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The phygital route to enhanced customer loyalty

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When customers know they can rely on a brand to deliver a consistent and satisfying experience everywhere, they are more likely to return, recommend the brand to others, and develop a deeper, long-term connection with it

In an age where the lines between online and offline shopping experiences are increasingly blurred, the concept of ‘phygital’ is taking centre stage in the retail world. This hybrid approach enhances convenience and autonomy and crafts a more engaging and personalised journey for the consumer.

Recent studies underscore the significance of this shift. For instance, according to Mailmodo, 40% of consumers make an in-store purchase at least once a week, compared to 27% who shop online with the same frequency. Furthermore, research from Think with Google reveals that nearly 80% of shoppers will visit a store when they need or want an item immediately.

Interestingly, IBM research shows that nearly three-quarters of retail customers still prefer to shop at a physical location rather than online. However, two-thirds of consumers discover new products through the web. This duality has compelled retailers in recent years to redefine their strategies and find innovative ways to stay connected with their audiences.

Physical is just one part of the equation

While physical stores remain essential, they represent just one part of the overall brand experience. Customers interact with brands across various touch points—from social media and review platforms to emails and online advertisements. These digital interactions play a critical role in shaping perceptions and influencing decisions. Therefore, a true brand experience is only achieved by seamlessly blending these digital touchpoints with the physical store experience, ensuring consistency and continuity across all channels.

Catering to Diverse Customer Preferences

Customers have different preferences for interacting with a brand, influenced by factors like demographics and the nature of the transaction. For example, younger customers might prefer digital interactions, while older ones may lean towards in-person experiences. By creating phygital experiences, businesses can cater to these diverse needs, offering a variety of interaction methods on the platforms customers prefer. This flexibility not only enhances customer satisfaction but also fosters stronger brand loyalty by ensuring that each customer’s expectations are met, regardless of his/ her preferred mode of engagement.

Enhancing the In-Store to Online Purchase Journey

For many brands, especially the ones that specialise in travel accessories, the phygital approach plays a crucial role in bridging the gap between in-store exploration and online purchasing. Many customers visit physical stores to examine the quality, design, and functionality of products firsthand. This tactile experience is essential for assessing the practical benefits of travel accessories. However, they often prefer the convenience of completing their purchase online. By integrating digital touchpoints within the physical store, such as interactive kiosks or mobile apps, brands can facilitate a seamless transition from in-store evaluation to online purchase. This strategy not only enhances the overall customer experience but also ensures that the brand meets the evolving needs of travellers who value both hands-on inspection and digital convenience.

What Customers Expect

Consistency is key to building trust and loyalty. Today’s customers value a cohesive experience that bridges the gap between in-store and online interactions. Whether they’re exploring products in a physical store or browsing online, 71% of customers say they expect the same level of service, quality, and engagement. By extending the in-store experience into the digital realm, businesses can create a predictable and reliable brand journey, encouraging customers to return and engage with the brand across multiple platforms.

In the modern marketplace, brand loyalty is increasingly shaped by the ability to deliver a consistent and personalised customer experience across both physical and digital channels. Phygital experiences play a crucial role in this by ensuring that customers can engage with a brand in a way that suits their individual preferences and needs. Whether interacting with a brand in-store, online, or through a combination of both, customers appreciate the seamless and cohesive experience that phygital offers.

By integrating digital touchpoints into the physical shopping journey, businesses can meet customers where they are, providing convenience, accessibility, and personalisation. This approach not only caters to a broad demographic spectrum but also ensures that every interaction reinforces the brand’s promise of quality and reliability. The result is a more satisfied customer base, which translates into increased brand loyalty. When customers know they can rely on a brand to deliver a consistent and satisfying experience, they are more likely to return, recommend the brand to others, and develop a deeper, long-term connection with it.

Digital Icon : Mohit Malik

Mohit Malik, the Chief Technology Officer at Chaayos, is a driving force behind technological advancements and an enthusiast committed to building robust and scalable data systems that empower businesses to excel. At Chaayos, his focus lies in transforming chai culture, creating warmth, fostering authentic connections, and delivering delightful experiences.

