With the emergence of more informed and tech-savvy consumer base, retailers are increasingly replacing the traditional mass-market approach with targeted strategies formed using insights driven from consumer data, said a report.
According to a Deloitte India report, a trend called ‘Tribetailing’ is picking pace, especially in the luxury segment in the country. This trend allows retailers to use artificial intelligence (AI), machine learning, and social media analytics to gain information about consumers' shopping history, behaviour, preferences, and online activities.
This information, it said, is helping retailers to group consumers in categories and come up with bespoke solutions, and devise personalised marketing and promotional programmes such as membership and loyalty programmes and discounts to target niche consumer segments.
“Consumer trends in India are evolving at a rapid pace with the advent of technology and with that the Indian consumer has evolved from a reactive entity to a proactive seeker of products and personalised experiences. This change needs retail brands to change the language of their engagement as the consumer now takes the driver’s seat unlike brands telling the story to him/her,” said Anil Talreja, partner, Deloitte India.
Today, firms around the world use application programming interface-based technology to analyse user-generated content to enhance the engagement rate. They also use the internet of things to help their consumers browse through their products easily. In some cases, they also use AI to add a touch of personalisation.
“With increasing competition among consumer brands in product categories, brands are finding it increasingly challenging to offer a unique value proposition. Personalisation and bespoke offerings are becoming a norm to attract and retain consumers. A community of micro-influencers is another way that brands use to enhance engagement with their customers,” said the report, which further estimated that digital ad spend will see the highest growth followed by television and print, expected to grow at a CAGR of 32 per cent.