Despite the increasing trend of online shopping, NeoGrowth Study suggests offline shopping is still dominant
According to a report, offline sales still account for the majority of the Indian retail ecosystem, despite the growth of online marketplaces.
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Consumers trust offline purchases for few categories of Goods
Over 50% of sales for 90% of retailers in the nation come from offline sources. According to the report, offline shoppers are drawn to retailers that sell food and beverages, consumer durables and electronics, and fast-moving consumer goods.
The top three industries that have been least affected by e-commerce platforms are food and beverage, fashion and lifestyle, and consumer durable and electronic.
This is according to the NeoGrowth Study report. 82% of offline retailers acknowledged that either their sales have increased or their business growth has remained constant. The study states that just 12% of the retailers have seen a drop in sales as a result of the plethora of online marketplaces.
Factors driving growth of in-store shopping
The main factor driving the popularity of in-store shopping is the opportunity to handle and feel the merchandise. Because the authenticity and quality of the products are guaranteed, 54% of those surveyed stated that they prefer to shop offline. Furthermore, about half of the participants exhibit determination towards their neighborhood stores, with families frequently purchasing from the same merchant for several generations, fostering a sense of familiarity and trust. 35% of Indians purchase from their neighborhood store to promote and help small companies.
India's retailers have not yet embraced online selling; 46% of them admit that they are only now beginning to grasp how online retail operates. 16% of retailers still lack employees who are proficient with technology to use online selling platforms. According to the survey, seven out of ten retailers intend to increase their physical presence by opening new locations.
Three thousand Indian retailers and consumers from more than 25 cities and nine industries were the subject of the study.
Sellers strategies are responsible for increasing sales at physical stores
MSME retailers are utilizing a variety of strategies to boost sales at their physical stores in order to stay current with the times. These strategies include providing doorstep delivery, offering discounts and offers, and interacting with customers through instant messaging apps.
While 34% of offline retailers offer free doorstep delivery, up to 43% of retailers use discounts or combo offers to increase sales.
For their customers' convenience and a hassle-free shopping experience, 60% of retailers have implemented digital payments in their establishments.
Just 10% of Indian consumers only make purchases through online retailers. Flash sales see a spike in online shopping. 35% of consumers say they only like to shop online during flash sales. Offering high-quality and authentic products, familiarity with particular stores, and a preference for supporting small businesses are the main factors that encourage Indians to shop in-store.
Over 70% of Indian consumers think that a family-friendly in-store shopping experience is important. The busiest times of the year for Indian retailers are holidays and special occasions.
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