GenAI in General Trade: Transforming India's Distribution Landscape
Posted by ZöTok on September 13, 2024•5 min read
Every business owner faces a common challenge: a constant flood of inquiries—from rate checks to order status updates to trivial ledger queries. In the era of Generative AI, these routine tasks can and should be automated, allowing business owners to focus on growth-driving activities like business development, hiring, and relationship building.
Traditionally, sales processes have relied on “systems of record” such as Salesforce, Zoho, and HubSpot—tools designed for accounting, bookkeeping, or CRM management. However, they fail to address the crucial aspect of communication. At Zotok.ai, we believe that commerce will transition to digital conversations, moving beyond these outdated systems. In fact, conversational commerce, particularly via platforms like WhatsApp, is already the driving force behind General Trade in India.
The WhatsApp Challenge: Unstructured Data
Distributors often manage multiple WhatsApp groups and broadcast lists to handle communications. However, the data generated from these interactions is typically unstructured, leading to several problems:
- Fragmented Information: Key data remains buried in endless message threads, making it difficult to search and retrieve important details.
- Manual Intervention: Distributors must manually convert orders into invoices and process cash transactions, creating workflow gaps.
- Increased Errors: Without a structured format, the risk of human error rises, leading to delays and missed opportunities.
The Need for a WhatsApp-Native Solution
At Zotok.ai, we believe the solution lies in creating a WhatsApp-native application that can seamlessly convert unstructured data into a structured, searchable format. Such a tool bridges the gap between WhatsApp communications and ERP systems, eliminating inefficiencies and streamlining processes.
Key Benefits of a Structured Framework for WhatsApp Data
- By integrating WhatsApp data into a structured framework with Zotok.ai, distributors can:
- Improve Efficiency: Automated processes reduce manual effort, speeding up order-to-invoice cycles.
- Reduce Errors: With structured data, there's less room for human error and delays.
- Enhance Operational Effectiveness: Distributors gain actionable insights from organized data, enabling better decision-making and smoother workflows.
Disruption in Sales Platforms
The WhatsApp Challenge: Unstructured Data
Distributors frequently manage multiple WhatsApp groups and broadcast lists to handle their communications. However, the data generated from these interactions is often unstructured, leading to several operational challenges:
- Fragmented Information: Important data gets buried in long message threads, making it difficult to search and retrieve key details.
- Manual Intervention: Distributors need to manually convert orders into invoices and handle cash transactions, creating workflow inefficiencies.
- Increased Errors: Without a structured system, the likelihood of human error increases, resulting in delays and missed opportunities.
The Need for a WhatsApp-Native Solution
At ZöTok, we believe the answer lies in a WhatsApp-native application designed to convert unstructured data into a structured, searchable format. This solution bridges the gap between WhatsApp communications and ERP systems, removing inefficiencies and streamlining processes.
Key Benefits of Structuring WhatsApp Data
By integrating WhatsApp data into a structured framework, distributors can:
- Improve Efficiency: Automated processes reduce manual intervention, speeding up the order-to-invoice cycle.
- Reduce Errors: A structured format minimizes human error and helps avoid delays.
- Enhance Operational Effectiveness: Organized data provides distributors with actionable insights, improving decision-making and workflow efficiency.
A New Way of Selling
Indian commerce is heavily influenced by General Trade, which plays a pivotal role in the country's retail landscape. General Trade, including traditional retail channels like Kirana and mom-and-pop stores, accounts for approximately 85% of the total retail market in India.
Despite their traditional operations, General Trade businesses have shown impressive adaptability to digital tools. For example, UPI transactions in India reached around ₹20 lakh crore in FY 2023, showcasing the growing adoption of digital payment solutions. Similarly, WhatsApp's widespread use among small businesses and traders highlights the shift toward accessible digital platforms like Zotok.ai.
The General Trade sector is poised for robust growth, with the retail market projected to grow at a Compound Annual Growth Rate (CAGR) of 10-12% over the next five years. This growth highlights the increasing digital demands of these businesses.
A survey conducted by Meta and Bain & Co., titled “Win with Conversations,” revealed that Generative AI is now a top priority for businesses. Around 95% of Indian enterprises surveyed are familiar with Generative AI, and over 80% plan to invest in such solutions within the next 1-2 years.
As General Trade operators continue to seek efficiency and revenue growth, they are ready to embrace solutions that integrate seamlessly with popular tools like WhatsApp while enhancing operational value. This trend clearly shows their willingness to adopt innovations that align with their digital preferences and operational needs.
How does Geneal Trade operate currently?
Transforming the Order-to-Cash Process in General Trade
The current order-to-cash processes in General Trade involve minimal software interventions and are largely manual. This small store owner represents 90% of General Trade in India, and Zotok.ai offers a solution that modernizes this process. With our easy-to-use, mobile-friendly AI application, businesses can continue operating on WhatsApp while digitizing their operations.
This small store owner represents 90% of General Trade in India, yet no one is building an end-to-end solution that digitizes their order-to-cash lifecycle. These businesses need a solution that allows them to continue operating on WhatsApp while modernizing their operations through simple, mobile-friendly, easy-to-use applications.
AI-Native Sales Solutions: A Game-Changer
At Zotok.ai, we're not just offering AI-enhanced versions of existing software. We're offering AI-native sales solutions that can automate repetitive tasks like order processing, pricing inquiries, and payments. This is a game-changer for small and medium-sized brands that lack the resources for detailed sales analysis.
