2019-2022 has so far been the worst for India’s retail industry. The second wave of the Covid-19 in India is seeing businesses scrambling to limit the direct impact of the pandemic on employees and customers, by bringing in efforts to limit the spread of the virus. As governments try to implement measures like lockdowns, it is common knowledge how businesses across the world have been affected by this pandemic. The real estate sector, however, had already seen signs of trouble long before the popularisation of this deadly virus, with declining consumer demand and the threat from online and discount models much earlier.
The impact of covid on the retail industry was, in certain ways, similar to that of the dotcom bubble. However, it was also different in some critical aspects. It led to a decline in business confidence and behavior in the market. It ushered in a wave of change in the way businesses functioned. It gave rise to new ways of doing business, by fostering joint ventures and mergers among established retailers and encouraged the formation of new entrants into retailing markets.
Retail industry is seeing a major shift in its structure and functioning. The second wave of digital disruption is upon us, with disruptive innovations such as blockchain, AI and machine learning, AR/VR and others gaining huge popularity among retail customers. In the coming years, we are going to see the retail industry being disrupted by these new technologies in a major way. We have discussed below 4 key challenges faced by retailers during covid-19 in retail sector:
Planning of Inventory:
A new study by Accenture has revealed that a majority of retailers (79 per cent) are concerned about the supply chain risk they face. The survey findings show that while many retailers have begun to focus on the importance of supply chain risk management, they are still challenged by inefficiencies and gaps in their processes. Retailers are increasingly adopting new technologies to better manage their supply chains, but gaps remain in how effectively they can use these technologies for greater visibility and control.
Customers Postponing:
The current market situation is full of uncertainties, with customers postponing their purchases and preferring low-end products. Maintaining price points on high-end products has become especially challenging, as due to the current ambiguous situations, customers are either postponing their purchases or opting for low-end products.
Maintaining Price Velocity:
Over the past few years, the growth of ecommerce in India has been exponential. Ecommerce sales in India have grown by more than 200% in the past three years and are expected to grow at a CAGR of 34% to reach INR 12 lakh crore by 2021. Owing to this rapid growth, ecommerce has become an integral part of the Indian economy and the country has witnessed an exponential rise in online marketplaces.
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Conclusion:
To sum up, a cyber security breach is a ‘big deal’ – even if the Covid-19 virus proves to be just an isolated incident. But given the frequency of retail cyber attacks in recent years, it’s clear that the stakes are getting higher for retailers of all sizes and across all industries. Retailers will need to take an introspective look at where they stand to mitigate any risk that is more significant than what most companies in their industry already face. While no two breaches are exactly alike, understanding how you’re positioned to leverage solutions can help with decision-making down the road.
By being proactive and taking the necessary steps to learning more about the Covid-19 virus and its impact on your business, you can be sure that your company is equipped to respond in an effective manner, ensuring maximum effectiveness of your response plan.