Customers pitch for physical retailing with a digital touch

‘Click & mortar’ seems to be the new mantra of the Indian retail industry. This proves that physical retailing is not at loggerheads with e-tailing and the sector is not going to do away with the traditional ‘brick & mortar’ or the physical outlet model. According to a recent study, more than 80 per cent of Indian retailers do not see e-commerce as a threat. Nearly 60 per cent of them want to focus on physical stores with assistance from digital tools to drive in-store sales. The relevance of offline retail is evident with one in two retailers receiving requests from their customers to replicate products based on online reference images. Retailers of fashion and lifestyle, consumer durables and electronics receive such requests, indicates the study by NeoGrowth, the MSME-focused non-deposit taking NBFC. It seems like online selling is yet to pick up among India’s retailers, with 46 per cent saying that they are at the nascent stage of understanding the nitty-gritty online retail. In fact, almost 16 per cent of them are yet to find digitally savvy staff to use online selling platforms. If this study is anything to go by, then seven in 10 retailers plan to open new stores to strengthen their physical presence. This expansion and growth of offline retail will be facilitated by digital building blocks, including digital payments, digital order fulfillment and digital in-store operations.

The top industries witnessing the highest contribution from offline sales are FMCG and retail (97 per cent), food and beverage (F&B) and consumer durables and electronics (93 per cent). Little wonder that with customer-centricity and competition from e-commerce in mind, retailers would be upgrading in-store experience with technology. Offline retail will continue to occupy a larger share of the Indian retail sector, only elevating itself to a ‘click and mortar’ model by adopting digital tools. Sector analysts pointed out that the top five strategies used by offline retailers include specialised offers, discounts, using instant messaging apps, door delivery and multiple payment options. Nearly 60 per cent retailers have adopted digital payments at their stores for ease of payment and a hassle-free buying experience for their customers. Home delivery remains the top priority for shoppers, with 60 per cent offline retailers receiving customer requests to start home delivery services. Retailers take orders on phone or through instant messaging apps for products available at their physical stores. Interestingly, the top industries with the highest number of home delivery requests include F&B (73 per cent), healthcare (68 per cent), fashion & lifestyle (63 per cent) and FMCG & retail (55 per cent). One must not forget that the retailers have stood the test of time and have always innovated to keep growing and enhancing customer experience. Their high business growth stands testimony to their creativity, persistence and long-term association with customers. It would, therefore, not be a wrong notion to believe that Indian shoppers have a strong preference for shopping at physical stores and would continue to enjoy the personalized approach of their local retailers, albeit with conveniences generated through use of digital tools.