This report discusses new trends and technologies that provide opportunities to transform retail in India in 2017 and beyond. It is written by the Innovation team at Omnicom Media Group India in collaboration with ISDI (Indian School of Design and Innovation), Parsons Mumbai and Academy of Customer Experience India, BPGroup UK.

1. Rise of the
Retail Phoenix
Transforming retail India with emerging technology
/

2. Contents
3 Mantras to drive future of Retail in India
04
05
06
08
21
Executive Summary
The New Indian Consumer
Unrest in Retail India
Top 5 Trends and Implications

3. The future of retail is
data, tech and experiences
”
”
/ editor

4. Retail is now everywhere, on everyone's fingertips. It is
no more just online or offline. With the dawn of the new
internet that is more connected, humane, immersive and
data driven, brands can engage directly with end
consumers with relevance, value and purpose-driven
strategies. With the consumerization of technology,
consumers are in control of brands but they are also open
to new paths to purchase.
Today consumers buy experiences, not products. As
everything around us gets uber-fied, consumers will want
to do or will have everything without owning anything.
Experiences will become the deciding factor.
Because retail is so product-centric in India today, there is
too much attention given to closing a sale. Not enough
thought is given to providing the right creative experience
to enable customers to choose and buy a product. Brands
need to create new experiences and hack into micro-
moments that occur through new channels in their path to
purchase.
Executive Summary
We believe that the Retail Phoenix is waiting to obtain new
life by rising from the ashes of its brick and mortar
predecessor. Brick and mortar retail already have the
advantage of the physical store. Providing new customer-
centric experiences can become a competitive advantage
in the new era of the informed and impatient consumer.
It is time to put on our start-up hats and take data,
technology and innovation seriously. It is time for the
Retail Phoenix to rise in India.
This report discusses new trends and technologies that
provide opportunities to transform retail in India. It is
written by the Innovation team at Omnicom Media Group,
India in collaboration with ISDI Parsons School of Design
(associated with Parsons New York) and Academy of
Customer Experience (associated with BPGroup UK).
4

5. 5
The rise of digital consumerism and the power of e-
commerce start-ups have raised expectations from retail
experiences. According to a 2015 Forrester report on
Customer Experience with consumer-facing brands across
industries, only 9% brands qualified as ‘good’ and the rest
were ‘OK’ or ‘poor’ experiences.
More than 60% of the Indian consumer population
comprises the younger generation. Living every present
moment to the fullest is more important than planning for
the future.
They showroom, webroom, comparison shop, ask friends,
look up reviews online, hunt down coupons, go shopping
online and get food delivered to their doorsteps,
workplaces and virtually anywhere. They also carry wallets
digitally via their smartphones and with a flash of the
phone, pay for transportation, food, fashion and
entertainment on the go.
Every product they purchase must be an extension of
themselves. They share views on stuff they buy online and
offline. Sometimes even throw in a bad review, hoping for
free stuff. They demand for customer service and
discounts more aggressively than ever before as if it is
their birth right.
They, with as much ease, also walk into a kirana store
(mom-and-pop store) knowing that they will be greeted
warmly by a known face who understands their needs and
offers customised products. Such is the plight of the new
Indian consumer.
While expectations have risen, one thing is clear that Indian
consumers are now comfortable with digital and mobile
technologies and are open to new experiences in their
paths to purchase.
The New Indian Consumer - Informed and Impatient
The holy grail for retail in India is to
combine the [customisation,
convenience and care] of the physical
kirana stores with the [comfort, choice
and cost] of e-commerce platforms
”
”

