How 5G Will Shape The Connected Commerce Ecosystem In India
Driverless cars, interactive physical spaces, virtual shopping assistants, and remote surgeries, among others, are just some examples of a 5G-enabled hyper-connected world. A futuristic technology like 5G will enable growth across all industries. 5G powered healthcare, for instance, will entail various areas in patient-care applications, with connected devices, electronic health records, etc. The manufacturing industry will see accelerated automation and strengthening of supply chains. The large scale adoption of technology in the fintech industry will also power the applications of 5G, thereby enhancing meaningful customer interactions.
Similarly, the adoption of 5G will disrupt the connected commerce ecosystem in India. The lingering effects of the pandemic and the fast-tracked digital adoption of businesses have transformed consumer buying experiences and expectations. It is no longer enough for retail businesses to have robust online or offline channels, next-gen consumers are now looking for a seamlessly integrated shopping experience. 5G will further enhance the connected commerce ecosystem with speed, latency, capacity, and limitless opportunities for customer immersion in the connected commerce strategy.
Imagine you are in a store, shopping with a virtual assistant who is accompanying you throughout your shopping journey in the store, suggesting products based on pre-collected customer insights, directing you to special offers and helping you with other personalised interactions. This type of hyper-connected, hyper-personalised shopping experience requires the adoption of 5G driven sensors, assisting shoppers with a seamless customer experience.
Since the onset of the pandemic, retailers have adopted technology tools like AI/ML, AR/VR to disrupt online shopping experiences. However, with ever-changing customer expectations, retail brands must be on the constant look out for new technologies that will shape customer experiences. 5G is one such emerging technology trend. According to the Ericsson Mobility Report, India will have 39 per cent of 5G mobile subscribers at the end of 2027, with approximately 500 million subscribers. 5G rollout will transform the way in which people connect with businesses. It will provide retailers with limitless possibilities to engage with their customers in new, immersive ways. Some ways in which 5G will enhance the connected e-commerce ecosystem are as follows:
-AR and VR in-store experiences: One of the foremost impacts of the 5G rollout will be in recalibrating physical and digital connections and engagements with brands and consumers using augmented reality (AR) and virtual reality (VR). These technologies will help bridge the gap between real and virtual. It will bring consumers closer to the stores through their smart devices. Customers can browse through a virtual showroom and select products with minimal effort. It will also exponentially hyper-personalised a shopping experience as 5G speed will smoothen the navigation experience of consumers and facilitate immersive experiences like virtual try-on and much more.
-The growing relevance of live video ecommerce: According to a report by RedSeer, live commerce in India is expected to reach up to $5 billion GMV by 2025. Live commerce is the next wave of ecommerce and retail in India. 5G rollout will greatly impact the live commerce space in India. It will help retailers use a high bandwidth to provide a live video shopping experience to consumers. 5G’s low latency will help retailers facilitate live video shopping experiences at lightning speed.
-Personalisation and Omni Channel commerce: The retail industry is driven by the need to provide an exclusive, personalised, seamless omnichannel experience that is convenient and provides value to the consumer. With 5G, consumers using wearable technology will connect seamlessly with stores that utilise wireless technology, enabling them to receive push advertisements and personalised deals, ultimately boosting sales, and customising store visits to suit their needs.
-Increased AI applications: A leading Indian e-commerce fashion brand made use of AI chatbots to engage with 99.7% of its customers in under a minute to improve customer experience. 5G will only help fast-track the adoption of AI in the retail/ e-commerce space. It will ensure customers can receive information they desire from AI chat-bots at lightning speeds.
-Simplifying payments: Consumers are on the constant lookout for flexible payment options. Trends like Buy Now, Pay Later, etc. have increasingly gained traction since the pandemic. To leverage such emerging trends, the payment industry needs 5G solutions to ensure dedicated, safe, high-speed connections to authenticate payments quickly for a safe and seamless checkout experience. They will reduce data leakage and increase the reliability of online transactions, which is essential for the healthy growth of commerce.
-The growing relevance of Metaverse: Ubiquitous 5G high-speed internet connectivity is also likely to spawn the advent of Metaverse, a virtual world where people can relax, play, shop, and live a life in the virtual world. This is likely to attract the GenZ or future generations and industries the way the internet did two decades back.
‘Speed’ is at the centre of customer satisfaction. Retailers should focus on leveraging 5G appropriately for addressing connectivity and bandwidth challenges, specifically in brick and mortar stores. As per the Ericsson Mobility Report, 5G subscribers are expected to be 500 million at the end of 2027. The retail industry will benefit tremendously from the rollout of 5G as it will provide retailers with seamless business operations, give opportunities to enhance hyper-personalisation experiences in real-time, and most importantly increase the adoption of emerging technology solutions like AR/VR and AI to deliver personalised recommendations.
*The author is Dilli Babu Nandarapu, Founder and CEO, ShopConnect