British fashion brand Asos launches on Ajio

With this India foray, Asos plans to tap into the growing appetite for international brands in the country

New Delhi: Fashion e-tailer Ajio announced the launch of Asos on its platform, bringing the brand into the country. The British fashion brand will be available exclusively on Ajio from Friday, a release by the company said.

“Asos is perfectly poised to tap into the Indian market with India’s favourite online fashion destination Ajio, catering to the young Indian shoppers looking for the latest in global fashion. This addition further strengthens Ajio’s repertoire of top exclusive international brands, enabling us to deliver the best fashion worldwide,” Vineeth Nair, chief executive officer (CEO), Ajio said.

Asos has launched over 3,000 options across its curated portfolio of own brands including Asos Design (menswear and womenswear), Asos Edition, Asos Luxe & Miss Selfridge. With fresh launches every month, the brand plans to expand its repertoire to 20,000 options in one year.

“Ajio’s strong presence and understanding of the Indian consumer makes them the perfect partner for Asos as we work to bring the best style to fashion lovers worldwide. We’re excited to launch our trend-led brands in India and see our iconic fashion resonate with Ajio’s customers,” said José Antonio Ramos, chief executive officer (CEO), of Asos.

Ajio has planned a 360-degree media launch campaign across online and offline channels to promote Asos. The brand will also unveil a groundbreaking Mixed Reality experience in the coming days, offering an interactive showcase of its trendy products.

Ajio, an integral part of Reliance Retail is a fashion-first platform offering over 6,000 brands and 1.7 million styles with a wide variety of exclusive international brands, owned labels and homegrown brands.

Govt seeks proposals for setting up e-commerce export hubs

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These hubs would be designated areas, which would act as a centre for favourable business infrastructure and facilities for cross-border e-commerce activities

New Delhi: The government has sought proposals from the industry to set up e-commerce export hubs (ECEH) in the country for examination, support, and hand-holding.

Based on the proposal, further details, including software requirements for ECEH, to facilitate seamless and expeditious export clearances, will be firmed up, the Directorate General of Foreign Trade (DGFT) has said in a trade notice.

In this regard, it said, draft modalities for the operation of these hubs have been formulated.

Based on the draft modalities proposed, the government would like to initiate a pilot launch of ECEH.

“In this regard, detailed proposal(s) for setting up ECEH may be submitted to this directorate, for examination, support and hand-holding,” the DGFT said.

In the Budget, the government announced setting up of these hubs to promote exports through e-commerce medium in public-private-partnership (PPP) mode. Initially, there are plans to set up 10-15 hubs in the country.

The major objectives are to provide predictability and the shortest possible turnaround time for e-commerce exports, easy re-import for e-commerce returns or rejects, and bring various cross-border e-commerce stakeholders under one roof.

At present, India’s exports through this medium are only about $5 billion compared to China’s $300 billion, annually. There is a potential to take it to $50-100 billion in the coming years.

The draft modalities for operations of these hubs talked about the movement of goods from the supplier’s premises to ECEH; pre-screening of goods; design of these hubs; and process flow for customs clearance once a buyer is found.

ECEH will have two physical components — first will be the fulfilment area for packing, labelling, and storing to take place after pre-screening and till a buyer is found; and the second will be a customs station where the goods will be customs cleared after the buyer is found, ready for dispatch.

Through these hubs, small producers will be facilitated to sell to aggregators and then that aggregator will find markets to sell. Export products, which hold huge potential through this medium include jewellery, apparel, handicrafts and ODOP (one district one product) goods.

In such hubs, export clearances can be facilitated. Besides, it can also have warehousing facilities, customs clearance, returns processing, labelling, testing and repackaging.

A report by economic think tank GTRI India’s e-commerce exports have the potential to reach $350 billion by 2030, but banking issues hinder growth and increase operational costs.

India has set a target of $1 trillion of merchandise exports by 2030 and cross-border e-commerce trade has been identified as one of the mediums to meet this aim.

Decathlon now available on Zepto

Decathlon’s products will become available pan-India on the next-door Q-commerce platform, within next month

Bengaluru: French sporting goods retailer Decathlon will now be available on the quick-commerce delivery app Zepto, with Bengaluru as its initial launch location, according to a social media post by a top company official. Zepto is promising to deliver the products within 10 minutes. 

