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Representative ImageFirst came e-commerce, followed by delivery apps offering same-day or next-day service, then morning doorstep delivery apps—and now, quick commerce has emerged as the new favorite in urban convenience, widely celebrated as a game-changer in how consumers access goods. Yet, viewing this as the final frontier in retail innovation would be a mistake in a nation with one of the world’s largest and most dynamic consumer groups. India’s journey in channel development is far from over. As the market evolves with new technologies and changing consumer demands, it’s clear that quick commerce is just the beginning. New channels will inevitably emerge, tailored to meet the evolving needs of India’s diverse population.The Growth Story of Retail Channels in IndiaIndia’s retail journey has changed remarkably over the past few decades. While traditionally a brick-and-mortar market, the advent of e-commerce revolutionized the way Indians shopped. This success paved the way for Direct-to-Consumer (D2C) brands, which, while promising in theory, did not fully realize its potential due to a lack of infrastructure, consumer trust, and scalability issues.
Following this was the rise of quick commerce, whose success can be attributed to a simple yet profound understanding: no household in India is ever fully stocked, given how we live, entertain, and consume. Consumers have always felt the need for just-in-time delivery; what was missing was an efficient execution mechanism. Major players like Zepto, Blinkit, and Swiggy, have effectively bridged this gap by mastering the art of rapid delivery.
Data-Driven Supply Chains
Quick commerce is not just about a supply chain innovation that enables rapid delivery; it represents a broader trend toward data-driven supply chains. India’s supply chain industry is expected to surpass USD 300 billion, fueled by a growing retail economy valued at over USD 1 trillion. The exponential growth in the number of warehouses—such as BigBasket’s expansion from 30 to 600 warehouses across 30 cities—illustrates how crucial efficient supply chain management has become in this context.
Post-COVID, India’s role in the global economy has grown significantly, particularly with the adoption of the “China Plus One” strategy. This shift has made supply chain technology a strategic necessity, prompting long-term investments to enhance resilience and mitigate risks. Executives are increasingly concerned about disruptions and focus on developing resilience and diversification through digitization and technology adoption.
Beyond Quick Commerce
The convergence of critical technologies such as cloud computing, IoT, automation, and 5G will enhance supply chain operations to enable greater sustainability. Data plays a crucial role in this transformation- the more data we collect at every point in the product life cycle, the more innovation.
For example, a modern dairy farm would be able to generate vast amounts of data regarding the specific farm and farmer, animal health, cattle activity, etc. This data can be used for better traceability, facilitating timely testing for contaminants like antibiotics and fat content. The incredibly complicated dairy supply chain which faces several challenges due to milk’s perishability and the large number of smallholder farms, could benefit greatly from this approach. Retailers too can harness this data to optimize their operations and build consumer trust by transparently communicating the authenticity and quality of their products. Moreover, data and AI can drive personalization in supply chains, moving from broad population-scale segmentation to more individualized approaches.
The Next Game Changers
Future supply chains will go beyond traditional software—driven by deep tech and data-driven insights that enable more precise and reliable financial and operational decisions. This data-driven approach will drive personalization as a game-changer, shifting from broad, population-scale segmentation to more individualized approaches. The future lies in personalizing supply chains down to the individual level.
Imagine customizing skincare products based on an individual’s unique skin type and environmental factors. This level of personalization could significantly enhance the effectiveness of the products, leading to better skin health and satisfaction. Such a tailored approach would make supply chains more agile and responsive to the specific needs of each consumer, driving both efficiency and customer loyalty.
Omnichannel retail is likely to be another game changer for retail channels. This approach promises a seamless customer experience by integrating all other online and in-store channels. It allows consumers to interact with brands across various touchpoints, making it easier to shop whenever and however they want.
Omnichannel strategies are increasingly important as retailers aim to meet customer expectations for flexibility, convenience, and personalization in their shopping experiences. This channel also includes innovations like buy online, pick up in-store (BOPIS), curbside pickup, and enhanced e-commerce platforms designed to merge digital and physical shopping experiences.
With the ongoing disruptions in deep tech, the future holds great possibilities for reaching and engaging consumers. As new technologies and consumer demands shape the market, we can expect the emergence of new channels that will redefine convenience, personalization, and the overall retail experience in India.
E-commerce has become an essential component of global trade, reshaping how businesses interact with customers and manage their operations. The shift towards online retail is driven by the convenience it offers customers, and the expanded market reach it provides businesses. Many brands are embracing e-commerce models, including direct-to-consumer (D2C) strategies, to meet customer needs.
- Published On Sep 10, 2024 at 01:20 PM IST
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