05 March 2025, Mumbai
A recent report by PwC India, titled "The Retail Reinvention Paradigm: How Brands Could Up Their Game", reveals that 60% of brick-and-mortar retailers believe embracing technology is essential to maintain competitiveness in the evolving market. The report, unveiled recently at the Retailers Association of India's (RAI) Retail Leadership Summit in Mumbai, surveyed 120 retailers across nine categories.
Slow digital adoption among retailers
Despite the growing importance of digital integration, the study found that 53% of retail stores have yet to adopt technological solutions. This signals a significant gap between consumer expectations and retailers' digital capabilities. Ravi Kapoor, Partner and Leader - Retail and Consumer at PwC India, emphasized the importance of integrating innovation with localized strategies. He stated that the future of retail belongs to those who seamlessly combine these elements to drive sustainable growth.
Omnichannel shopping on the rise
Consumer preferences are shifting towards a blend of online and offline shopping experiences, with nearly 45% favoring this omnichannel approach. The report highlights that online shopping dominates personal product categories like apparel and beauty, while in-store purchases remain strong for family-related products such as fresh produce and home furnishings. The fashion and apparel sector, in particular, is witnessing rapid digital adoption, with consumers seeking seamless online-to-offline transitions for personalized shopping experiences.
Impact of Q-Commerce
The rise of quick commerce is particularly notable in metropolitan and Tier 1 cities, where 42% of consumers prioritize rapid delivery for urgent needs. Over 65% of consumers in these areas rely on quick commerce for essentials like packaged foods, leading to a 28% reduction in foot traffic to physical stores.
Adapting to changing consumer behavior
Traditional retailers are responding by offering credit options, free home delivery, and personalized services. Some are exploring the concept of dark stores to streamline operations, with 21% considering this approach and 10% already implementing it. The report introduces a comprehensive retail reinvention framework, guiding retailers to blend traditional and modern approaches.
The PwC India report underscores the need for retailers to proactively embrace digital tools and foster a culture of continuous improvement to maintain their competitive advantage.