6. Brand, e-commerce platforms, digital, IT and Business
Operations teams operate as silos, and only team up when
necessary. The ecosystem of system integrator vendors and
digital asset development vendors are different today.
While the understanding of digital is growing amongst
business leaders, the lack of proof from digital investments
in driving bottom line growth is slowing down change.
6
Since 2015, Indian start-ups and global e-commerce
companies have leverage new digital technologies to put
the customer at the centre of business and elevated the
standards of customer service. This has caused a lot of
unrest within brick and mortar retail companies in India.
Today as we continue to serve the informed and impatient
Indian consumer enabled by mobile devices, Indian
unicorns face the risk of being outspent by global
counterparts. To top this, what works in the West may not
work in India. In the US, retailers grapple with the ability to
offer customers personalised experiences across both
their online and physical stores. In India, far more complex
challenges exist within the ecosystem of organised and
unorganised retail.
Currently unstructured, disparate data silos exist in brick
and mortar retail companies attempting to go digital.
There are issues with information flow not only across the
e-commerce platforms and physical stores, but also within
sales, marketing, operations and customer service. Lack of
transparency exists in offline business that is so innate to
e-commerce platforms.
Unrest in Retail India
Many technology initiatives get
stalled due to siloed teams, lack of
investment and fear of affecting
existing business operations
”
”

7. 7
Trending Opportunity
Resulting Impact
2017 India
Retail Trends

8. 8
Unstore & Repurpose
for Phygital Retailing
Internet of Me
Immersive
Shopping Experiences
Selling to Humans,
not Consumers
Walletization of Retail
1
2
3
5
4
IMMERSE
PERSONALISE
CO
N
N
ECT
HUMANISE
TRA
N
SA
CT
2017 India
Retail Trends

9. In this era of the digital consumer, customer satisfaction
means creating and fulfilling new and individual experiences.
As technology enables ad blocking online and ad skipping on
TV, marketers are increasingly searching for ways to better
engage consumers in person.
Marketing today is increasingly playing a role in driving
growth, not just enabling business. With the consumerization
of digital, consumers are in control of brands. New consumer
technologies can also bring new opportunities for brands to
break through the clutter and create new experiences for
consumers.
Today customers are ready for more than just a retail store -
free Wi-Fi, take-away content, and physical pickup of
products is a good start but to transform retail, the physical
world of retail and customised online experience need to
unite in a fluid and unself-conscious way.
The internet has enabled information access for customers
but information by itself is job half done without the
experience. With content driven engagement, brands need to
turn stores into spaces for stories that encourage human
interaction and collaboration.
Brands are looking to ensure in-store content and their
communications are useful, informative or entertaining to
readers and viewers.
The in-store experience has to continue the story the brand
is trying to convey. Brands need to create valuable and
meaningful stories for the consumer, hitting the right person
at the right time – and in the right environment.
Brands are now designing their event experiences with
content generation top of mind. In-store events are the
ultimate catalyst for content creation and more importantly,
distribution and social amplification.
Today consumers buy experiences,
not products. Retail needs to sell
content-driven experiences
”
”
9
Unstore Brick and Mortar

10. KEY IMPLICATIONS
Going direct to consumer gives opportunities to brands
to rip through the value chain and directly sell to the
consumer. This is not a new concept. Dell's direct to
Consumer model revolutionised retail by effectively
leveraging the last generation of the internet (aka web
2.0). With the dawn of the new internet that is more
connected, humane, immersive and data driven, product
and manufacturing has immense opportunity to engage
directly with end consumers with relevance, value and
purpose driven strategies.
In-store navigation for large format stores, digital displays
for product information, customer centred store layouts,
engaging music, and inviting aromas are some of things
retailers can no longer ignore to differentiate with
themselves.
To optimise the shopping experience for customers, retail
companies have to offer customers a networked
shopping environment as well as products that are
specifically tailored to their desires.
Customers should be able to search for product
information and information about relevant products via
a safe and reliable Wifi network in the store. Customers
can also receive buying incentives via shop-related
mobile coupons in real-time while shopping.
Samsung Creates Experience
Ford Connected Studio
Sephora Make-up Tutorials
Samsung is among the retailers creating
experiential spaces that don't dedicate precious
square footage to stockrooms. Trying to better
engage consumers with interactive stores
Ford is changing customer mindset of its
activities as a 100 year old brand and
communicating the change from automotive
manufacturer to Smart Mobility experience
provider.
Sephora installs makeup stations, allowing shoppers
to learn from Youtube tutorials. These stations will
help enrich the experience for the customer who
wants to sample the product.
10

