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
• 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• 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.
