The advent of digital has brought about a significant change in shopping experience, globally. Closer home, online retailers have taken advantage of growing internet penetration and use of smartphones to transform the Indian customer’s journey. Customers today have the option to undertake the entire shopping journey – from finding a product and checking reviews to making the purchase and receiving deliveries to returning products – all from the convenience of their homes.
Online retailers have not only made it convenient for customers to shop, but have also managed to woo them away from offline players to some extent.
While discounts are the primary attraction, online retailers are able to provide a wider selection of products, 24/7 customer support and easy return policies.
Online retailers are also investing in marketing and promotions to build a higher brand recall. They are able to reach a much wider audience without the need to set up complex distribution networks. Digital marketing also makes it easier to know your customers as well as monitor the impact created.
While digital commerce has significantly affected offline retailers, it has also reflected changing customer preferences, something which the offline retailers can learn from. Today, digital is affecting in-store purchase behaviour as well.
According to Deloitte India’s report ‘Navigating the New Digital Divide’, ₹60,000 crore, or about 21 per cent of the in-store organised retail market, is said to be influenced by digital. Web-enabled mobile devices, including smartphones, seem to be the gadget of choice for customers.
Deloitte India’s research also shows that digital influence is high across product categories, with apparel and electronics being the most influenced by digital usage.
Digital influence Shoppers today want to use digital touch points throughout their shopping journey, from browsing/ researching for a product, comparing prices and reviewing products to gaining post-purchase validation. About two-thirds of digitally influenced shoppers seem to browse retailer (including e-commerce)-specific apps or sites and 45 per cent of digitally influenced shoppers seem to be using social media to gain validation from their personal network.
With digital here to stay, brands/ retailers would need to adapt to this new way of marketing and doing business. It is not only about selling online but also about creating customer awareness, increasing product knowledge, facilitating shopping and providing post-purchase support through the use of digital medium.
Brands/ retailers spanning telecom, FMCG, electronics, food and lifestyle companies would need to include digital in their marketing and selling mix.
Brands/retailers would need to undertake a number of steps to start benefiting from the increasing digital influence.
Create a meaningful digital presence: Digital is not just selling online but also connecting with the shopper to create awareness, providing product information and resolving post-purchase issues. Brands/retailers would need to create a meaningful digital presence across shoppers’ buying cycle
Build path towards seamless integration of physical and digital assets: Brands/retailers would need to integrate their physical and digital assets to create a seamless experience for the shopper
Developing a relevant ecosystem: Brands/retailers would need to align both internal and external elements to this new way of life.
This would mean change management across organisation, supply chain partners and other external vendors
Use digital to know the shoppers better: Today, brands/retailers are able to track shopper’s behaviour both inside and outside the store. They can use this knowledge to offer relevant products and promotions to shoppers
Undertake marketing transformation: Shoppers have unprecedented access to information, and they place their trust in sources they believe are most authentic.
As a result, the traditional role of marketing is being disrupted. Brands/retailers should evolve from the traditional approach and focus on elements relevant to digital shoppers
Digital is a relatively new phenomenon and like any new environment it will have its hits and misses.
However, the importance of digital as a medium for marketing, selling and facilitating shoppers’ interaction would only increase in a country such as India, where it is difficult to reach a large number of shoppers through traditional media. Brands/retailers would need to analyse in detail the influence of digital in their categories and create a relevant ecosystem to address this rapidly evolving phenomenon.
Rohit Bhatiani is Director and Shubhra Batra, Manager, at Deloitte in India.