Retail is one of the most dynamic and competitive industries in the world.
It is constantly evolving and adapting to the changing needs and preferences of customers, markets, and technologies.
To succeed in this challenging environment, retailers need to have a clear vision, a sound strategy, and a strong execution.
This is where retail consultancy comes in.
Retail consultancy is the process of providing expert advice and guidance to consumer facing businesses on various aspects of their operations, strategy, and performance.
Consultants in this field help retailers improve their customer experience, profitability, efficiency, and competitiveness in the market.
Retail Consultancy Market Size: Leaping from Strength to Strength
According to Global Data, the retail and distribution consulting market is expected to grow from USD 92 billion in 2021 to USD 162.1 billion in 2027, at a compound annual growth rate (CAGR) of 9.8%.
The market size and growth rate are based on the analysis of the retail and distribution consulting market trends and drivers.
Retail Consultancy: Market Drivers in 2023
The market is driven by the need for organizations to restructure their services and recover from the COVID-19 pandemic.
The latter had forced restrictive measures such as remote working, social distancing, and closure of commercial activities, creating operational challenges for them.
Retail and distribution consultants helped organizations overcome such unprecedented challenges by using state of the art artificial intelligence (AI) and automation processes. These helped ease out performance of tasks such as data processing and analysis more efficiently and accurately than humans.
1. Artificial Intelligence as a key pivot
AI also helped provide valuable insights in areas such as sales, operations, and supply chain management.
For instance, JLL, a US-based real estate professional services and investment management firm, uses an AI-powered analysis tool to significantly reduce the workload of its specialists.
The real estate consultancy provides advice on client portfolios ranging from 1 to 100,000 properties, which used to take weeks for specialists to examine.
In the consulting field, AI-enabled data on customer journeys, client behavior and sales channels can help consultants identify new opportunities and develop effective marketing campaign plans.
2. Joint ventures, acquisitions and partnerships
Many of the retail and distribution consulting services market’s clients are expanding globally, requiring complex and global services.
More joint ventures, international investments, global expansion, and multinational companies establishing facilities in high-growth regions are expected as a result of globalization.
To test the market, companies are increasingly entering into joint ventures with companies in other countries. To reduce risk, some companies are trying to acquire an established company in a new region.
3. Increased internet penetration
Globalization in the retail and distribution consulting services market is gaining traction due to the rapid expansion of the internet, automation of consulting processes, and advancements in data security.
4. Increased segmentation
The market is segmented by application into food and beverages, personal and household care, apparel, footwear, and accessories, furniture, toys, and hobby, electronic and household appliances, and others.
The business application segment is estimated to be the largest segment over the forecast period.
5. The globalization of the retail industry
Globalization can provide opportunities for retailers to expand their markets, diversify their products and services, increase their customer base, and gain competitive advantage.
Retail consultants can help retailers enter new markets and segments, conduct market research and segmentation, analyze competitive analysis and positioning, form partnerships or alliances with local or global players.
Retail consultants can also help retailers deal with the challenges of globalization such as cultural differences, regulatory compliance, political risks.
6) The personalization of the customer experience
Customers have come to expect a seamless and personalized omnichannel shopping experience that meets or exceeds their expectations.
Retail consultants can help retailers create a customer-centric culture that focuses on delivering superior value to customers across different channels such as online platforms and apps, social media platforms, email marketing, physical stores.
Retail consultants can also help retailers use data analytics and artificial intelligence to understand customer behavior and preferences, customize offers and communication, and build customer loyalty and advocacy.
Key Trends in Retail Consultancy
- Expanding cloud capabilities: Retail consultants are increasingly helping retailers adopt cloud-based services to support remote and virtual working.
Besides, they are assisting firms optimize their IT infrastructure and data security.
For example, Deloitte launched the Deloitte Centre for AI Computing to accelerate the development of AI solutions for its clients.
- Personalizing the customer experience: Retail consultants aid organizations create a seamless and personalized omnichannel shopping experience for their customers, using data analytics, software platforms, automation, and artificial intelligence.
For example, Shoppers Stop has used retail consultancy to collect and analyze customer data, deploy chatbots and recommendation engines, and launch augmented reality and gamification initiatives.
- Predictive analysis of spending and demand: Retail consultants help retailers forecast customer spending and demand patterns, using big data, machine learning, and statistical models.
This can help retailers optimize their pricing, inventory, merchandising, and marketing strategies.
