Retail industry in India is undoubtingly to be a one of the best growing retail industries globally. With the mounting globalization of retailing, both in terms of their points of supply and points of sale the information technology (IT) spend in this sector have increased extensively. Information technologies in retail endeavor not only to boost the effectiveness of retail establishments in various areas of their operations, but also to get better customer service owing to the automation & customizations. IT industry plays an increasingly vital role in the organization of complex retail operations. Some of the associated benefits include improve accuracy of demand forecasts & production plans, advertising & promotions, data processing & analysis, supply chain improvement, efficiency across business functions, customer experience & loyalty and the multi- channel retailing etc.
According to study, “IT Market Potential for Retail in India, By [Applications (In-store Management, Customer Centric Management, Headquarter Management, Supply Chain Solution Management), Technology Types (Hardware, Software, Services), Verticals, Regions (Metros, Mini Metro, Tier I, Tier II & Below) ] – Trends & Forecast: 2015-2020” some of the factors c currently operating in the IT market potential for retail in India are Oracle Corp., Cisco Systems Inc., Wep Peripheral, Tata Consulting Services, RanceLab, International Business Machines Corp (IBM), Infosys Ltd., RetailCore, Cognizant, Wipro. Lt, SAP.
Based on the application, IT market potential for retail in India is segmented into In-store management, headquarter management, customer centric management and supply chain solution management. In-store management includes inventory, loyalty, Point of Sale (POS), store integration framework and Customer Relationship Management (CRM). Headquarter management includes financial, HR & payroll, advertisement management, master data management, asset management and web enabling & ecommerce. The customer centric management includes marketing management, customer promotions, merchandise management and space management. The supply chain solutions management includes transportation management, order management, procurement management, warehouse management and product life cycle management.
Based on the technology types, market is segmented as software types, hardware types and services types. The technologies used may be the smart operating system, Enterprise Resource Planning (ERP) and Radio Frequency Identification (RFID). ERP helps in integrating all departments & functions within the businesses in a single computer system that provides the specific requirements from the different departments. RFID is used for the check-out process, smart labeling and overhead reduction. Based on the region, the market is segmented into mini metro, metros, tier I, tier II & below.
The IT market potential for retail in India is primarily driven by operation support system followed by strategic decision support system, CRM systems and visual merchandising. Apart from the major profits, some of the hindering factors include intellectual property rights, followed by international trade law, data protection and telecom & information technology laws. In addition, some of the opportunities driving the market growth include Omni channel retailing, quick response codes and voice hardware for warehouse. However, few of the challenges such as transparency & tracking includes Payment Card Industry (PCI) security compliance, global data synchronization and customer data etc. The Indian IT market potential for retail is expected to reach at US $81.2 billion, by 2020, at a CAGR of 16.7%.
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IT Market Potential for Retail in India
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