Deloitte India associates with Mapic India to launch "Know your Consumer" report
Deloitte India, in association with Mapic India, today unveiled the ‘KNOW your consumer – What you see is what you get’ report at India Retail Forum(IRF). The report emphasizes on the evolving consumer mindset dominated by digital intervention and emergence of retail intelligence to move beyond the conventional mass marketing model.
According to the report, with the emergence of a 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.
Retail in India has always been a laggard with respect to using advanced analytics to stay ahead of the curve. However, this scenario is slowly changing. According to the report, a trend called ‘Tribetailing’ is picking pace especially in the luxury segment in India. This trend allows retailers to use artificial intelligence, machine learning, and social media analytics to gain information about consumers’ shopping history, behaviour, preferences, and online activities.
Commenting on the launch of the report, Anil Talreja, Partner, Deloitte India said, “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.
The discerning Indian consumer trends are more perceivable in the rural market, and that segment is what companies need to tap more than others through community of microinfluencers and vernacular content.”
On the changing strategies of brands to tap the potential presented by rural markets, the report mentions unique initiatives aimed at catering to the demand of these markets. The new rural consumer base makes up 68% of the country’s population and is more connected than ever because of rising internet penetration. While some brands use vernacular content and create a network of rural shops, others use smaller packaging as an innovative method to spur rural spending.
Key highlights from the report
Rising significance of vernacular: Apart from the increased internet and smartphone penetration, main drivers of vernacular content are digitisation of rural India and a majority of Indian population that speak local languages; only ~15 percent of the Indian population speak English. India has nearly 250 million people using internet in local languages and this number is expected to reach nearly 600 million users by 2023. Buyers will connect better with the brand that communicates in local languages.
Customisation and personalisation of products: With increasing competition among consumer brands in different product categories, brands are finding it increasingly challenging to offer a unique value proposition. As a result, personalisation and bespoke offerings are becoming a norm to attract and retain consumers. A community of microinfluencers is another way that brands use to enhance engagement with their customers.
Digital engagements across consumer buying journey: Retail has been one of the early adopters of artificial intelligence solutions. Today, companies around the world use API-based technology to analyse user-generated content to enhance engagement rate. They also use internet of things to help their consumers browse through their products easily. In some cases, they also use artificial intelligence to add a touch of personalisation.