First thing first , A big thanks to Retailers Association of India to be pro active in bringing retail community together for identifying & solving problems of trade. We are humans that survive better in groups, so do their businesses. The principle of collaboration works when ecosystems exists. We at Freedom Smart Labs Ltd envisage the vision of Global Ecosystem for Hyper Local O2O Retail.
India is a country of 20M+ merchants who have a big role in defining their respective localities. At Delhi Retail Summit 2016 it was a big discussion on will GST implementation be done smoothly in our country or not. All a retailer wants is Freedom to operate & grow. Yes, GST is a good mechanism & a sign to bring offline & online players to certain equality in terms of covering boundaries.
Other players in supply side are Mall Developers. Next question that comes is are their more players willing to bringing in more Malls for customers. Findings from leaders like Yogeshwar Sharma, COO Select CityWalk , Knight & Frank, JLL & more were quite insightful but only focused on supply side of story. Yes, the market knows that to construct a mall today the developer needs to shell out 4500 INR per sqft and to operate we need electricity, water, security, house keeping & a bit of marketing. I am bringing my readers to basic so that the real problem can be understood well.
Let us understand in filmy style. Think of Shahrukh Khan , he is star because his fans love him. Think simple, who are your fans or you need to build your fans everyday to make your mall as star mall. I know you all understand its customer & of-course every developer & mall/market management is working to their best to address the subject of understanding customer. Lets move forward to solve this & understand facts.
The Youth of Today is Independent, Confident & Expressive.
FACT #1: Offline retail is a market that is 100x the size of e-commerce in India and constitutes of millions of merchants providing services like restaurants, fashion, spa, beauty, yoga, sports, gym, etc. This market is ripe to get disrupted as internet users in India move towards 600 million by 2018.
Now what is happening that in the age of Digital Era we are bringing solutions from Stone Era. The Digital Shopper is the word to understand & we need to come together to build a big picture. Don’t forget this Digital Shopper is same who has capabilities of shopping online so now arrives a new competition who operates at way below your cost of Rs.4500/per sq ft has 24×7 window of operation and indeed much better understanding of behaviors of Digital Shopper.
FACT #2: The offline retail market in India will be reaching $1 trillion by 2020. A study by advisory firm Ernst & Young says the current market is close to $600 billion in size, organised retailing (including e-commerce) is less than 10 percent of the market.
Ninety percent of them are semi-organised and are waiting to organise themselves and serve their target audience better.
FACT #3: Seventy-five percent of the revenues of Shoppers Stop come from its FirstCitizen loyalty programme, which has more than four million registered customers.
However, smaller family businesses are dependent on the loyalty of the catchment and are not dependent on any intelligence to convert a sale to extra margins
At Freedom Smart Labs we are on a mission of #SmartShops2020 . We are expanding geographies & our business model is funded primarily by Malls, Retailers and the Brands. We make them stars in the eye of Digital Shopper. Our flagship product is Freedom.desi – India’s 1st App for Discovering Malls.
Freedom.desi – How it Works?
We bring the shopper on one platform Freedom Desi App which offers them Store Discovery & connect in real time with offers. Malls, Brands & Merchants use the cloud & app platform to engage or provide personalised offers to nearby proximity shopper on Freedom Desi App. The USP of product is one touch connect of retailer & shopper on Freedom Desi App.
FACT #4: China’s Hyper Local player Meituan-Dianping, which in January raised $3.3 billion at a valuation of $18 billion, according to a Techcrunch article. They are solving similar issue in even larger size geography & population.
We are an Internet of Things (IoT) and Analytics company aiming to build products ready for Digital Shoppers.
Founder & CEO
Freedom Smart Labs Ltd