The Indian retail industry is one of the fastest growing industries in the world and it has undergone a major transformation over the last decade. According to a recent study by Yes Bank-ASSOCHAM, organised retail, which comprised just seven per cent of the overall retail market in 2011-12, is expected to grow at a CAGR of 24 per cent and attain a 10.2 per cent share of the total retail sector by 2016-17, according to ethicalmanpower.com. This exponential growth in retail development is not only taking place in the metros, but also in Tier- II and Tier-III cities. With evolution from brick-and-mortar stores to online retailing, the retail industry will soon embrace shopping functionalities in the social realm, on Facebook, Instagram and Twitter.

This transformation can be attributed to the millennials (age 18-34). Majority of the shopping today is influenced by millennials. They are driving purchases in categories such as mobile phones, accessories, fashion, food and beverages. These youngsters are the largest group of smartphone users. It should not come as a surprise that with smartphone, today, comes social networking sites.

To cite an example, Facebook recently revealed its intentions to update its pages with shopping section, and has expanded the Buy button to retailers. The company has already tested “buy” buttons in its app that allow users to directly buy products without leaving. It has also rolled out “Shop” sections on small businesses’ pages. Users will soon have a shopping feed in the navigation bar. The feed will be filled with products offered by various retailers. Industry experts say that Facebook stands to offer a much different selection from what’s available on other online portals, creating an enclave where the users can meet, greet and shop all at once.

Globally, retailers such as Nordstorm, Target and HomeDepot have already started participating in the trend. They use the Like2Buy platform wherein a customer who would like to purchase a product can tap the link found on the brand’s Instagram profile. Digital transactions start-up Stripe announced earlier this month that users will now be able to sell stuff directly in Twitter using its new API. Pinterest, meanwhile, has launched Buy buttons to let users make purchases on the site. This omnichannel trend in retail is ubiquitous and seems to be catching on faster than imagined. Integrated marketing and culling the potential of social media is going to be humongous as retailers want to be present wherever their consumers are.

Anuj Sawhney is Managing Director, Swiss Military Worldwide

More Like This

Published on November 12, 2015