More than 80% Indian retailers don’t see e-commerce as a risk, finds a brand new research. It added with buyer-centricity and competitors from e-commerce in thoughts, retailers are upgrading the in-retailer expertise with expertise.
The research carried out by NeoGrowth, a MSME-centered NBFC, ‘Click & Mortar: The Evolution of India’s Retail Ecosystem’, added that offline retail will proceed to occupy a bigger share of the Indian retail sector, elevating itself to a ‘Click and Mortar’ mannequin by adopting digital instruments.
The research, overlaying round 3,000 Indian retailers and buyers throughout greater than 25 high cities in India, has analysed how bodily and on-line retail experiences complement one another.
Arun Nayyar, MD and CEO, NeoGrowth, stated, “India’s retailers have stood the test of time and have always innovated to keep growing and enhancing customer experience. Our study revealed that Indian shoppers have a strong preference for shopping at physical stores and enjoy the personalised approach of their local retailers.”
Check key findings of the report below-
Resilience of Offline Retail:
Despite the speedy progress of e-commerce in India, a big majority of outlets stay assured about their bodily storefronts. Only 18% say that their gross sales have been impacted by on-line promoting platforms.
The high industries witnessing the very best contribution from offline gross sales are FMCG & Retail (97%), Food & Beverage (95%), and Consumer Durable & Electronics (93%).
Special Offers, At-Home Delivery Enabling Offline Retail:
Indian retailers are bringing one of the best of each worlds to buyers by integrating digital instruments with specialised in-retailer affords to encourage offline gross sales.
Offline methods
The high 5 methods utilized by offline retailers are: Specialised affords, reductions, utilizing immediate messaging apps to attach with prospects, doorstep supply, and a number of cost choices. 60% retailers have adopted digital funds at their shops for ease of cost and a problem-free shopping for expertise for his or her prospects.
Home supply
At-home supply stays a high precedence for buyers, with 60% offline retailers receiving buyer requests to start out dwelling supply providers.
Retailers have initiated free dwelling supply providers for his or her prospects, taking orders through telephone or via immediate messaging apps for merchandise obtainable at their bodily shops.
The high industries with the very best variety of dwelling supply requests embody Food & Beverage (73%), Healthcare (68%), Fashion & Lifestyle (63%), and FMCG & Retail (55%).
Ability to Touch and Feel the Product, Indian Family-Oriented Value System Drives Indians to Shop at Offline Stores:
Physical shops stay the preferred mode of buying Indians regardless of the proliferation of on-line marketplaces. The means to the touch and really feel the product is the highest purpose for the recognition of in-retailer buying. 54% desire offline buying because of the assured authenticity and high quality of merchandise.
Approximately 50% respondents are loyal to their native shops, with a number of generations of a household typically buying from the identical retailer resulting in belief and familiarity. 35% Indians store from their native retailer to encourage and help small companies.
Popular segments for in-retailer buying in India embody Consumer Durable & Electronics, Food & Beverage, Fashion & Lifestyle, and Healthcare.
‘Shopping Only Online’ occupies a minimal share of India’s buying channels:
Only 10% Indian buyers are buying completely on on-line promoting platforms. This contribution additional varies by era. While solely 14% of the Gen Z inhabitants outlets solely on-line, this quantity falls to solely 5% for the Gen X inhabitants.
11% of millennials store solely on-line. Online buying sees a spike throughout flash gross sales and instances when larger reductions are provided by e-commerce platforms, with practically 35% of buyers preferring on-line buying solely throughout flash gross sales.
Festive Season Increases Offline Retail Sales:
Festive buying is a household affair in India when all family members throughout age teams get collectively to rejoice.
More than 70% Indian buyers worth a household buying expertise in a bodily retailer.
Indian retailers see the utmost footfall at their shops throughout particular events resembling festivals. During this time, they ramp up product stock, introduce differentiated affords and aggressively promote their companies.
Industry segments that see most offline gross sales in the course of the festive season embody FMCG & Retail (80%), Consumer Durables & Electronics (79%) and Fashion & Lifestyle (75%).
Click & Mortar – Path Ahead for Indian Retail:
Almost 60% retailers wish to deal with bodily shops with help from digital instruments sooner or later to drive in-retailer gross sales. The relevance of offline retail is obvious from the research with one in two retailers receiving requests from their prospects to duplicate merchandise based mostly on on-line reference photos.
Fashion & Lifestyle and Consumer Durable & Electronics retailers obtain nearly all of such requests.
Online promoting is but to choose up amongst India’s retailers, with 46% saying that they’re on the nascent stage of understanding the workings of on-line retail. 16% retailers are but to search out digitally savvy workers to make use of on-line promoting platforms.
The research revealed that 7 in 10 retailers plan to open new shops to strengthen their bodily presence. This enlargement and progress of offline retail shall be facilitated by digital constructing blocks together with digital funds, digital order fulfilment, digital in-retailer operations.
