With customers upping their purchase game, new supply and demand patterns are emerging in shoppers’ behaviour. While brick-and-mortar isn’t going anywhere, e-commerce industry in India is stepping on the gas. Bain and Company have predicted its revenues to touch $50 billion in 2022, up from $40 billion in 2021.
Supply Chain Gets Modish
Deep learning—a neural network with three or more layers that try to copy the behaviour of the human brain and “learn” from large chunks of data— will propel the supply chain forward at every step of the product’s journey. Smart factories, equipment and shipping will deliver the goods while improving worker safety, optimising inventories, cutting down maintenance costs and streamlining processes.
“Over the last two years, retailers have grappled with demand forecasting and supplier network resiliency. They have realised the benefits of quicker anomaly detection. End-to-end visibility of the supply chain with the capability to accurately predict demand is being powered by deep learning. It’s all about the right product for the right customer at the right time and place,” says retail futurist Avvanti Gupta.
Experience, Experience, Experience
Customers have been craving experience over just consumption for a while now. Even as click-and-mortar continues to grow, brick-and-mortar will transform into a more immersive, high-touch and sensory-driven experience.
“While the underlying principles of demand and digital inspirations will gain prominence, an experience economy influencing new designs for interactive retail stores will emerge,” forecasts Gupta. NextGen commerce will be influenced by Web 3.0 and metaverse, causing customers to engage with brands differently and redefining brand loyalty. Alongside, Omnichannel which provides a flawless shopping experience in stores, on mobile, and online will drive the conversation further by bringing together AI, robotics and AR/VR.
Matching Frequency
The new arrives the new way. Virtual trials of clothes are commonplace. Now Radio Frequency Identification technology (RFID) and integrated AI are fast-revolutionising purchase patterns. The RFID identifies products chosen for the trial room and swiftly creates a virtual shopping basket to complete the purchase.
Jyoti Da of the label Jyo Das says, “This technology strengthens the buyer experience, showing them precisely what they are wearing, offering multiple options for their looks for a complete ensemble.”
Smart mirrors, virtual try-on, and slipping from one set of clothes to another without exiting the trial room are the future. H&M and Ralph Lauren create a virtual shopping basket of products a customer has brought into a dressing room and completes a purchase. With Insta sales powering the bandwagon, the sky’s the limit.
“Social media has the power to create a global marketplace for a brand and connect them to customers worldwide,” says fashion designer Babita Malkani.
What Goes Around Should Come Around
Recommerce, or circular economy—selling new, old or used goods like electronics and books physically or online—is reshaping buying habits. Manufacturers too are using products that minimise environmental damage, with demonstrable evidence that they are treating people and the planet in a fair manner.
“Some brands are praised for their recommerce efforts like making bags from old clothes or making pencils with plant seeds. Sustainability in retail is no longer a trend; it is here to stay,” says Gupta.