Praveen Shrikhande, the Chief Digital & Information Officer (CDIO) at Aditya Birla Fashion Retail Ltd. (ABFRL) on the company’s continued focus on technology adoption for improved efficiencies and its unwavering commitment to ensuring that both its front-line and back-end staff are optimally trained to harness technology for the ultimate enhancement of the customer experience
With 3,574 brand stores, ABFRL boasts India’s most extensive network of branded fashion distribution. With a diverse portfolio that spansvalue-focused fashion at Pantaloons on one end and the upscale shopping experience at The Collective on the other, the company serves a broad spectrum of customers nationwide. Advanced technology infrastructure not only delivers a seamless omnichannel experience to customers but also empowers its front-line and back-end teams to efficiently fulfil l their assigned responsibilities. Praveen Shrikhande, the Chief Digital & Information officer (CDIO) at Aditya Birla Fashion.
Retail Ltd., highlights the company’s venture into the online realm, which commenced approximately a decade ago. He elaborates, “As you are aware, ABFRL has predominantly operated as a brick-and-mortar retailer for the majority of its 25 to 30-year history. Over the past decade, we have witnessed a significant cant transformation in the retail landscape. Both us and many traditional offline retailers have had to adapt our offerings to cater to customers who seamlessly transition between online and offline shopping.”
Shrikhande emphasizes that maintaining an online presence facilitates the collection of valuable customer behaviour data, a task that may not be as efficiently achievable with a purely offline presence. According to him, leveraging the capabilities of ordering by the online platform, such as the ability to amass vast amounts of data from online shoppers, and the omnipresence of this platform accessible to customers across the country and the world, is crucial. “Harnessing these capabilities while simultaneously maintaining the visibility of your brand in the offline world, and doing so seamlessly for customers, merchandise, and internal processes, is at the heart of the innovation and digital transformation required when transitioning from being primarily an online player to becoming an omnichannel retailer,” Shrikhande explains.
“Online retail is poised to remain a significant segment, accounting for 10-15% of our sales and is likely to follow the global trend of continued growth,” feels Shrikhande.
The Changing in-store Technologies
Shrikhande reveals that ABFRL monitors foot traffic c meticulously in its offline operations to gauge the ratio of visits to sales and conversions. Utilizing visual tools linked to CCTV systems, ABFRL captures images to track the number of visitors entering the store, and
this process is entirely automated. Currently, the company has successfully integrated data streams from both online and offline sources. Its unified loyalty programme spanning online and offline realms helps the company maintain a comprehensive record of customer
purchases in both domains. “This rich dataset empowers us to tailor product recommendations and marketing campaigns for both our online and offline channels,” Shrikhande explains. Online, identifying customers is immediate, as they log into the
company’s websites. However, in a store, the journey begins by acquiring customer information, often through a mobile number or other mechanisms. This is a key distinction in how offline operations function. To address this, ABFRL has developed tools that enable the identified cation of customers through their mobile numbers or other means. The same recommendation engine employed online is now available to the in-store staff , facilitating a deeper understanding of what topics to engage the customer with—an approach referred to as Clienteling “We have implemented it at select brands, particularly those with high engagement levels. For instance, The Collective Brand, which represents our premium segment, has embraced this technology,” Shrikhande says.
However, he points out that not all tools are suited for every offline setting. Consistent Pricing across Channels Few things are more frustrating for customers than having to painstakingly compare prices for a desired product across various platforms, be it a brand’s website or other e-commerce marketplaces.
Remarkably, ABFRL has effectively maintained uniform pricing across its channels, a strategy rooted in the company’s core business philosophy, as elucidated by Shrikhande. “In technical terms, our approach is to seamlessly integrate all pricing into a centralized system within our core ERP. This single pricing source is then automatically disseminated to all channels. Any update made centrally, rejects across all marketplaces and our websites in real time. The key here lies in the back-end system integration, which is crucial for achieving a seamless omnichannel experience,” Shrikhande elaborates.
Key In-store Technological Advancements
Highlighting the array of in-store technologies implemented across ABFRL’s various brands, Shrikhande says, “Customers who visit our physical stores are typically seeking a different type of engagement compared to online shopping. To cater to this, we have introduced a virtual store concept in the form of kiosks, now available in several of our lifestyle stores. We have also incorporated footfall technology, enabling us to track store visits and gain insights into the profiles of our in-store customers.”
He goes on to explain that ABFRL distinguishes between backend processes and customer-facing elements in its in-store operations. While the company has implemented Clienteling on the customer-facing side, the backend involves automating various store
processes, such as store opening procedures and stocktaking. Furthermore, for some of its brands, it is exploring the use of RFID, which significantly simplifies inventory management. Given that most of the company’s stores are now omnichannel enabled with the ability to fulfil online orders from the store, a common have encountered the challenge of efficiently picking and packing items for online customers within the store environment. Unlike warehouses where items are systematically catalogued and stored, stores have a different setup.
“To address this, we have implemented technology solutions in select Pantaloons stores. These stores utilize a mobile application that assists staff in identifying and swiftly retrieving products to fulfil online orders that will be collected at the store.”
At ABFRL, substantial emphasis is placed on optimizing backend processes, as this ultimately enhances store efficiency and order fulfilment performance. Currently, over 40% of their e-commerce orders are fulfilled directly from their physical stores, underscoring the significance of these technological advancements in their operations.
While self-checkout systems have been commonplace in the Western world for over two decades, India is gradually witnessing the introduction of this feature in select retail establishments. For instance, the recently launched Pantaloons store in Kolkata features self-checkout capabilities, but the system is activated by the store in-charge based on the special requirements of the moment.
Integrating Franchises
In the retail landscape, the Point of Sale (POS) system stands as one of the most pivotal components. Particularly for brands boasting an extensive network of franchise stores, it becomes paramount to ensure that the POS system is under the company’s management. As Shrikhande explains, “The POS system, whether it’s within our company-owned stores or at franchise locations, is consistently managed by us. We’ve adopted this practice for several years now.” Implementing its own POS system across both corporate and franchise stores allows ABFRL to seamlessly access a unified view of its customers, regardless of their choice of shopping destination company or franchise stores.
ABFRL’s dedicated on-boarding teams play a crucial role in ensuringthat new franchisees acclimate themselves to the company’s technology ecosystem. “Presently, we are transitioning towards a comprehensive cloud-based Point of Sale (POS) system,” he explains.
On AR and VR
Shrikhande acknowledges that augmented reality (AR) and virtual reality (VR) are still in their early stages. He explains, “The concept of the metaverse experienced significant hype about three years ago, but its adoption remains limited. The primary obstacle is the high cost of devices. Creating a seamless AR and VR experience is futile if people do not possess the necessary devices. Unlike mobile phones, which are ubiquitous, the prevalence of AR and VR devices is still relatively low due to their cost.” Therefore, the use cases for AR and VR are still evolving, and the entire ecosystem needs further development. It’s a combination of the device, the applications, and customer adoption—all three elements must reach a critical mass before these technologies become truly viable, according to him. Expanding on this, he adds, “With any new technology, it’s challenging to predict when it will mature and become widely accepted. When it does reach that point, adoption can escalate rapidly, as we’ve witnessed with smartphones—the classic example.”
Meeting Customer Expectations
In conclusion, Shrikhande offers insights into the core customer expectations when engaging with a brand, whether through offline or online channels. He states, “Customers anticipate that their retail experience, be it online or offline, should be efficient and hassle-free. When placing an online order, the expectation is to receive the order promptly, stay informed about its status, receive updates about new product launches, receive personalized recommendations that align with their preferences, and enjoy enhanced engagement opportunities with the brand.”
