Leading consulting firm Deloitte India has said in a report that consumers as well as consumer goods companies in India are taking the multi-channel approach after the pandemic changed customer habits causing a shift in the offerings by retailers.
The report ‘ReWriting the Rules of New Retail’ said that the future of the retail sector will be defined by a multi-channel approach where online and offline channels will not only compete but also support each other.
The way forward for retail will be a blend of bricks-and-mortar stores with online selling platforms, with both likely to continue to grow in markets like India. Brands and retailers are recognising the transition and their strategies are being re-oriented to reflect this change.
Notably, India’s overall retail sector is pegged at US $ 883 billion, having grown three-fold in the past decade. As of now, it employs 8 per cent of the total workforce at 35 million; by 2030, it is expected to create 25 million new jobs.
The pandemic has brought about permanent shifts in consumer behaviour. Although once the lockdowns were lifted, shoppers returned to stores, yet they are far more demanding when it comes to accessing products of their choice. This means they are willing to shift to different platforms and shop across channels.
As a result, retailers, especially offline, have had to adapt to the ‘new normal’, developing alternate ways to engage with and reach their end customers, building new business models — including direct-to-consumer reach, enhancing their online presence quickly while still preserving their offline stores and footprint, it added.
The report reads, “This instant shopping across multiple channels is being addressed by retailers not only in stores but also upstream throughout the supply chain, which is undergoing massive omnichannel transformation as well.”
Rajat Wahi, Partner, Deloitte India, said that while in the past it was expected that e-commerce could corner only 5 per cent to 6 per cent share of overall retail trade, the number could be as high as 15 per cent by 2025. It could play out differently for different categories with apparel, electronics, accessories and books having higher salience online; online grocery will still take time to scale up.
