Microsoft Dynamics AX for Retail in India: An Emerging Economy Perspective
Microsoft announced the release of Dynamics AX for Retail in India in late February of this year. This release is not only a milestone in Dynamics product development, but I would argue it is the perfect opportunity to examine the product in the context of several key opportunities in the rapidly changing and growing Indian retail market.
With a population of 1.2 billion people and borders stretching from the mountains of Hindukush (Afghanistan) in the west to the jungles of Burma in the east, India is the world's largest democracy. The Indian retail industry is the fifth largest in the world. With growing market demand, the industry is expected to grow at a pace of 25-30% annually up to US$ 535 billion in 2013, reflecting a fast-growing middle class, demanding higher quality shopping environments and stronger brands.
However only 10 per cent of that Indian retail growth is expected to come from organized retail, Microsoft Dynamics has already been a success story in the Indian retail market. The flagship product, LS Retail for Dynamics NAV had stormed the market with more than 130 customers in 4 years, including a who's who of the retail industry. To me, it was a perfect example of ISV execution through partner Dynamic Vertical solutions. By comparison, SAP has fewer than 100 retailers added over more than 10 years.
And the competition has one more reason to feel uneasy.
Through my involvement with the Indian launch of Dynamics AX for Retail, I have had the opportunity to meet with many retail prospects. In general, retailers believe that any full-featured retail solution must allow them to tap into emerging opportunities such as:
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Rural
markets
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