11. Repurpose for Phygital Retailing
Today lack of real-time personalised offers, long lines and
poor customer assistance at retail stores are key deterrents
in the current physical store experience.
With retail sector emerging as one of the largest sectors in
the Indian economy and organised retail growth predicted to
grow from 8% to 24% of retail, brick and mortar retail have
an incredible opportunity to bring back the customer to the
physical store but with a differentiated experience.
Channels are driving this retail growth, and their composition
has an impact across both the revenue and the cost base of
the organisation.
With new digital channels emerging every year there are
more interaction options for retailers and their customers.
Indian consumers today are as comfortable shopping online
as in a retail store in their neighbourhood. As the lines
between physical and digital get blurred, retail needs to
imbue their brick-and-mortar operations with updated
missions.
Merge the thrill of discovery with
freestyle mixing and combining
of online and offline shelves
”
”
11

12. KEY IMPLICATIONS
While companies attempt to go ‘omnichannel’, just being
present across multiple channels is not going to cut it.
This will require implementation of a fluid, seamless
experience across channels driven by consumer data
aggregated from multiple sources.
Having a physical presence itself is a competitive
advantage for established retail businesses that are
facing the risk of being outspent by global e-commerce
counterparts.
Retail has opportunities to revamp the experience with
technology, not just in customer service but across each
stage of the purchase journey – research, discovery,
choice, payment, delivery, post sales, rewards, etc.
Kenneth Cole
Rebecca Minkoff
Myntra Goes Offline
The physical stores adopted the online feature by
introducing product tables that displayed items
laid flat on a low surface, offering a more physically
tangible version of the online concept and
contributing to the feeling of a refreshed store
design.
Rebecca Minkoff adds “smart” mirrors to flagship store
dressing rooms. No cameras are involved in the tech
integration. RFID tags recognise each item brought in
and shoppers can pull up product screens that show
the item styled with different looks, as well as other
available sizes and colours, much like you would find
when shopping online
Myntra will open offline stores in the next three
months. The hybrid model of running online stores
with a select physical presence is finding takers for
many online commerce companies.
12

13. According to a recent PWC report, 55% of consumers
admitted to using their smartphones for researching
products on the go before making a purchase. Internet
penetration is influencing the gaming, retail, information,
social media sectors in the growing Indian economy. Mobile
internet has overtaken the traditional use of text messages
and connected people more closely. This has enabled people
to communicate and share their views on various topics on a
digital platform. In a country like India with such diverse
cultures and languages and population the content on the
internet is huge.
The true value of the internet comes from the need to
connect people to people (and not things). As things around
us continue to get more connected, there comes the need to
personalise content with context in order to avoid
information clutter. The Internet of Things should improve our
daily lives by understanding our behaviors, habits, and
interests and providing us unique experiences based on time
of day, location, weather, device and other real-time
contextual data. To become more sentient, it needs to
provide experiences based on what consumers are often not
conscious of and almost echoing their choices.
Internet of Me: Shift from e-tailing to me-tailing
The vision of transforming
any ‘thing' into media for
personalised brand connect
is becoming a reality
”
”
13

14. KEY IMPLICATIONS
Retailers can use technology to boost their omnichannel
offerings by integrating tools into their apps like barcode
price-scanners and beacon-powered notifications. These
features create a smoother shopping experience,
increasing return visits.
The main players of the latest retail technology include
beacons, RFID, and smart digital displays. Retailers can
also improve location-based marketing programs to
create more personalised and intimate shopper
relationships. The Internet of Things is a network of
everyday devices connected to the internet, continuously
collecting data. IoT is helping retailers learn more about
their customers.
Amazon Dash Button is a Wi-Fi connected device
that reorders your favourite product with just the
press of a button. Each Dash Button is paired with
a product of the customer’s choice, which is
selected through the Amazon App.
Godrej Nature’s Basket Beacons
Amazon Dash
Bajaj Allianz Drive Smart
Godrej Nature’s Basket deploys sensors to collect
the precise location and information about
shoppers. The sensors will give that information, if a
person is near a particular section in the store.
Bajaj Allianz General Insurance launched ‘Drive
Smart’ to reward customers who drive safely and
well. This will be done through a device fitted in the
car and an app which provides real-time feedback on
driver behaviour including on over speeding,
changing gears in the wrong fashion, too much idling
or driving rashly.
14