Decathlon’s products will become available pan-India on the next-door delivery platform, within next month.

“Decathlon Sports India is now live on Zepto. Starting in Bengaluru today and scaling pan-India next month,” Aadit Palicha, co-founder of Zepto, said in a LinkedIn post on Thursday.

Recently, audio and wearable brand Boat partnered with Zepto to deliver products to the doorstep. Read more about it here

Founded in 2021 by Stanford University dropouts, Palicha and Kaivalya Vohra, Zepto is a Mumbai-based e-commerce company. Zepto has delivered over 10,000 products across categories in 10 minutes through a network of delivery hubs nationwide.

In June, Zepto raised $665 million (about Rs 5,560 crore) in the latest funding round that valued the firm at $3.6 billion, almost triple what it was a year back, according to a PTI filing.

Amazon India launches ‘Project Ashray’ to setup rest points for delivery associates

In collaboration with the Udyasa Foundation, the initial pilot project will establish five Ashray centres at high-footfall locations

Bengaluru: E-commerce marketplace Amazon India has launched ‘Project Ashray’ in order to set up rest points for delivery associates across the entire logistic industry, in cities such as Delhi NCR, Bengaluru, and Mumbai, according to a company press release on Friday. 

In collaboration with the Udyasa Foundation, the initial pilot project will establish five Ashray centres at high-footfall locations, with the first one, located in Gurugram, being inaugurated by Michiko Miyamoto, India country director at International Labour Organisation.

“Project Ashray is a significant part of our broader efforts to improve driver experience and well-being,” said Abhinav Singh, vice president – operations, at Amazon India. “By providing dedicated rest points with essential amenities, we aim to ensure that all delivery associates, whether with Amazon or other companies, have the best possible and most comfortable environment while they work.”

The rest-points will include comfortable seating, access to clean water, mobile charging stations and parking spaces. Each centre can accommodate up to 15 people at a time and will be operational from 9 AM. to 9 PM. The facility’s usage will be free and limited to 30 minutes per visit per delivery associate. 

“We are hopeful that such good practices can inspire more stakeholders in India and globally to take initiative in extending labour and social protection to platform workers,” said Miyamoto.

The locations of the centres will be added on Google Maps for easy access. 

Amazon India is also exploring the public-private partnership (PPP) model for the development of additional resting facilities under Project Ashray in the coming months. These proposed facilities will include guarded restrooms ensuring the safety of women drivers, shade during monsoons or heat waves, internet connectivity, first aid support, and an electric two-wheeler charging facility at government-subsidised prices. 

Earlier this year, the company introduced initiatives like ‘Sushruta’, a comprehensive health and wellness program for truck drivers, and ‘Pratidhi’ Scholarship, which supports the education of the children of delivery associates. 

American e-commerce and cloud computing company Amazon entered India in June 2013 as an online marketplace. The company delivers to 100% serviceable pin codes in India, with more than 97% PIN codes, now being able to receive deliveries within two days of placing an order.

Coca-Cola India appoints new market head for India Southwest Asia

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Singh will succeed Arnab Roy, who was recently named the Global Category President, of the Coca-Cola Trademark

New Delhi: Beverages major Coca-Cola on Friday said Greishma Singh has been appointed as the new market head for India Southwest Asia (INSWA) Operating Unit.

Singh will succeed Arnab Roy, who was recently named the Global Category President, of Coca-Cola Trademark. Her appointment will be effective September 1, 2024, according to a company statement.

Before this, Singh was Vice-President of Customer and Commercial Leadership (C&CL) for the INSWA Operating Unit.

She has been with The Coca-Cola Company for over 15 years and held roles across marketing, strategy and C&CL in Australia and India, it added.

Singh, an alumnus of the Indian School of Business, Hyderabad and Colorado College, will continue to be based in India in her new role.

Summercool to inaugurate new manufacturing plant in Prayagraj, UP

The new manufacturing plant spans over  5,000 sq. m. 

New Delhi: Home appliances brand Summercool is set to inaugurate its latest manufacturing plant in the Naini Industrial Area, Prayagraj, a release by the company said on Friday.

