Automation is making it easier for businesses to run their operations more efficiently.
By 2026, the global retail automation market is expected to reach a value of $24 billion and still rise further, fueled also by rapid advancements of artificial intelligence as well as innovative technologies revolutionizing various industries such as banking, healthcare and more so all other sectors are bound to follow suit.
With the world already heading towards moving towards a more digital and omnichannel approach to connecting with customers, retailers inevitably have to start employing technology in the most effective possible way to take things forward.
Technology has become increasingly important for retailers as it allows them to run their business more efficiently and effectively. There has been an exponential rise in the popularity of these automated retail solutions, although this is not a new phenomenon. Let's look at how automation can be used to bolster the growth of retail in India.
The growth of e-commerce has given a major boost to the growth of online retailers in India. Indian eCommerce is expected to reach $75 billion in 2022, according to statistics.
This growth is due to two factors – first, the increasing affordability of smartphones and internet access. Second, the rising trends towards consumerism and buying experiences that are available through e-commerce platforms.
Automation is making it easier for businesses to run their operations more efficiently. Increasing automation has also led to cost savings for businesses, enabling them to grow more rapidly than their offline counterparts.
Apart from cost savings, automation also enables businesses to better focus on their core competencies. In this way, online retailers can focus on marketing their products rather than having to deal with the logistics involved in operating a physical store.
The rise of automation and its impact
Automation has made the retail industry more efficient. Retailers have been able to improve their operations and increase profits as a result of using these technologies, which include inventory control, order processing, and customer service. These innovations are among those that let companies take full advantage of the versatility offered by automation!
In addition, online retailers are now using automated systems and softwares to handle customer orders efficiently. This ensures that customers receive the items timely.
And with the world already heading towards moving towards a more digital and omnichannel approach to connecting with customers, retailers inevitably have to start employing technology in the most effective possible way to take things forward.
Chatbots, for example, are improving how retail professionals interact with customers. This is because they can better serve their queries or make suggestions regarding merchandise based on a deeper understanding of what they're looking for.
Improving customer experience leveraging AI and ML.
AI can be used to identify customer needs and preferences, recommend products and services, and even automate customer service.
In addition to automating customer service, AI can also help retailers improve customer loyalty by personalizing experiences and recommendations. It helps to foster relationships with customers.
AI can also help retailers improve their marketing campaigns by using data to target potential customers with the most relevant offers.
Overall, these technologies are providing a wealth of opportunities for Indian retail businesses to keep up with the competition and deliver seamless customer experiences across multiple touch points.
Indian retail is taking a big step in advancing and modernizing, specifically when it comes down to integrating technologies like IoT and AI (Artificial Intelligence) into their business. It will become increasingly digitized as India continues to integrate new technologies. So, by utilizing these developing technologies, Indian retail businesses can provide their customers with seamless experiences.
- Authored by Vinay K Mayer, Director - Market Research & Consulting @ Asia Research Partners LLP