15. In the race to improve customers' experience online,
designers are working to reduce the number of clicks it takes
for a visitor to become a customer. Web designers and user-
experience experts are trying to bring the real-life
experience of shopping to e-commerce such as recreating
the fit and texture for an online shopper.
Virtual reality, Augmented reality and Mixed reality
technologies immerse consumers in sensory and
personalised product experiences. With consumers now
having the power to control their experiences as they want,
these technologies have the potential of taking personalised
storytelling to the next level.
Immersive shopping experiences
To reduce return rates for items
bought in-store or online, consumers
should be provided with ‘what you
see is what you get’ experiences
”
”
15

16. Symphony EYC launched iCapture, an image
recognition technology to track implementation and
compliance of assortments, product placement, and
promotional space; identify out-of-stock issues and
evaluate brand share of shelf.
Eyes In The StoreKEY IMPLICATIONS
Providing real-time information and immersive product
experiences in the awareness phase of the customer
journey can help shorten the purchase cycle and aid with
faster conversions and reduce return items. This can help
bridge a common trust gap that typically prevents
consumers from shopping online especially with products
that require touch, feel and other types of sensory
experiences such as apparel, furniture, beauty,
automobile, real estate products.
L'Oréal Professionnel introduces Style My Hair, the
virtual hair makeover tool. Browse through countless
haircuts, hair styles, professional hair colours and
effects to find the one of your dreams. Adjust the
hair around your face, as well as the colour effects for
that perfect look.
L’Oreal Virtual Hair Makeover Tool
IKEA VR Game
Put on your VR headset and prepare to explore
IKEA kitchen in full 3D. Walk around & interact with
some parts of it just like you were there.
Instantly change the look and feel of the kitchen
by selecting a different material finish.
16

17. Walletization of Retail
In India, mobile commerce represents nearly 50% of online
retail sales; and an average consumer spent over 11 times
more time on retail apps in 2016 compared to 2014.
Consumers are opting for digital payments for not just e-
commerce and transportation but to make big-ticket
purchases such as gold and cars. Mobile wallets such as
Paytm, MobiKwik, Oxigen have emerged as the most
significant contributor in pushing cashless and electronic
payments. The growth in m-wallets is mainly a result of a
simpler payment process and the growing penetration of
smartphones with ease and perceived security driving this
momentum.
As of March 2016, Paytm alone has more than 130M active
users across platforms - Web, WAP, Mobile, APP, SMS, IVR,
point of sale with payments accepted through all
instruments - Net Banking, Credit/ Debit/ Cash Cards.
Researchers forecast that the country’s mobile wallet
business will grow to about US$ 11.5 billion by 2022. With
the roll out of UPI (unified payment interface), it will allow
transactions to take place through a single virtual ID or
mobile number, authorised by banks. The purpose of UPI is
to bring the convenience offered by wallet companies to
those who only have bank accounts.
The disruptive nature of m-
wallets is a lifestyle enabler with
new revenue opportunities for
retail and brands
”
”
17

18. KEY IMPLICATIONS
India offers a unique potential for homegrown as well as
global retailers to seize the mobile opportunity. As the
Indian shopper continues to drive mobile commerce,
mobile-first apps from retail and brands should woo first-
time smartphone users using unique and innovative
approaches. The opportunity lies in bringing different
ecosystems together to provide value in the daily lives of
customers. The growing number of mobile-only payment
options provide shoppers with flexibility and convenience
like no other online shopping channel. In fact, today many
customers are dropping off the purchase cycle if they
don’t find their preferred choice of payment option.
Paytm’s rapidly growing offline payment network gives
small merchants instant settlement at almost zero cost.
They are targeting small merchants which will include
Kirana stores, Autowallas, Taxi drivers & Milk
Cooperatives.
Fintech Meets Health
Kirana Walletization
Tap & Go
Axis Bank has partnered with fitness wearable
startup GOQii to integrate NFC payments on its
platform. This is the first time that fintech and health
are coming together in the Indian startup ecosystem
Visa Checkout introduces new interactive button
for faster mobile commerce. The consumer sees a
picture of their card on the button, swipes it to the
right, and simply enters a password inside the
button itself to authenticate.
18

