Despite all the noise about e-commerce platforms, online retail sales is merely 1.5–2.5% of the total retail sales today, which is expected to grow to 8–10% in the next five to seven years. Even in a developed market like the US, online retail sales are less than 20% of overall retail. The deep discounting by these online marketplaces has changed consumer behavior forever, who now equates online to discounts and demands similar price cuts from offline stores. No wonder, most offline retailers run a sale or offer discounts for half the year.
“Here’s where SwagBag steps in to disrupt in the offline retail space, because our belief is that offline retail has huge potential, which if tapped, can add another dimension to sales. Shoppers expect the same service and experience they receive online. Hence, it is imperative for the store to know what their shoppers are potentially interested in. We aim to give meaningful actionable insights on running sales and offers in store. While it is important to know what is getting sold, we believe it is more important to know what is getting liked and not getting sold,” shares Shagun. An idea that has seen WallMart and A-list designers keen to test its potential.
Enthusiastic about her idea, Shagun says SwagBag was born out of the need to give shoppers an in-store digital shopping experience. “It allows shoppers to create an offline wish list of all the things they like in the store during their shopping journey, and avail personalised offers on their wish list.”
SwagBag then consolidates this data from the store and does an analysis on it with the help of machine learning and AI to help stores launch personalised campaigns, capture missed opportunities, do merchandise planning and ensure customer loyalty.
“The aim is to ensure that the brand starts a loop of meaningful communication with their prospective clients and create an extended community of happy and loyal customers,” says Shagun, determined to change the perception of both the buyer and the merchant in the offline retail space. “India’s retail market is expected to cross $1 trillion by 2020. There is enough space for each format to grow and thrive, provided they continuously innovate,” she concludes.