'Digitally savvy Indian consumers to drive consumption in the next 10 years'

Retailers and consumer goods companies could unlock $2.95 trillion in value for the industry and consumers over the next decade by accelerating digital transformation, according to a new report by Accenture Strategy.

This, the study says, will be driven by investments in new, digitally-driven business models that gives consumers greater choice around how they purchase goods and services, and enable companies to deliver profitable, differentiated experiences.

The report, 'Painting the Digital Future of Retail and Consumer Goods Companies', is based on an analysis for the World Economic Forum, which quantified the impact of digital transformation on consumer industries over the next decade.

The study further adds that Indian consumers who already use technology in some form or other, would lead this growth for various retail and FMCG players.

“Globally, as well as in India, technology has disrupted many facets of the customer’s life. As consumers crave for their own unique experiences, companies will have to re-visit their business models and continuously innovate. By effectively leveraging disruptive technologies, companies will be able to deliver the desired consumer experiences,” said Anurag Gupta, Managing Director & Lead – Consumer Goods and Retail, Accenture Strategy, India.

"To be successful in this ever-changing environment, consumer goods companies and retailers will have to build additional capabilities and partnerships to develop a deeper understanding of this fast changing consumer. Leveraging advanced data sciences to mine for deeper insights is no longer an option but a necessity," he added.

According to the study, today, over half (51 per cent) of Indian consumers allow companies to collect their personal data via intelligent devices in return for a better experience or financial reward. Another 65 per cent would subscribe to a service that constantly looks for the best pricing deals on their behalf, and actively recommends which company to switch to, and when.

About 56 per cent of Indian consumers would use sensor-based digital services that pre-emptively address their needs without human intervention. Another 58 per cent would subscribe to brands that analyse their shopping history to select products especially for them, and orders them automatically.

“The retail and consumer goods industries will change more in the next 10 years than they have over the past 40,” said Oliver Wright, managing director, global consumer goods lead, Accenture Strategy.

"As expectations around cost, choice, convenience and experience continue to increase, consumers will challenge the industry to evolve and innovate, which will drive huge growth in digital commerce," he added.

Others factors that would help growth in the consumer economy are- Sharing economy, Personalization economy, Replenishment economy, Services and Societal implication.

“In a rapidly evolving environment where customers' demand for better products and experience is on the rise, organisations would need to be ready to unlearn and continue to innovate. Collaborating with relevant partners to offer customers increased value at a fast pace would be a key mantra to win them over,” Gupta.

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