19. Selling to Humans, not Consumers
Customer expectations have risen to levels where retailers
need to serve information anywhere and anytime. The
content is available online but lacks human connect. The
known face at the kirana store or your favourite mom and
pop garment shop is perceived to be irreplaceable.
Store employees are not knowledgeable enough to help
consumers with their needs. There is too much attention
given to closing a sale and not enough to providing
personalised experience to enable customers to choose the
right product.
Humans connect with emotions,
not technology. Humanising
algorithms is essential for connect
”
”
19

20. KEY IMPLICATIONS
Networking and interaction with the customer in the
shop needs to improve in order to shape the customer
shopping experience in the future. Enabling the store
assistant with product and customer intelligence in real-
time can close these gaps.
According to Ray Kurzweil, by 2029 computers will
achieve humans level of intelligence. Amazon’s Alexa,
Google’s Allo, Apple’s Siri and Facebook’s chatbots are
already using Artificial intelligence to recommend better
products and services personalised to our needs.
Store employees can have real-time access and display
product information and personalised recommendations
for customers on a portable device. Purchases can thus
be made anywhere on the sales floor directly with the
customer.
Also, customers value a timely response to service
questions above any other customer service aspect.
Response times can be boosted by utilising chatbots to
assist the inquiries. The bot can even make suggestions
for products that might fit the customer best.
Macy’s developed in partnership with IBM Watson an
AI powered shopping assistant. This tool frees up staff
and provides shoppers with helpful information as they
navigate stores
Yes Bank has done more than 13,000 transactions
in terms of transferring funds since the launch of
its Yes Tag bot. Customers seek the bot’s
assistance for performing simple actions such as
requesting a cheque book, cancelling a cheque
payment, obtaining term deposit details etc.
Macy’s Shopping Assistance
YES Tag Bot
Domino’s has officially launched its Facebook
Messenger chatbot that lets you order a pizza
with just one word “PIZZA.” Because really, why
complicate something so … uncomplicated?
Pizza Bot
20

21. 3mantrasHow to drive the future of retail in India
To compete in the age of digital consumerism, traditional retail businesses will need to
transform their current structure, processes, and technology to become more innovative,
agile and experience-driven. While such a strategic change is difficult for companies to
fathom, it is now a necessity for survival. Those who look only to the past or present might
miss the future. Here are three mantras to drive the future of retail in India.
21

22. 1India is about innovation born out of hardship and necessity.
‘Less is more’ has always been the mantra of Indian
innovation. Born of scarcity and lack of capital, frugal
innovation or ‘Jugaad' is generally at the core of innovation.
The belief that there are better and more cost effective ways
to use the materials and processes drives creativity in
business. It’s just not about making things cheaper but also
better, more appropriate and scalable.
Take the example of ‘Kan Khajura Tesan’ – a mobile-based
media channel created for rural markets that have minimal
access to mainstream media like TV. This pull-based content
marketing channel not only reaches the masses effectively
but also provides vernacular content sponsored by Unilever’s
brands.
Businesses that think about the end consumer stand to win.
Paytm is integrating into the daily lives of Indians in every
way possible – not only enabling e-commerce, but now also
integrating with petrol stations and kirana stores.
Hacking growth with ‘jugaad' comes naturally to most Indian
entrepreneurs. Cash on delivery is a well-known payment
type on almost every Indian e-commerce site today. Utility
payment kiosks are helping consumers pay their utility bills,
refill talk time and more. Mobile POS and outside-store
kiosks are slowly gaining traction to manage the crowds
rushing into grocery stories over the weekends. Messaging
apps like Whatsapp for retail have rapidly grown amongst
kirana stores, now forcing e-commerce to embed chat
features into their apps.
Hardship driven Innovation
Due to lack of capital, innovation in
India is generally not about
implementing the newest technology
and process, but creatively applying
mainstream technologies for greater
scale and impact
”
”
22