Consider this: Large brands like HUL and P&G can afford big sales teams to gather and analyze detailed sales data, allowing them to produce actionable insights. However, a medium-sized brand or a small manufacturer, like a local food processor in Indore, often lacks the resources for such comprehensive data analysis.
Bridging the Gap with AI-Powered Solutions
Zotok.ai's AI-powered solutions centralize data from distributors and retailers onto a single platform, allowing businesses to track sales at a granular level. Brands can use these insights to tailor their strategies, from promotions to product lines, to meet the needs of regional markets.
In a diverse market like India, a one-size-fits-all approach doesn't work. Brands must customize their offerings to align with local tastes and preferences, and AI-powered solutions make this possible.
Distributor/Wholesaler/CFA - The Real King of Retail
Distribution: The Backbone of Indian Commerce
Distributors drive 85% of all General Trade and form the backbone of the Indian consumer market's supply chain. Yet, despite their importance, very few software solutions exist for them. At Zotok.ai, we're addressing this gap by offering AI-powered solutions designed specifically for distributors.
The Challenges in Distribution
- Supply Chain Inefficiencies: Managing and optimizing supply chains remains a significant challenge, with disruptions causing delays and increased costs. In fact, 79% of companies experienced supply chain disruptions last year, underscoring the need for more resilient systems.
- Demand Forecasting: Predicting customer demand accurately is difficult. Overstocks or stockouts harm profitability, and traditional forecasting models often fail to capture the complexities of modern markets.
- Customer Experience: Distribution companies must meet rising expectations for fast, accurate, and personalized service, but many struggle to provide the level of service today's customers expect.
- Labor Shortages and Workforce Management: There is a growing shortage of skilled labor in the industry, making effective workforce management a continuous challenge.
How GenAI is Solving These Problems
Generative AI offers innovative and impactful solutions to these challenges:
- Enhancing Supply Chain Resilience: GenAI can analyze vast data sets to predict and mitigate disruptions before they occur. AI-driven predictive analytics can identify bottlenecks and suggest alternative routes or suppliers, ensuring a smoother and more resilient supply chain.
- Optimizing Demand Forecasting: Machine learning algorithms can analyze historical data, market trends, and external factors like weather to provide more accurate demand forecasts. This reduces the risk of overstocking and stockouts, optimizing inventory levels and profitability.
- Personalizing Customer Experience: GenAI can personalize customer interactions by analyzing data and predicting preferences. AI-powered chatbots, for example, can handle up to 80% of customer inquiries without human intervention, providing fast and accurate responses.
- Workforce Management and Automation: GenAI can predict labor needs based on demand forecasts and automate routine tasks, allowing workers to focus on more complex, value-added activities—critical in an industry facing labor shortages.
Market Impact
The blending of sales, marketing, finance, and customer success is essential for distributors to thrive.
Distributors typically rely on a field force to visit retailers and take orders, like traditional door-to-door sales, but focused on retail outlets. Marketing efforts are usually limited to promotional materials, such as pamphlets and cash incentives for retailers. Customer support is often managed by distributors themselves or a small team, creating siloed operations.
This siloed approach results in inefficiencies and challenges in collaboration. Imagine the impact of integrating all these teams into a single platform. By sharing real-time insights and context, teams can collaborate more effectively, streamline operations, reduce redundancy, and enhance transparency.
The Future of Distribution
The integration of Generative AI into distribution is no longer just a trend; it's a strategic necessity. According to a BCG survey, 89% of executives rank AI and Generative AI among their top technology priorities for 2024. With Zotok.ai, businesses can modernize their processes and ensure long-term success.
The Road Ahead
The integration of Generative AI into distribution is no longer just a trend; it's a strategic necessity. According to a BCG survey, 89% of executives rank AI and Generative AI among their top technology priorities for 2024. With Zotok.ai, businesses can modernize their processes and ensure long-term success.
Over the last two decades, the Indian stock markets have seen a transformation, largely driven by the surge in retail investor participation. We've moved from making investment decisions based on tips and intuition to a more data-driven, research-oriented approach. Today, even the average retail investor understands concepts like P/E ratios and free cash flow (FCF)—something that would have been unheard of a generation ago. Ask your grandfather if he considered these factors when investing, and he'd likely say no.
Just as our investing habits have evolved to embrace data-backed decision-making, our businesses must do the same. Moving beyond traditional methods and adopting a data-driven approach to business operations is no longer optional—it's essential. The rise of Generative AI is making this shift not only possible but crucial for success in today's highly competitive landscape.
Embracing the Future of Distribution with Generative AI
The evolution of Indian commerce, particularly in General Trade, has reached a critical point. The traditional methods that once drove growth and stability are now being outpaced by the demands of the digital economy. The integration of Generative AI into the distribution landscape is no longer a choice—it's astrategic imperative that will shape the success of businesses in the years to come.
At ZöTok, we believe the key to unlocking the full potential of distribution lies in embracing AI-native solutions that streamline operations, enhance communication, and provide actionable insights. By bridging the gap between traditional processes and digital innovation, we empower distributors, retailers, and manufacturers to operate with greater efficiency and effectiveness.
The future of commerce is conversational, data-driven, and powered by AI. For those ready to embrace this transformation, the opportunities are boundless. While the road ahead may be challenging, it is also filled with immense promise. By adopting Generative AI and modernizing business practices, we not only meet today's demands but also lay the foundation for a more resilient and prosperous tomorrow.