The new manufacturing plant spanning 5000 sq. m. with state-of-the-art facilities is set to showcase a significant step towards boosting economic development, the release added.

Nand Gopal Gupta, cabinet minister of the Uttar Pradesh government has assured full support from the state’s Micro and Small Industries Ministry.

With an initial investment of Rs 10 crore, this unit is poised to play a crucial role in enhancing the company’s manufacturing and production capabilities. This new plant is set to employ around 100-150 people, catering to the growing demand for Summercool’s products in Uttar Pradesh and neighbouring regions, including Bihar, Bengal, Jharkhand and Nepal.

Bikaji Foods International acquires 55% stake in Ariba Foods Private Ltd.

This acquisition will enhance Bikaji’s frozen food capabilities and export capacity

New Delhi: Bikaji Foods International Ltd. has announced the acquisition of a 55% equity stake in Ariba Foods Private Ltd., a leading Ujjain-based company specializing in snacks and frozen foods like samosas, naans, parathas, and sweets, according to a release by the company.

This strategic investment, totalling Rs 60.49 crore, will enable Bikaji to enhance its frozen food production capabilities and expand its market presence.

“We are thrilled to announce our acquisition of a 55% stake in Ariba Foods Private Limited,” said Deepak Agarwal, managing director of Bikaji Foods International Limited. “This strategic move not only strengthens our capacity for export growth but also supports our entry into the QSR segment. By integrating Ariba’s state-of-the-art production capabilities, we aim to enhance our frozen snacks and savouries manufacturing.”

The acquisition comes at a pivotal moment as the frozen food sector experiences rapid growth driven by technological advancements. With a positive growth perspective, the industry is set to leverage these innovations to meet increasing consumer demand and expand its market presence.

“This acquisition marks an exciting milestone for Ariba Foods. With our advanced production facilities and export expertise, we are well-positioned to meet Bikaji’s production needs. Our strategic location and state-of-the-art manufacturing capabilities will enable us to drive significant growth in the frozen food category together,” said Gaurav Baheti, Promoter of Ariba Foods Private Limited.

Intensive Softshare Private Limited, a Mumbai-based investor with a strong focus on the Indian consumer industry is the sole syndicator and advisor to the deal.

Bikaji Foods International is an ethnic snacks company and a leading producer of Bikaneri Bhujia, with an annual production of 41,369 tonnes in the financial year (FY24). The brand enjoys extensive market reach across 25 states and 4 union territories as of March 31, 2024, offering a diverse range of products including bhujia, namkeens, packaged sweets, papad, western snacks, and frozen foods.

Technosport to open 15 stores across South India in FY24

Its upcoming stores will be across Karnataka, Tamil Nadu, Andhra Pradesh, and Telangana

Bengaluru: Tiruppur-based sportswear brand Technosport is gearing up to expand its presence in South India with 15-16 new stores during the current financial year (FY), across Karnataka, Tamil Nadu, Andhra Pradesh, and Telangana, according to a company press release on Friday.

New stores are planned in different formats including flagship locations, high-street and mall stores, and shop-in-shop outlets.

The retailer opened its first offline store in Coimbatore on Thursday. The store is in R.S. Puram and covers more than 1,000 sq. ft. of retail space. It offers the entire range of TechnoSport’s performance and athleisure wear.

“We are elated to launch our first flagship store in Coimbatore, which has always been a key city for TechnoSport’s growth,” said Sunil Jhunjhunwala, co-founder of TechnoSport. “This store will be the cornerstone of our wider business expansion plan.”

The brand will be organising a series of small events at the newly-launched store to encourage walk-ins and customer interaction, the release added.

“Apart from the business perspective, we aim to showcase a larger-than-life experience of our products to consumers. Using this we will strengthen our omni-channel presence by amalgamating online with offline medium effectively,” said Puspen Maity, chief executive officer of TechnoSport.

The company also plans to foray into West and North India in FY26.

Founded in 2015, Technosport provides a variety of products, including t-shirts, track pants, jackets, vests, sweatshirts, and innerwear, typically priced between Rs 200 and Rs 700. The brand is present in over 15 states and maintains more than 5,000 retailer touchpoints.

In May this year, the apparel retailer raised Rs 175 crore from A91 partners. Read more about it here.