For example, Flipkart has leveraged retail consultancy to harness big data platforms and tools, deploy voice assistants and fraud detection systems, and launch drone delivery and blockchain initiatives.
- Dynamic pricing models: Retail consultants help retailers implement dynamic pricing models that adjust prices based on factors such as demand, supply, seasonality, competition, etc.
This can help retailers increase their revenue, profitability, and market share.
For example, Myntra has used retail consultancy to adopt a dynamic pricing strategy that offers variable prices to its customers based on these factors.
How Retail Consultancy Can Boost Business Performance and Growth
Retail consultancy can provide significant benefits to retailers of all sizes and sectors
Some of the benefits are:
- Increased customer satisfaction: Retail consultancy can help retailers understand their customers better and deliver products or services that meet or exceed their expectations.
This helps in higher customer loyalty, retention, referrals, and advocacy.
- Improved profitability: Advisory services can help retailers optimize their pricing and revenue model and reduce their costs and risks.
This aids higher margins, cash flow, and return on investment.
- Enhanced efficiency: Retail business assitance can help retailers streamline their processes and operations and leverage technology and analytics.
This can result in higher productivity, quality, and speed.
- Greater competitiveness: Retail experts can help retailers differentiate themselves from their competitors and position themselves for growth and innovation.
This can result in higher market share, reputation, and value.
If you are interested in learning more about retail consultancy or hiring a retail consultant for your business, please contact us at www.technopak.com/contact-us.
Technopak is a team of experienced and qualified retail consultants who can help you achieve your retail goals and objectives.
1. Product or Service
Product or service is one of the most important aspects of retail consultancy.
Retail consultants help retailers design and optimize their product or service offerings, including the depth and breadth of assortment, private-label options, product quality, innovation, and differentiation.
Retail consultants can help retailers in various ways relating directly to the product or service they offer, such as:
- Analyzing customer needs, preferences, trends, and feedback to identify product or service gaps or opportunities.
- Developing product or service strategies that align with the retailer’s vision, mission, values, goals, and target segments.
- Designing product or service portfolios that offer a balanced mix of core, complementary, seasonal, niche, or new products or services.
- Creating product or service specifications that define the features, benefits, quality standards, pricing tiers, packaging formats, etc.
- Launching product or service innovations that address customer pain points or create new value propositions.
- Enhancing product or service differentiation that sets the retailer apart from its competitors in terms of uniqueness, exclusivity, superiority, etc.
An example of the above implementations include:
- Big Bazaar, one of India’s largest hypermarket chains, has used retail consultancy to design and optimize its product offerings.
Big Bazaar has developed a wide range of private labels that cater to different customer segments and offer high quality at affordable prices.
Some of these private labels are KB’s Fair Price (staples), Fresh & Pure (dairy products), Tasty Treat (snacks), Clean Mate (household cleaners), etc. Big Bazaar has also launched innovative products such as Golden Harvest Atta (wheat flour with added nutrients), Koryo Air Fryer (a healthy cooking appliance), etc.
Big Bazaar has also enhanced its product differentiation by offering exclusive products such as Sampoorna Chakki Atta (whole wheat flour made from organic grains), etc.
Retail consultants can help retailers improve their product or service offerings by providing insights, solutions, and recommendations that can increase customer satisfaction, loyalty, and retention.
2. Customer Experience
Customer experience is another key aspect of retail consultancy. Retail consultants help retailers enhance their customer experience, including the physical layout of the store, the arrangement of merchandise, the online presence, the omnichannel integration, the personalization, and the loyalty programs.
Retail consultants can help retailers in various ways such as:
- Analyzing customer journeys, touchpoints, emotions, and feedback to identify customer experience gaps or opportunities.
- Developing customer experience strategies that align with the retailer’s brand identity, value proposition, goals, and target segments.
- Designing customer experience blueprints that define the desired customer outcomes, actions, interactions, and emotions at each touchpoint.
- Implementing customer experience improvements that optimize the store environment, the merchandise display, the online interface, the omnichannel integration, the personalization, and the loyalty programs.
- Measuring customer experience outcomes that evaluate the customer satisfaction, loyalty, retention, advocacy, and profitability.
For example:
Reliance Retail, one of India’s largest retail conglomerates, has used retail consultancy to enhance its customer experience.
Reliance Retail has developed a customer-centric culture that focuses on delivering superior value to its customers across its diverse retail formats.
