major drivers of online retail were:

• Increased penetration of the internet
• Smartphone users increased massively
• Online shoppers increased immensely
• Make In India initiative of Indian Government

The Indian government’s initiative of ‘Make in India’ propelled focus on the local manufacturing that led to creating more jobs, increasing the GDP per capita, which started making people reliable and improve their lifestyle.

Post-Covid Retail in India also seeing the above-mentioned drivers as major a boost to sustain the harsh impact of covid led lockdowns and retail shops shuttered down. However, the three major drivers for the post-covid retail are:

• E-Commerce/Digital Retail Channels
• Mobile App based Shopping
• Digital Wallets

While e-commerce or online retailing is thriving exponentially in India, even customers are enjoying the competitive prices and ever-increasing options for products at the minimum rates. Retailers in India are indeed rejoicing the impact as they need to spend less on real estate and can reach out to maximum customers even in tier-2 and tier-3 cities.

Predictions

• India’s e-commerce retail is expected to rise by 84%  to USD 111B by  2024 (source-IBEF)
• Mobile shopping to increase 21% annually in next 4 years
• Online retail penetration to increase by 10.7% by the year 2024 (it was 4.7% in 2019)

Conclusion

The retail industry in India is expanding after a short-term hiatus. As per a recent joint report prepared by BCG and RAI, the shift in consumer preferences has been categorized into four categories-  Mobile Phones, Staples, Food-Ordering, and Apparel. While some of these shifts are short-term, others will have long-term implications, for the supply-chain side. Mobile shopping, mobile apps, e-retail are going to thrive. The rapid urbanization, entry of foreign players, rising income as well as favorable demographics are going the be the major drivers for boosting the retail industry in India.

Are you prepared to cope up with evolving retail trends and challenges in these tough times? Reach us to know more.

Are you a Wholesaler or planning to start a wholesale business on an e-commerce platform?  You can either build your website dedicated to your wholesale business or, you can choose an e-commerce platform like Shopify, Amazon, Indiamart, and so on. These e-commerce platforms are the marketplaces where retail companies buy and sell products. Creating your unique identity in an existing online marketplace needs to follow certain guidelines. On the other hand, you can build and launch your unique wholesale e-commerce platform. To do that, you need to consult a dedicated web & mobile application development company for the step-to-step development process. In this blog, we will discuss both the options – Popular online marketplaces or e-commerce platforms, and, the guideline for a few basic mandatory features you should adopt for your wholesale b2b e-commerce yet-to-launch website.

Top Features of Platform

1. Synchronizing Data

Your website/e-commerce platform should have the feature that synchronizes data from varied, multiple channels. You know how people are super active on so many channels. This is the virtual world, and people just love to hop on places upon clicks, in seconds. Don’t you agree, too? People, businesses, b2b customers search across channels available on the web and do fundamental research for products/services before buying. So, as a wholesaler on an e-commerce platform, you get opportunities to sell your products on multiple channels. Indeed a valuable addition to your sales. However, you have to smartly organize data residing on all the platforms and ensure data security. The detail of your buyers, payment transactions, delivery status and so many details that concern your wholesale business is available online. Make sure your website is perfectly synchronizing all these data and does the needful. This is a very prominent feature that your website should have.

2. Mobile App

As per Statista report, there are more than 3 billion smartphone users across the globe. This has opened up an attractive avenue for retail businesses and you being a wholesaler, need to capitalize on this. Your website/wholesale e-commerce platform has to be mobile-friendly and compatible with all types of smart devices where b2b customers, or the buyers, are present most of their time,i.e., mobile, tablet, iOS platform, Androids, and so on.

3. Integration with Third Parties

Your wholesale website is not the only platform where your customers/clients come and interact. Your e-commerce platform should have pre-sales as well as post-sales touchpoints, too. For instance, content, advertisements, campaigns, research, are few pre-sales points whereas, upselling,cross-selling, etc. are post-sales points. Thus, your website needs to have this feature of integrating with other platforms, tools to manage all the touchpoints.

4. Customer Support Feature

As a responsible wholesaler, your website should provide your b2b customers with strong support and service 24*7. The customer support service feature makes sure your e-commerce platform is dedicated to the service you provide while caring for your customers is an equal priority. This facilitates an increase in conversion rates.

5. Content Marketing

Content is the king. And how your website presents content to your target audience attributes a lot to your business gains. It means, your wholesale e-commerce platform needs to have a content marketing tool appropriately designed and placed. This feature leads to your brand awareness, the recognition in the market as well as engaging your customers, prospects, into the sales funnels. Competitive videos, images, blogs,infographics,etc. are some content examples that can be duly leveraged for your business gains.

Popular E-Commerce Platforms

1. IndiaMart

Indiamart is a popular e-commerce platform for b2b and b2c businesses. It caters to the Indian market specifically and is the topmost online b2b marketplace in India connecting buyers with wholesalers. You can connect to this platform and start building your wholesale business. Follow the guidelines and get connected to your potential buyers. Plenty of categories and verified buyers is the plus point – 72 M+ products & services, 125M+ buyers,6.5M+ suppliers. This is the popularity of the very e-commerce platform.

2. Alibaba.com

Alibaba group is based in China.  Alibaba.com is a subsidiary of the giant group. This wholesale e-commerce platform hosts varied wholesale businesses and support a very large user base. The process to sign-up here is simple and whichever category you belong to, you will find your place. You can easily set up your wholesale business here and the plus point is its compatibility with multiple language options as well as multiple payment options. The platform charges $100 for service, and also offers logistics support.

3. X Cart

X Cart is a popular e-commerce platform for wholesalers and is considered to be more cost-effective as compared to other platforms. Its usability power is immense as it can let you connect your CRM, ERP, POS without writing codes on your part. X Cart offers multi-language support and omnichannel content management, too.

4. Amazon Business

Amazon is a household name today. Amazon Business is dedicated exclusively to  B2B transactions between retailers and wholesalers. As a wholesaler, you can freely sign-up here and compare your products with your competitors and plan your offers accordingly. You can create multiple users accounts on this platform and can use varied payment methods. You can check its website for further guidance.

5. Shopify Plus

Shopify Plus gives you the dedicated services categorized under Sell, Manage, Integrate, Migrate! When you visit the very e-commerce platform, you will be mesmerized by the way it delivers its message for wholesalers like you. There lies a dedicated ‘wholesale e-commerce’ section and the message reads  “Wholesale without the hassle”. You get a self-service online platform to sell directly to your b2b customers!

Bottomline

E-Commerce is thriving, growing exponentially, and is a big contributing factor for the worldwide transformation in the retail industry. Every day there is a new addition to the platform (buyer or seller). Wholesalers like you are connecting manufacturers, distributors, retailers globally and proving a big boon to the supply chain segment. So, you need to decide what you want now. Want to start selling in a marketplace ready for you, like Amazon Business or Shopify Plus? Or, you want to start your e-commerce platform and stand in the league of giants like Alibaba and India Mart! You decide because it is your wholesale business.

Are you an aspiring wholesaler, or an established player in the market? We have an e-commerce solution to take your business to new heights of success. Contact our experts today to get started.