Experiential Retail And Quick Commerce Are Reshaping Retail Dynamics

Indian consumers today want the best of both worlds—seamless digital convenience and the in-store experience. While online shopping dominates in personal product categories like apparel and beauty (preferred by over 50 per cent of consumers), in-store purchases remain strong for family-related products such as fresh produce and home furnishings (preferred by 36 per cent), highlighting the need for tactile engagement. On their part, retailers are increasingly recognising the power of blending online and offline experiences, with 60 per cent perceiving technology as a tool that can provide a key competitive edge. Notwithstanding the statistics, nearly 53 per cent of retail stores are yet to adopt tech solutions. This is even as around 45 per cent consumers prefer a combination of both online and offline channels for shopping. A recent survey report by PwC India points out that an overwhelming 60 per cent of brick-and-mortar retailers from among the respondents believe that improved access to technology can empower them to enhance their competitiveness in this evolving market.

It also emphasises the use of AI-driven analytics for personalised experiences, mobile apps for consumer engagement, and modern POS (Point of Sale) systems for efficiency. Experts are of the view that the influence of e-commerce and quick commerce is increasingly reshaping Indian retail, with 34 per cent of traditional retailers reporting negative impacts due to online shopping. Traditional retailers are adapting that transformational market change by offering credit options, free home delivery and personalised services, while also looking at omni-channel strategies. The endeavour is to stay competitive in the highly competitive market. They also feel that Indian retailers need to navigate the complexities of e-commerce—balancing online and offline channels, optimising supply chains, and enhancing customer experience. The future of retail belongs to those who seamlessly integrate innovation with localised strategies, leveraging data analytics and consumer insights to tailor offerings and drive sustainable growth in a fast-accelerating market. Interestingly, by embracing technology and focusing on experiential retail, retailers can create immersive consumer experiences that drive sustained growth.

More than anything, one has to take into account how dynamic the Indian retail landscape is and how the forces of technology, combined with evolving consumer preferences across metros, Tier 1, Tier 2, and Tier 3 markets, are driving retailers to innovate in order to consolidate and maintain the competitive advantage that they enjoy. This requires a proactive approach towards embracing digital tools and fostering a culture of continuous improvement. When it comes to brands, they (brands) must adapt to shifting consumer preferences by using technology and tailored channel strategies to maximise relevance and impact. Quite significantly, quick commerce is reshaping retail dynamics in metros and Tier 1 cities, with 42 per cent of metro and Tier 1 consumers prioritising rapid delivery for urgent needs. Over 65 per cent of consumers in these areas rely on quick commerce for essentials like packaged foods. This trend has reduced the footfall in physical stores by almost 28 per cent, thereby highlighting the shift towards convenience and immediacy.