New Delhi: In a bid to cope up with the COVID-19 impact, heavy-weight retail and FMCG players are rolling out chatbot based WhatsApp retail channel to directly reach consumers. Retail players including Spencer’s Retail, Vedant Fashion Pvt ltd who runs ethnic fashion brand Manyavar and FMCG players including Adani Wilmar, ITC and HUL, etc are coming on this new direct-to-consumer (D2C) model of retailing where they are integrating existing retail channels.
“Everyone wants their own channel to connect with customers for their retail products rather than to depend on aggregators like Big Basket etc, so that they can offer better prices to customers without compromising on margin. Retailers will also be a part of this model. It's not only direct-to-consumer but also facilitating dealer-to-retailer, dealer-to-company, retailer-to-company modules across the value chain. A player like ITC is also exploring this option. An analysis says that any FMCG company which does not enter into this game now will be left behind as this is one of the ‘Next Normal’, said Ajay Bansal, Secretary-Retail Committee, PHD Chambers of Commerce.
Why D2C?
For small retailers, it is very important to own a channel of their own. For example, plenty of F&B players are dependent on Zomato or Swiggy. In the B2B segment as well, small retailers are dependent on some other platforms. However, the moment they get a feeling that they can own their channel through WhatsApp or other distant mediums, they go for it, said Vartika Verma, Director-Marketing, Yellow Messenger.
Wherever the conversation starts, it can also be on automated calls on Google Assistant and these can be directly connected with the company’s backend system to make it a robust structure as the companies don’t have to pay any hefty amount for that to any third party. The companies can own the complete platform with customer data and visibility.
According to Verma, there has been a lot of demand coming from retailers for such a platform as they can also digitize the complete information than depending on some other. As per Verma, the time to roll out of this solution is also very short and it can be done in regional languages as well.
Read more:Flipkart's voice assistant to help people shop for grocery
Spencer’s Retail built this chatbot model with Yellow Messenger. The technology company said it took three days to build this model for Spencer’s and once they built this, the company launched the WhatsApp number through SMSes- asking consumers to WhatsApp on this number. Otherwise, companies can also share about this new channel through Social Media or some advertisements.
“Spencer’s Retail has exchanged 4.5 million+ messages between the users and the chatbot. Revenue garnered is upwards 5 million INR in the first week. Xiaomi India has engaged38K users in the first week and revenue earned is upwards of $10 million,” informed Verma. As per Verma besides Xiaomi India and Spencer’s Retail, McDonald’ India is also working with them for similar retail channel.
“There are a lot of traditional stores whose business has been impacted due to the present situation. So there is a need to reach directly to the consumers and here this chatbot based WhatsApp model comes in rescue. Imagine companies like McDonald's or stores like Reliance Mart-due to the present COVID-19 restrictions customers are not able to visit stores and the companies are losing transactions."
"We help the companies with a chatbot connect with the consumers to buy online. Although the model was launched on WhatsApp it is not limited to only this platform. It is also available on Google Assistant. So if any customer wants to buy a red color kurta-the solution will show her all the options available on the Google Assistant. The model is omnichannel for sure, but considering India's population and its propensity to WhatsApp, it becomes the preferred channel,” said Verma.
The modus operandi
Smartphone player Xiaomi India has started with this model since May this year and said the company created this model to overcome the challenges in the lockdown phase and has been a tool instrumental in lead generation for the brand. This platform has created a perfect channel between retailers and consumers to carry out transactions on a hyperlocal level maintaining all necessary social distancing norms and has received very positive consumer feedback so far especially with new launches like the Mi 10.
Ethnic fashion brand Manyavar launched this WhatsApp based channel for select flagship stores in the first week of May. Through its ‘Book an Appointment’ feature, consumers can go to the fashion retailers’ website, get connected to a specific store sales representative through the WhatsApp number given on the website. The customer can get on a video call with the salesperson, get to see the product, can book a visit to the store, and pick the product conveniently through the number. Or the consumer can complete the entire purchasing process with the help of the WhatsApp channel only. Come July, Manyavar is going to strengthen the WhatsApp model with chatbot model to further synchronize company offerings.
While emails sent to ITC, HUL, and Adani Wilmar did not elicit any response till the time of filing this report. However, two people directly in the know of the development have confirmed their solicitation in this D2C channel.
(Written by Delhi-based journalist Sharmila Das.)
Disclaimer: The above article is based on the author's own research and ETV Bharat does not assume any responsibility or liability for the same.
