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Over 80 pc Indian retailers do not see e-commerce as a threat: Report, ET BrandEquity
A majority of Indian retailers surveyed do not feel e-commerce is threatening their operations, with only 18 per cent saying that their sales have been impacted by online selling platforms, claims a study. The top industries witnessing the highest contribution from offline sales are FMCG & Retail (97 per cent), Food & Beverage (95 per cent), and Consumer Durable & Electronics (93 per cent).
MSME-focused digital lender in India NowGrowth surveyed around 3,000 Indian retailers and shoppers across more than 25 top cities in India, wherein it was found that at-home delivery remains a top priority for shoppers, with 60 per cent of offline retailers receiving customer requests to start home delivery services.
Physical stores remain the most popular mode of shopping for Indians despite the proliferation of online marketplaces.
The ability to touch and feel the product is the top reason for the popularity of in-store shopping. Around 54 per cent prefer offline shopping due to the assured authenticity and quality of products.
Approximately half of the respondents are loyal to their local stores, with multiple generations of a family often shopping from the same retailer leading to trust and familiarity. 35 per cent of Indians shop from their local retailer to encourage and support small businesses.
More than 70 per cent of Indian shoppers value a family shopping experience in a physical store, with Indian retailers seeing the maximum footfall at their stores during special occasions such as festivals.
Only 10 per cent of Indian shoppers are shopping exclusively on online selling platforms.
This contribution further varies by generation with 14 per cent Gen Z population shopping only online, this number falling to only 5 per cent for the Gen X population, and 11 per cent of millennials making purchases only online.
Online shopping sees a spike during flash sales and times when higher discounts are offered by e-commerce platforms, with nearly 35 per cent of shoppers preferring online shopping only during flash sales.
Almost 60 per cent of retailers want to focus on physical stores with assistance from digital tools in the future to drive in-store sales with 7 in 10 retailers planning to open new stores to strengthen their physical presence.
The natural process is for a brick-and-mortar business to migrate to online (osmosis) but this new trend is a reverse osmosis where pressure seems to be mounting on e-commerce entities to drive profitable growth; not just growth. Unlike osmosis, reverse osmosis necessitates the use of energy to maintain pressure.
The research explored their purchase dispositions across domains like gifts, fashion, jewellery, automobiles, home décor, travel, entertainment… relative to their spending last year.
