India Retail Forum (IRF) - press release

National, 24th September, 2019 – Deloitte India in alliance with Mapic India, ‘KNOW your consumer – What you see is what you get’ at India Retail Forum today emphasizing on the evolving consumer mindset dominated by digital intervention and emergence of retail intelligence to move beyond the conventional mass marketing model.

According to the report, with the emergence of a more informed and tech savvy consumer base, retailers are increasingly replacing traditional mass market approach with targeted strategies formed using insights driven from consumer data.

While retail in India has always been a laggard with respect to using advanced analytics to stay ahead of the curve, this is slowly changing. According to the report, in India, especially in the luxury segment a trend called ‘Tribetailing’ is increasingly picking pace. This trend allows retailers to use artificial intelligence, machine learning, and social media analytics to gain information about consumers’ shopping history, behaviour, preferences, and online activities.

Commenting on the launch of the report, Deloitte India spokesperson, said “Consumer trends in India are evolving at a rapid pace with the advent of technology and with that the Indian consumer has evolved from a reactive entity to a proactive seeker of products and personalized experiences. This change needs retail brands to change the language of their engagement as the consumer now takes the driver’s seat unlike brands telling the story to him/her.

The discerning Indian consumer trends are more perceivable in the rural market, and that segment is what companies need to tap more than others through community of micro-influencers and vernacular content.”

On the changing strategies of brands to tap the potential presented by rural markets, the report mentions unique initiatives under play to cater to the demands of a new rural consumer base that makes up for 68% of the country’s population and is more connected than ever because of rising internet penetration. While some brands are using vernacular content and creating a network of rural shops, the others are using smaller packaging as an innovative method to spur rural spending.

Key highlights from the report:

Rising significance of vernacular: Major drivers of vernacular content, apart from the increased internet and smartphone penetration, are digitisation of rural India and a vast majority of Indian population speaking local languages, with only ~15 percent of Indian population speaking English. India currently has nearly 250 million local language internet users and this number is expected to go up to nearly 600 million users by 2023. Buyers will connect better with the brand if the communications are in local language.

Customisation and personalisation of products: With increasing competition among consumer brands in different product categories, brands are finding it increasingly challenging to offer unique value propositioning. As a result, personalisation and bespoke offerings are becoming a norm to attract and retain consumers. This apart, a community of micro-influencers is another way brands are enhancing engagement with their customers.

Digital engagement across consumer buying journey: Retail has been one of the early adopters of artificial intelligence solutions. Today, around the world, companies are using API-based technology to analyse user-generated content to enhance engagements rate. They are also using IoT to help its consumers browse through its products easily and in some cases also making use of  AI to add a touch of personalisation.

About Deloitte: All the facts and figures that talk to our size and diversity and years of experiences, as notable and important as they may be, are secondary to the truest measure of Deloitte: the impact we make in the world.

So, when people ask, “what’s different about Deloitte?” the answer resides in the many specific examples of where we have helped Deloitte member firm clients, our people, and sections of society to achieve remarkable goals, solve complex problems or make meaningful progress. Deeper still, it’s in the beliefs, behaviors and fundamental sense of purpose that underpin all that we do.

Deloitte Globally has grown in scale and diversity—more than 263,900 people in 150 countries, providing multidisciplinary services yet our shared culture remains the same.

Notes to the editor for reference purposes only:

This press release has been issued by Deloitte Touche Tohmatsu Limited

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

Deloitte India herein refers to Deloitte Touche Tohmatsu Limited