How industry targeted data analytics as a tool of business growth is empowering retailers

Many times, we find that our perceptions are simply just perceptions, and there is no factual evidence to back our belief. Similarly, many ground realities come to light only when we get proof through data analysis. In general, no one realises the shifts and continues with business in a routine way. The fact is that data analytics is very critical to businesses today.

Unknown to most players of the industry, India has been getting business that was previously being sourced from Indonesia and the gap between exports of both countries has narrowed significantly, especially in the US, as indicated when analysing import data by the US. And bringing this fact to light is a deep analysis of export-import data of major retail markets.

That is probably why data and data analytics has become so important in today’s business environment as ‘gut feeling’ and experience alone are not enough to grab opportunities and stay ahead in a highly competitive marketplace where change is the only constant.

Data Analytics Measures Productivity

In the manufacturing side, collecting and analysing data has been used extensively to measure productivity, analyse performances and optimally manage factories. Specially trained professionals and IT enabled tools are available to the industry to collect and analyse data. Those companies that have made use of these analytical tools have benefited greatly from the findings. Most of the manufacturing units that are doing well are those who have not only understood the importance of such tools but also implemented and learned from the same.

Understanding the Consumer

Now, the retail industry is also using innovative tools to collect data for analytics. Their target is mainly to understand the consumers. Consumers are fickle-minded and their preferences can make or break a retailer/brand. From product mix, designs, colour to mode of shopping everything is dependent on what customers want.

Collecting data on how people are shopping, what are the products they are picking up, what kind of store experience excites them to something as simple as who is their favourite celebrity can make a difference to a retailer/brands success.

Key Focus on Younger Generation

In this environment, retailers are constantly looking at new ways to grab eyeballs and keep the cash counters moving. Digital platforms are being used extensively to attract the younger generation in particular, and data collected from such campaigns are vital information for the companies.

Meeting Demands from the smaller towns

It was only after online shopping sites realised that the business was majorly coming from smaller towns that did not have access to good brands and retail stores that the industry woke up to the reality that there was money to be spent in smaller towns, which till now were not within the expansion preview of most retailers.

Today every retailer/brand is looking at opening stores in Tier 2 and Tier 3 cities and even a brand like Raymond, which was always a high-end urban brand, is undertaking the same path. The power of action that data analytics can give has only just begun.

By Deepak Mohindra, Chairman, Apparel Sourcing Week