Digital Innovation In Retail

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Digital Innovation Introduction Organised Retail in India is one of the most dynamic and continuously evolving sectors. However with a CAGR of 15% over the last five years the industry presents a unique set of challenges. Some of these manifests itself in the form of growth of internet retailing and hence huge competition and pressure to match price discounts, fragmented nature of the sector, and increasing acceptance of private labels. Continuous innovation is therefore the only way for organised retail to compete and grow in the face of ecommerce onslaught. The Innovation The innovation involves turning the frontage of any brick and mortar store (standalone high street fashion stores or in malls) into interactive window displays. Shoppers…show more content…
By using RFID (Radio Frequency Identification) technology in consonance with NFC (Near Field Communication) special promotions and information regarding prices can be shared with potential customers to their smartphones, when they pass a particular store. Therefore customers can get complete information about products and comparative deals, even without stepping into the store. Business Model A business model articulates customer value proposition, identifies market segment, defines the structure of the value chain and specifies revenue generating mechanism. It also describes the positioning within the value network or the ecosystem and elaborates on the competitive strategy through which the firm gains and holds advantage over rivals . Value proposition The value proposition that the innovation seeks to address or contribute to can be described in the following terms. Impulse purchases can therefore be maximised, as well as granular targeting can be done based on previous shopping history of unique customers. This would also maximum lead conversion for stores and provide a unique shopping experience to customers. The major benefits of this technology for stores…show more content…
This product buzz then gets translated to digital traffic in the form of shares, comments and reviews, all of which ultimately helps in building momentum for the campaign as well as generate traffic to the crowdfunding page. Potential risk The potential risks associated with the Digital Innovation are mainly in the delivery and sustainability of the technology 1. The technology is easy to copy but difficult to master. Hence any company willing to spend significant capital on market testing and deployment can be considered a serious potential competitor. However there still exists significant barrier in getting the innovation right in the first place and also convincing potential clients to partner with the company for the deployment of the technology. 2. The go to market strategy for this company is broad based and incorporates multiple sales channels as well as direct partnerships with the identified retail channels. Therefore there is possibility of significant channel conflicts. Also channel power can be more inclined towards the customers or clients, till the exact benefits accrued from the innovation is available in terms of hard

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