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Impact of e-tailing on brick and mortar retail in India

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Rapid proliferation of high-speed Internet and Internet-enabled smart devices has contributed to the expansion of online at more than 40 percent growth in FY 2013-14, said a white paper by Colliers India.

E-commerce market to touch  bn in 2016, mobiles preferred medium: Study
In 2015, 78 per cent of shopping queries were made through mobile devices, compared to 46 per cent in 2013

In contrast, organised retail grew just 10-12 percent in the same period, while brick and mortar retail, as a whole, grew 6-7 percent. Capital value and retail rentals remained at in India’s top seven cities in FY 13-14. Overall absorption declined and only 1.6 million sq ft of retail space was absorbed in  India in 2014, down from 5.1 million sq ft in 2013. “The entry of a number of high prole participants into the online retail eld recently, along with an inux of private equity funds and investment from foreign venture capitalists, has resulted in a huge boost in funding that translated to tremendous sales growth in e-tail. Mall owners are currently, looking for a defense strategy to ensure the viability of their retail assets,” the papers added.

 

However, as they say there is always an opportunity with a threat, it is observed that retailers are increasingly integrating both oine and online presence through dierent combinations of product presentation, payment, and delivery modules for their stores and digital platforms. This whitepaper, by Colliers,  aims to bring out the recent trends in Brick and Mortar retail and online retail in India and aims to provide an insight into the future, along with a focus on the impact it had on real estate requirements.