Some of these retail formats are Reliance Fresh (neighborhood grocery stores), Reliance Digital (electronics and appliances stores), Reliance Trends (fashion and lifestyle stores), Reliance Smart (hypermarket stores), etc.
Reliance Retail has also implemented customer experience improvements such as modernizing its store layouts, optimizing its merchandise assortments, creating its online platforms and apps, integrating its online and offline channels, customizing its offers and communication, and developing its loyalty programs.
Retail consultants can help retailers enhance their customer experience by providing insights, solutions, and recommendations that can increase customer satisfaction, loyalty, retention, advocacy, and profitability.
3. Pricing & Revenue Model
Retail consultants help retailers develop and implement their pricing and revenue model, including the pricing strategy (such as high-low or everyday low prices), the value-added services (such as free delivery or installation), the promotions and discounts, and the data monetization.
Retail consultants can help retailers in various ways such as:
- Analyzing customer willingness to pay, price sensitivity, price perception, and feedback to identify pricing and revenue model gaps or opportunities.
- Developing pricing and revenue model strategies that align with the retailer’s cost structure, competitive position, goals, and target segments.
- Designing pricing and revenue model portfolios that offer a balanced mix of price points, value-added services, promotions and discounts, and data monetization.
- Implementing pricing and revenue model innovations that address customer pain points or create new value propositions.
- Measuring pricing and revenue model outcomes that evaluate the revenue growth, profitability, market share, and customer satisfaction.
For example:
- DMart, one of India’s most successful supermarket chains, has used retail consultancy to develop and implement its pricing and revenue model.
DMart has adopted an everyday low price (EDLP) strategy that offers consistent and competitive prices to its customers across its product categories.
DMart has also offered value-added services such as free home delivery for orders above a certain amount, cashback offers for using its DMart Ready app, etc.
DMart has also monetized its data by selling its customer insights and analytics to its suppliers and partners. The firm has achieved remarkable revenue growth, profitability, market share, and customer satisfaction by implementing its pricing and revenue model.
Retail consultants can help retailers improve their pricing and revenue model by providing insights, solutions, and recommendations that can increase revenue growth, profitability, market share, and customer satisfaction.
4. Supply Chain and Operations
Retail consultants help retailers improve their supply chain and operations, including the inventory management, the fulfillment and distribution, the procurement and sourcing, the logistics and transportation, and the cost optimization.
Retail consultants can help retailers in various ways such as:
- Analyzing supply chain and operations performance, efficiency, effectiveness, and feedback to identify supply chain and operations gaps or opportunities.
- Developing supply chain and operations strategies that align with the retailer’s product or service portfolio, customer experience portfolio, pricing and revenue model portfolio, goals, and target segments.
- Designing supply chain and operations blueprints that define the optimal inventory levels, fulfillment and distribution networks, procurement and sourcing processes, logistics and transportation modes, cost-saving measures, etc.
- Implementing supply chain and operations improvements that optimize the inventory management, the fulfillment and distribution, the procurement and sourcing, the logistics and transportation, and the cost optimization.
- Measuring supply chain and operations outcomes that evaluate the inventory turnover ratio, the order fulfillment rate, the procurement lead time, the logistics cost ratio, the cost of goods sold ratio, etc.
For example,
- Future Group, one of India’s largest retail conglomerates, has used retail consultancy to improve its supply chain and operations.
Future Group has developed a robust and agile supply chain and operations strategy that supports its diverse retail formats and product categories. Some of these retail formats are Big Bazaar, Central, Brand Factory, etc.
Future Group has also implemented supply chain and operations improvements such as optimizing its inventory levels, streamlining its fulfillment and distribution networks, sourcing its products from local or global suppliers, reducing its logistics and transportation costs, and implementing cost-saving measures.
Retail consultants can help retailers improve their supply chain and operations by providing insights, solutions, and recommendations that can increase performance, efficiency, effectiveness, and customer satisfaction.
5. Technology & Analytics
Retail consultants assist retailers leverage technology and analytics to transform their business, including the data collection and analysis, the software platforms and tools, the automation and artificial intelligence, the innovation and experimentation, and the agile and product-based operating model.
Retail consultants can help retailers in various ways such as:
- Analyzing technology and analytics capabilities, maturity, gaps, or opportunities to identify technology and analytics needs or goals.
- Developing technology and analytics strategies that align with the retailer’s business objectives, customer expectations and competitive landscape.
- Designing technology and analytics solutions that provide the appropriate data collection and analysis methods, software platforms and tools features, automation and artificial intelligence applications, innovation and experimentation approaches, agile and product-based operating model principles.
