Thursday, June 16, 2022

“It does not matter how slow you go so long as you do not stop.”


In today’s world, the traditional store-based retailers (SBRs) need to employ analytics to understand their customers and most importantly themselves.
Analytics for retailers
A few of the capabilities that analytics offers for retailers are:
• Better demand management leading to higher fill rates
• Better ROI by carrying the right assortment and balancing the inventory with demand
• Profit maximization by optimizing pricing and promotion strategies
• Localizing the global retailer’s proposition to realize stores of the community
• Identifying and retaining their best customers, and tweaking their overall proposition accordingly
The competition is no longer the store across the street, but comes in many channels as spectrums, mobile and web, expand. More new products and lines are being introduced month on month. Only analytics can support. As the saying goes god helps them who helps themselves, so help you business with analytics.

Time is ripe for analytics

The opportunity is there for the one who acts and acts fast. A whole pie is waiting for you to dine upon. The retail landscape, ever-expanding and changing, shaped by new-age competition defying traditional retail channels and practices, with growing online shop, has shaken many retailers out of their inertia. Worried over sustaining the competitive advantages to survive, they slowly turn to the alchemy of analytics and information technology.
The time is an excellent example of change with its ever changing and never stopping nature, with time things change for good of course, but for that they would have to move beyond their own traditional mindset. To develop a robust understanding of business along with analytics and fit solutions to challenges rather than the other way round.

Please read the below analysis and always keep in mind the following 4 simple facts:
• Indians on an average spend close to 60% of their expenditure on FOOD.
• Organized Retail has just 1% or even less share of FOOD sales in India.
• Indians spend around 10%-11% only on clothes, beauty products and footwear.
• Almost 80%-90% of sales of Shoppers Stop or Pantaloons or Trent (Westside) are clothes , beauty , accessories and footwear products and less than 10%-15% comes from food sales and that too comes from great brands of food (Nestle-Maggi , Cold Drinks , Biscuits ,Milk products ,etc which are razor thin margin business)or commodities which are again almost zero margin products.
Source: http://amitkumarblog.wordpr ess.com

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