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  • Offline retail dominates India despite online marketplaces: report
  • Only 10% of Indian shoppers exclusively shop online

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Online vs Offline shopping: In-person retail dominates India says report

Online selling is still in its infancy among Indian retailers, with 46% indicating they are in the early stages of understanding online retail

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      A recent report highlights the continued dominance of offline sales in India's retail landscape, with a whopping 90% of retailers generating over half of their sales through brick-and-mortar stores.

      This trend is particularly pronounced in key sectors such as FMCG & retail, food & beverages, and consumer durables & electronics.

      The NeoGrowth Study report reveals that e-commerce has had the least impact on three sectors: consumer durables & electronics, food & beverage, and fashion & lifestyle. What's remarkable is that 82% of offline retailers have seen consistent or increased sales, with a mere 12% reporting a sales decline due to online marketplaces.

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      Reasons Behind Popularity of In-Store Shopping

      The report identifies various reasons for the appeal of in-store shopping, including the ability to physically interact with products, ensuring product authenticity and quality (cited by 54% of respondents), loyalty to local stores, and a commitment to supporting small businesses (35% of Indian shoppers).

      Retailers Encouraging In-Store Purchases

      To adapt to changing times, MSME retailers have adopted strategies to drive in-store sales, such as offering discounts, providing doorstep delivery, and utilizing instant messaging apps for customer engagement. Notably, 43% of retailers offer discounts or combo deals to boost sales, while 34% provide free doorstep delivery. Approximately 60% of retailers have integrated digital payments for a seamless customer experience.

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      Shoppers' Preference for In-Store Shopping

      Only 10% of Indian shoppers exclusively shop online, with online sales spiking during flash sales, favored by 35% of shoppers. In-store shopping remains popular due to its emphasis on quality, store familiarity, and support for local businesses. Over 70% of Indian shoppers value the family shopping experience, with peak foot traffic occurring during special occasions and festivals.

      Online Selling Trends

      Online selling is still in its infancy among Indian retailers, with 46% indicating they are in the early stages of understanding online retail. Additionally, 16% struggle to find digitally adept staff for online selling platforms.

      The study encompassed 3,000 Indian retailers and shoppers across 25+ cities and nine different industries.

      Bharat Jodo Yatra

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