Convergence is name of the game in the Indian retail arena with e-commerce companies with online presence increasingly opting for offline or brick-and-mortar presence while brick-and-mortar retailers opting for online presence as part of functioning as an Omnichannel brand.
According to India Retail Report 2017-18, Lenskart is set to raise its store count to over 400 outlets from the current level of 300 while lingerie brand Zivame plans to open 100 stores in the next three years.
These online retailers have realized the significance of serving customers through offline experience centres to ensure touch and feel about their products. Pepperfry has opened 16 such studios while fashion retailer Myntra plans to add more stores of Roadster in Mumbai and HRX in Delhi after their initial success.
On the other hand, offline established retailers like Shoppers Stop, Landmark are incurring huge expenditure on their web strategy in a bid to capture the online shopper.
So far, Shoppers Stop has invested around Rs 40 crore and intends to invest further Rs 20 crore in the coming months to derive 10 per cent revenue through its digital touch points by 2020.
Similarly, Future Group and Godrej Natures Basket too are following suit to increase revenue from the digital pie.
“We have stepped into an era where both e-tailing and brick and mortar are about to integrate seamlessly to create a satisfying shopping experience for the consumer. While technology is emerging as the binding element, large population of Indian consumers are still keen to touch, feel and experience the product before they buy,” said the report.
As per the report, India’s total retail market has grown at a CAGR of 14.7 per cent since 2014 to reach the size of Rs 55.31 lakh crore (US $864 billion) in 2016. The share of modern retail in this overall market is pegged at 13.7 per cent with a market size of Rs 7.56 lakh crore (US $118 billion) in value terms.