According to a study, the majority of Indian retailers who were surveyed do not perceive e-commerce as a threat to their business operations. Only 18 percent of respondents reported that their sales had been affected by online selling platforms. The industries with the most significant reliance on offline sales include FMCG & Retail (97 percent), Food & Beverage (95 percent), and Consumer Durable & Electronics (93 percent).
NowGrowth, a digital lender in India with a focus on MSMEs, conducted a survey involving over 3,000 Indian retailers and shoppers in more than 25 major cities. The findings revealed that home delivery continues to be a key concern for shoppers, as 60 percent of offline retailers reported receiving customer requests to initiate home delivery services.
Despite the widespread growth of online marketplaces, physical stores remain the preferred shopping method for Indians.
The primary factor driving the popularity of in-store shopping is the tangible experience of touching and feeling the products. Approximately 54 percent of people favor offline shopping because it provides a sense of assurance regarding the authenticity and quality of the products.
Roughly 50 percent of the respondents exhibit loyalty to their neighborhood stores, with multiple generations within a family frequently patronizing the same retailer, which fosters trust and familiarity. Additionally, 35 percent of Indians choose to shop at their local retailers to promote and support small businesses.
Over 70 percent of Indian shoppers highly value the family shopping experience in brick-and-mortar stores, and Indian retailers witness the highest foot traffic in their stores during special occasions, particularly festivals.
A mere 10 percent of Indian shoppers are exclusively making their purchases on online selling platforms.
This trend varies by generation, with 14 percent of Gen Z individuals shopping exclusively online. In contrast, this figure drops to just 5 percent for the Gen X population, and 11 percent of millennials make purchases exclusively through online channels.
Online shopping experiences a surge in activity during flash sales and periods when e-commerce platforms offer substantial discounts, with nearly 35 percent of shoppers opting for online shopping exclusively during these occasions.
Around 60 percent of retailers aim to prioritize physical stores in the future, leveraging digital tools to enhance in-store sales. Additionally, 7 out of 10 retailers are planning to open new stores as part of their strategy to bolster their physical presence.