23. 23
2For the first time in history, individuals are developing the
ability to share information with everyone at any scale and in
just a few seconds. The consequence of this is that
traditional retail is becoming volatile as a business model and
retailers have to adapt their business proposition to a
continuous change process that is being led by their
customers.
Why design thinking? In this rapidly changing consumer-
driven environment, retailers need to put on the start-up hat.
They should cultivate creative confidence and a passion for
experimentation. The need to fail fast with a test and learn
approach is much needed today.
Much of retail is built on creativity — whether it’s fashion,
electronics or other goods designed to capture the attention
of consumers. But retail employees have been distracted by
the overall business purpose and have set aside the ability to
apply creativity to customer interactions.
Design thinking with its user-centred problem solving
methodology is a perfect tool for retailers to better
understand their customer’s shopping motivations and the
role they will play in their customer’s buying process.
Take a look at Apple stores where it's not about the
technology but designing the store for simplicity, discovery,
freestyling and doing-it-yourself yet assisting as needed.
There are no waiting lines. It’s about relevant showcasing of
products based on neighbourhood, season and other
personalisation with 'less is more' in mind.
Design Thinking
Start with design, then
think technology
”
”

24. 24
3Besides high cost, the lack of humaneness and fear of
disruption to existing operations have been key deterrents to
leveraging new technologies for business growth in India.
The concept of calm design that is invisible, humane,
elegant, and non-intrusive is now being widely applied to
technology design, as per Amber Case - cyborg
anthropologist. These factors can help not only improve
adoption of new retail technologies but also create a unique
brand experience.
Also in today’s age where every thing around us can
potentially become media, digital technology would mean
clutter for experiences if personalisation and ‘calm design’ is
not effectively implemented.
Calm grocery shopping: Imagine a smart shopping cart
where the cart knows your shopping list, helps you navigate
the store and guides you to the products you need. It also
provides offers on these products and serves content like
recipes from your favourite chef. As you walk down the aisle,
it sends out a soft ambient indicator letting you know of a
new product, that maybe of interest to you, has a special
discount.
A virtual shopping assistant makes this entire experience
more humane and interactive, only providing you help when
you need it. It also knows that you have a dinner this
weekend and recommends customised food for the party.
In the above scenario, technology is woven into the journey
and requires the least possible amount of attention. It
improves the shopping experience by knowing the customer
and communicates to inform and assist in a calm and
humane manner.
Calm Technology – The Method In The Madness
While the right use of consumer
data can drive personalisation,
lack of calm technology
interfaces is job half done
”
”

25. The intersection of technology,
content and culture is the sweet
spot for retail experiences
”
”
/ editor

26. About
Laxman Murugappan, Co-founder & Principal consultant
Academy of Customer Experience is partnered with BPGroup from UK.
Academy of Customer Experience / BPGroup is a global Customer Experience & Process Improvement
consulting firm. A trusted advisor to leading businesses, governments, and institutions that brings on the
table unique insight to Customer Experience trends on a global stage, along with ‘next practice’ insights,
approaches and strategies to deliver success across all sectors.
Siddharth Shahani, Executive Director
ISDI is committed to a new model of cutting edge design and innovation education, integrated with
commercialization of design. ISDI students and faculty create an enabling ecosystem in the corporate world
(India and abroad) to catalyze design thinking. ISDI brings about an Indianization of global innovations while
working out a global perspective to Indian innovations.
Editor: Avinash Jhangiani, Chief Innovation Officer / avinash.Jhangiani@omnicommediagroup.com
Omnicom Media Group is the media services division of Omnicom Group Inc. (NYSE: OMC), the leading
global advertising, marketing and corporate communications company, providing services to over 5,000
clients in more than 100 countries. Omnicom Media Group India’s new innovation offering hacks growth for
clients and transforms their businesses with new and emerging technologies in areas of customer experience,
sales and operations, and new revenue generating models.

27. November 2016