According to a Deloitte report, the future of retail will be defined by a multi-channel approach
09 December 2021, Mumbai:
In a report, leading consulting firm Deloitte India stated that after the pandemic affected customer behaviors and caused a shift in-retailer offers, consumers and consumer goods companies in India are adopting a multi-channel approach.
According to the research 'ReWriting the Rules of New Retail,' the retail sector's future will be defined by a multi-channel approach in which online and physical channels will not only compete but also support one another.
In economies like India, the future of retail will be a mix of brick-and-mortar stores and online selling platforms, with both expected to flourish. Brands and retailers are recognizing the shift, and their strategies are being adjusted to reflect it. In particular, India's whole retail sector is valued at $883 billion, having tripled in the last decade. It currently employs 8% of the overall workforce, or 35 million people, and is predicted to produce 25 million additional employment by 2030.
The pandemic has resulted in long-term changes in consumer behavior. Although buyers returned to stores once the lockdowns were released, they are significantly more demanding when it comes to getting their hands on the things they want. This indicates that they are willing to switch platforms and shop across many channels.
As a result, retailers, particularly offline retailers, have had to adjust to the 'new normal,' developing new ways to engage with and reach their end customers, building new business models — including direct-to-consumer reach, and quickly enhancing their online presence while maintaining their offline stores and footprint, according to the report.
According to the report, "Retailers are addressing this quick shopping across numerous channels not only in stores but also upstream throughout the supply chain, which is undergoing a tremendous omnichannel transformation as well."
While it was previously thought that e-commerce would capture only a 5% to 6% share of overall retail sales, Rajat Wahi, Partner, Deloitte India, believes that by 2025, that percentage might be as high as 15%. It may play out differently for different categories, with fashion, gadgets, accessories, and books being more prominent online; but, scaling up online grocery will take time.
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