- Implementing technology and analytics transformations that deploy the data collection and analysis methods, software platforms and tools features, automation and artificial intelligence applications, innovation and experimentation approaches, agile and product-based operating model principles.
- Measuring technology and analytics outcomes that evaluate the business impact, customer value, competitive advantage.
For example,
- Shoppers Stop, one of India’s leading department store chains, has used retail consultancy to leverage technology and analytics to transform its business.
Shoppers Stop has developed a technology and analytics strategy that aims to provide a seamless and personalized omnichannel shopping experience to its customers.
The firm has also implemented technology and analytics transformations such as collecting and analyzing customer data using cloud-based platforms and tools, deploying automation and artificial intelligence solutions.
Retail consultants can help retailers leverage technology and analytics to transform their business by providing insights, solutions, and recommendations that can increase business impact, customer value, competitive advantage, etc.
6. Strategy & Growth
Retail consultants help retailers define and execute their strategy and growth plans, including the market research and segmentation, the competitive analysis and positioning, the new market entry and expansion, the mergers and acquisitions and partnerships, and the sustainability and social responsibility.
Retail consultants can help retailers in various ways such as:
- Analyzing market trends, opportunities, threats, and feedback to identify strategy and growth gaps or goals.
- Developing strategy and growth strategies that align with the retailer’s vision, mission, values, goals, and target segments.
- Designing strategy and growth plans that define the objectives, actions, resources, timelines, etc.
- Implementing strategy and growth initiatives that execute the market research and segmentation, competitive analysis and positioning, new market entry and expansion, mergers and acquisitions and partnerships, and sustainability and social responsibility.
- Measuring strategy and growth outcomes that evaluate the market share, reputation, value, etc.
For example,
- Fabindia, one of India’s leading ethnic wear brands, has used retail consultancy to define and execute its strategy and growth plans.
Fabindia has developed a strategy and growth strategy that aims to become a global leader in the ethnic wear segment by offering high-quality products that reflect the rich Indian culture and heritage.
The firm has also implemented strategy and growth initiatives such as conducting market research and segmentation to identify customer segments and preferences, analyzing competitive analysis and positioning to differentiate itself from its competitors, expanding into new markets such as the US or UK or new segments such as home furnishings or organic foods, acquiring or partnering with other players such as East or Organic India.
Retail consultants can help retailers define and execute their strategy and growth plans by providing insights, solutions, and recommendations that can increase market share, reputation, value, etc.
Retail consultancy at Technopak: Pioneering innovation in Business Advisory Services
Technopak is one of the leading retail consultancy firms in India, with over 30 years of experience and expertise in the retail and e-commerce sector.
The firm has helped more than 500 clients across continents to transform their retail businesses with innovative and customized solutions.
Technopak offers a comprehensive range of retail consultancy services, covering the entire spectrum of the retail value chain. Some of these services are:
- Retail Strategy: Technopak supports retailers define and execute their vision, mission, values, goals, and target segments.
It also helps retailers conduct market research and segmentation, competitive analysis and positioning, new market entry and expansion, mergers and acquisitions and partnerships, and sustainability and social responsibility.
- Retail Operations: Technopak works with retailers optimize their store operations, including store formats, store layouts, store design, store merchandising, store staff, store audits, etc.
It aids retailers improve their supply chain operations, including inventory management, fulfillment and distribution, procurement and sourcing, logistics and transportation, etc.
- Retail Technology: Technopak assists retailers leverage technology to enhance their business performance and customer experience.
It catalyzes retailers to implement software platforms and tools such as ERP, CRM, POS, etc.
Technopak handholds retailers in using data analytics and artificial intelligence to gain insights into customer behavior and preferences, sales patterns and trends, product performance and feedback, etc.
- Retail Marketing: Technopak aids retailers in developing and implement their marketing strategy, including branding, communication, promotion, pricing, etc.
It also helps retailers create a seamless and personalized omnichannel shopping experience for their customers, using online platforms and apps, social media platforms, email marketing, etc.
Technopak has a proven track record of delivering successful outcomes for its clients across various retail segments such as fashion and lifestyle, food and grocery, electronics and appliances, home and furniture, etc.
If you are interested in learning more about retail consultancy at Technopak or hiring a retail consultant for your business, please contact us at www.technopak/contact-us/.
Our team consists of skilled and experienced retail consultants who can assist you in transforming your retail business with expert guidance and solutions.