| I recently went with my friends to Shoppers Stop | | | | based on value, premium and bridge-to-luxury |
| store at Inorbit Mall, Mumbai. I am a regular consumer | | | | shoppers (BTL). |
| of their products. I was pleasantly surprised to find that | | | | In future retailers must use analytics tools to expand |
| the footwear section had been moved to the ground | | | | their network. It is better to do primary research to |
| floor. Initially it was on the first floor. Now it was right | | | | understand market potential value of catchment areas. |
| next to the Indian wear section. Previously after buying | | | | Such kind of analysis will definitely help retailers to |
| the ethnic wear I had to move to the first floor to buy | | | | choose the apt place to open the store. They can |
| footwear. When I enquired about the change, the sales | | | | decide if they want to open more than one store in |
| person out there said that it was the result of an | | | | the same place. Consumption analysis, expenditure |
| adjacency analysis conducted by Shopper's Stop. | | | | analysis, category wise analysis, market potential |
| They conducted an analysis for more than twenty | | | | analysis can be made by the retailer before a larger |
| four months and finally from the customer data they | | | | expansion of their store. |
| found that consumers who buy ethnic wear tended to | | | | Future Group has been able to push their sales by |
| buy footwear as well. Based on this insight they | | | | monitoring the demand rates at their stores. They |
| changed the footwear section to the ground floor and | | | | agree that analytics play an important role in their store |
| soon found a 25% growth in sales. | | | | planning. It is a fact that usage of analytics is still at its |
| Most retailers have started implementing analytics | | | | infancy. In India, analytics is still limited to studying |
| inside their stores. The stores actually keep a | | | | consumers and transactions. The banking sector |
| database of the actual buying behavior of the | | | | though has matured more in using analytics. They have |
| consumer. Analytics include study of consumer | | | | started using predictive modeling too. Indian retailers |
| behavior, analyzing the transactional data and | | | | should understand the importance of analytics and |
| predictive modeling. Initially the retailers track their prime | | | | they should invest in it. |
| consumers, their lifestyle, locations, social and economic | | | | Landmark from Tata group has set up an internal |
| background. From the transactional data the retailers | | | | team for analytics which is trying to understand the |
| plans to move from one area to another to maximize | | | | issues like cannibalization. Cannibalization refers to |
| their sales. The toughest and the critical one is the | | | | reduction in sales volume, sales revenue or market |
| predictive modeling. Retailers can get an idea of how | | | | share of product. There are several reasons for |
| consumers upgrade their purchase behavior. As the | | | | cannibalization. When a retailer opens a new outlet |
| lifestyle changes the consumers interests also | | | | near another outlet, the new outlet may get some of |
| changes. Retailers can decide where to setup their | | | | the consumers from the old one. Such teams can also |
| future stores depending upon the future lifestyle of | | | | identify best locations depending on the address of its |
| consumers in a catchment area. It is very important to | | | | regular consumers; can make a list of consumers who |
| place the right product at the right time in the right | | | | may have dropped out due to changes in their buying |
| store. | | | | habits. Retailers can also make a study on their under |
| Before starting a retail outlet, the company should | | | | performing stores, make necessary changes |
| make a study on the buying patterns of the | | | | immediately so that they do not loose their sales. Even |
| consumers in that area. In South Kolkata Shoppers | | | | though the use of analytics can makes changes in the |
| Stop made a study and found that consumers were | | | | retailers business, it will take some time for the |
| shopping more frequently for accessories than apparel. | | | | business to grow to its maximum. Finally, the ultimate |
| They managed to dedicate a much larger space to | | | | decision maker is the consumer. It is the responsibility |
| the beauty section at their new store. Retailers can | | | | of the retailer to make the consumer leave their shop |
| also divide their database into different segments | | | | with a smiling face. |