SMAC Platform for Retail Business

Tuesday, August 7, 2018 11:01 PM

SMAC Platform for Retail Business

Overview of Retail in India

• India is ranked first in the Global Retail Development Index 2017, backed by rising middle class and rapidly growing consumer spending
• Department of Industrial Policy and Promotion (DIPP) approved three foreign direct investments (FDI), Mountain Trail Food, Kohler India Corporation, and Merlin
Entertainments India in the single brand retail sector.
• It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global
destination in the retail space.
Second largest population affluent middle class rapid urbanization rising incomes and lifestyle changes solid growth of internet.
India’s retail market is expected to increase by 60 per cent to reach US$ 1.1 trillion by 2020,

Indian retail market is divided into “Organized Retail Market contributes 93 per cent of the total sector and “Unorganized Retail Market contributes the rest 7 per
cent of the sector.
• The Government of India may change the Foreign Direct Investment (FDI) rules in food processing, in a bid to permit e-commerce companies and foreign retailers to
sell Made in India consumer products.
• Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in online retail of goods and services through the automatic route, thereby providing
clarity on the existing businesses of e-commerce companies operating in India.

Let us see how the four dimensions Social, Mobile, Analytics and Cloud contributes in providing better services in the retail industry.

Social Tool:

The social tool of the SMAC platforms enhances knowledge sharing among members of social media platforms, providing them with a platform
for rapid knowledge sharing. This exchange of collaborative information can drive better business marketing results.

Mobile Tool:

Mobile devices like smartphones and tablets have improved the connection of retailers with their target customers. Mobile technology has
rapidly changed the digital marketplace by enabling retailers to market their products and services seamlessly. With more customers preferring
mobile shopping, retailers need to make their business savvy with the development and introduction of mobile applications for their business.

Analytics Tool:

While the social and mobile tools provide an understanding of the consumer behavior and preferences, the analytics tool analyzes the data
collected and draws insights from them. Retailers can improve marketing campaigns, retain customer loyalty and enhance products and
services by studying the insights drawn from the customer preferences. The data collected allows business owners in making sound marketing
decisions and make changes in business processes that fit the requirements of the customers.

Cloud Tool:

With a huge amount of data and overwhelming information, using cloud technology offers solutions for creating an organized IT ecosystem
with improved data collection. Data can be made available on the cloud which can be accessed anywhere and anytime and hence helps
retailers in cutting down costs of server maintenance and other geographical issues.

Examples -

Tesco, the world's third-largest retailer, which recently boosted online sales by 130% through the use of virtual stores at Korean subway stations and bus
stops.

Home Depot, which plans to invest an additional $300 million in SMAC this year, on top of an already impressive omni-channel and mobile presence.

Macy's and Walmart, which have both grown online sales thanks to new-found digital focus.

Using SMAC in the retail sector helps in transforming the business in the following dimensions:
However, using this digital marketing platform helps small and medium retail businesses in improving their business processes and stay ahead
of their competitors. Following aspects of the retail business are highly benefited with the use of SMAC technology.

Improved Business Model:

Every business has its own business model and business strategy designed to meet the customer expectations and stay ahead of their

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Every business has its own business model and business strategy designed to meet the customer expectations and stay ahead of their
competitors. Analyzing the market behavior using SMAC technology and tools lets retailers transform their business models with digital
products and thereby improve business growth and productivity.

Enhanced Customer Experience:

Customer experience and response drives the sales and growth of a retail business. Data analytics reports and social marketing knowledge
help marketers to make changes in their marketing strategies, products, and services and provide streamlined business processes for an
enhanced user experience. SMAC technology enables retailers to serve their customers with a better shopping experience and continuously
make changes according to the changing consumer preferences and trends.

Better Operational Processes:

Mobile technology plays a vital role in building a communication channel for exchanging information in real-time that helps in better decision
making. It helps in facilitating business information and intelligence faster. Using SMAC, small retail businesses can collect valuable data
assets that assist them in optimizing their operational processes.

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