Luxury retail gets a tech makeover

Technology investments are in vogue among global luxury retailers. Companies are investing in tech solutions around customer experience, digital payments, and driving sales and visibility, reports Romita Majumdar for The Economic Times.

Almost 55% of the technology investments are going towards online platforms driven by the pandemic-induced surge in e-commerce, said Ravi Kapoor, Partner and Leader, Retail and Consumer at PwC India. The main areas of focus for this spending are payment technologies, social commerce, resale, supply chain and logistics, and NFTs and virtual reality, he adds.

Advanced 3D, XR (extended reality), and generative capabilities — from the product development and customer experience perspective — are also technologies retailers are eyeing, said Mohan Krishnan, Global Head- Retail Strategic Initiatives at Tata Consultancy Services.

How are Indian tech and IT giants driving this transformation? Companies like Cognizant and Accenture have helped luxury retailers reimagine their digital commerce platforms, drive sales, and reinvent themselves through a technology-led approach, adds the report. Indian talent is helping global luxury retailers improve customer experience and store operations by deploying analytics-driven personalisation, multiverse fusion, intelligence inventory tracking, and omnichannel enablement, said Ganesh Kalyanaraman, SVP and Delivery Head – Global Growth Markets at Cognizant.

As brands realise the importance of investing in newer technologies, spending on them is expected to increase and reach up to 3-4% of sales by 2030, according to Kapoor. Retail companies are spending significantly on tracking demand trends and consumer behaviour — for communication purposes and strategising supply chain requirements, said Anand Ramanathan, Partner and Consumer Industry Leader, Consulting at Deloitte India.

How do you see technology shaping the retail space? Share your thoughts in the comments.