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RETAIL INDUSTRY

Effects of PEST framework in retail industry: -


 Technical advancements
 Use of Artificial Intelligence
AI helps retailers analyse customer data and change how interactions happen with
the shoppers. AI is helpful in predicting demands of products so the stores can
manage inventory efficiently and have the in-demand supplies available at all times.
Fields that would improve with the use of AI are-
-Store Inventory Management
-Supply and Logistics
-Personalized Shopping Experience
-Price Optimization

 Robotics
AI unlocks entirely new capabilities for robots, which, without AI, are rigid and
unresponsive to the world around them. We were able to spot many real life
applications at the intersection of robotics and AI.
-Robotic cocktail (robots are replacing man labour)
-Robotic Pharmacy (fully served medical system)
-Computer vision (to be future ready)
-Smart walls (smart screens in malls for displaying contents)

 Newer learn and green technologies


Green practices adopted by Indian Retailers in Supply chain management to reduce
wastage by using eco-friendly techniques and substantially increase in their profit
margin and in Corporate Social Responsibility (CSR). Following are the business
practices to GO GREEN-
-Printing less stuff= Using less paper
-Hybrid format of small shops= Digitalization
-Going for LED lightning

 Shortage of raw material


Demand for raw materials continues to grow unabated: global population growth,
the rapid rise of the middle class and the continuous emergence of new
technologies and applications place ever greater demand on natural resources.
The growing, long term imbalance of supply and demand threatens business
performance across the board. Firms unable to insulate themselves against the
threat of scarcity will face significant challenges with their financial performance,
growth and long term competitive advantage.
 Economic Scenario
 Performance of economy
Retailing in India accounts for over 10% of the country’s Gross Domestic Product
(GDP) and around 8% of the employment. The Indian retail market is expected to
grow to US$1.1 trillion by 2020(as per IBEF), while the modern retail market in India
is expected to double in size over the next three years. The introduction of Goods
and Services Tax (GST) and the demonetisation move supported the growth of
organized retail industry.

 Monetary policy
As a norm, governments have refrained from bringing in big-ticket changes or new
schemes in an interim budget. The government has been proactive towards
increased spending and creation of quality infrastructure. Promoting partnership
and collaboration for accessing new channel capabilities, digital technologies and
easier entry into new market may help in optimizing costs.

 EXIM policy