ITC Ltd Uses AI to Drive Product Innovation and Streamline Retail
ITC Ltd is transforming how it innovates products and serves customers by integrating artificial intelligence and digital technologies into its operations. The Kolkata-based company began this shift about six years ago, focusing on using data to spot emerging consumer trends and quickly respond with new products.
At the core of ITC’s approach is the Sixth Sense Centre, which monitors social media conversations to identify patterns and preferences. For example, through AI, the company detects dietary trends like the rising demand for millet and generates new product ideas based on popular ingredients and recipes.
Digital Supply Chain Tailored for Diverse Retail Channels
ITC has built a fully digital supply chain capable of handling different retail formats, including traditional kirana stores, modern trade outlets, e-commerce, and quick commerce platforms. Each channel has unique needs, especially around inventory management and delivery speed, so ITC uses specific demand-sensing tools to optimize each supply chain model.
The company also operates pilot plants that allow rapid prototyping and testing of products informed by these AI-driven insights. This agile approach supports the launch of over 100 new products annually.
Adapting to Quick Commerce and Dynamic Marketing
Quick commerce demands higher inventory buffers and precise forecasting due to unpredictable consumer behavior and the short shelf life of many food products. ITC’s AI tools help manage these challenges effectively.
On the marketing front, ITC is shifting to in-house content creation with a digital-first focus. AI engines dynamically generate personalized ads for different consumer groups, testing multiple ad versions in real-time until the most effective one is identified.
Balancing Multiple Retail Formats
ITC recognizes the importance of minimizing conflict between retail channels while serving each channel appropriately. From local kirana stores to online platforms and modern retail, each plays a distinct role in the consumer ecosystem.
Industry Perspective on Quick Commerce
Reliance Grocery Retail CEO Damodar Mall notes that despite the surge in digital commerce, about 72-75% of retail remains physical. Quick commerce is speeding up consumption by shortening the gap between desire and purchase, but its sustainability is uncertain.
According to Mall, quick commerce is currently subsidized by investor capital, meaning consumers benefit from lower costs that might not last. He expects the segment to stabilize eventually, with only a few dominant players remaining.
- Key takeaways for product development:
- Use AI to monitor real-time consumer trends for product ideation.
- Develop flexible supply chains tailored to different retail formats.
- Leverage rapid prototyping to speed up product launches.
- Apply AI-driven personalized marketing to improve ad performance.
- Consider the unique demands and sustainability challenges of quick commerce.
For product teams looking to deepen their understanding of AI applications in innovation and marketing, exploring targeted AI training courses can be valuable. Check out Complete AI Training’s product development courses for practical skills that can enhance your strategy.
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