SUMMARY
Customers now prefer to do their research online and then buy in-store, or vice versa, rather than going to the closest store to do both
Several stakeholders have begun to adopt multichannel and omnichannel strategies by including new channels for customer interaction
Omnichannel retailing aids in the allocation of sales among different channels of retail and the creation of new sources of competition
The consumption pattern of people has evolved as the way of purchasing things has seen some major shifts in the last few decades. Customers now prefer to do their research online and then buy in-store, or vice versa, rather than going to the closest store to do both.
People now anticipate being able to make purchases whenever they want and from any location because of the growing acceptance and use of mobile technologies. Because of this, retailers now need to respond to consumers’ shifting purchasing habits. Nowadays, buyers don’t think it’s important to match the time or geographical preferences of the vendor.
For brands, there have been some significant shifts as well. Their operations are no longer just centred around a network of physical stores as was the case traditionally. They can now have distinct operations dispersed over the web space.
Challenges Faced By Brands To Establish Omnichannel Presence
Most brands find setting up their distribution network in India challenging due to their regional complexities and capital-intensive nature. They face roadblocks in scaling up their reach as it requires the management of a large on-ground team which is not something all young brands can invest in.
Similarly, a foray into the Indian market for any international brand is a herculean task, given diverse business complexities and lack of understanding of the culture and nuances to be able to establish a brand here.
The lack of an outlet could drive away a substantial proportion of customers, thus, Indian brands are working tirelessly to improve the customer experience across all channels.
They often find themselves in a tricky situation as, on the one hand, they work hard to adapt to the changing retail environment and are constantly testing new online technologies to help them satisfy the needs of their clients. On the other hand, they constantly look for ways to satisfy customers.
The Benefit Of Omnichannel Retail
Omnichannel retailing aids in the allocation of sales among different channels of retail and the creation of new sources of competition. It offers customers several benefits, including the ability to compare product details, prices and fulfilment options, access to a wider range of retail points and products, and the ability to research, purchase and receive products anytime and anywhere. This helps brands in attracting new customers and retain the current ones.
Omnichannel distribution platforms allow brands with a wider geographic reach to grow without incurring high fixed costs. As a result, their growth is accelerated, and they can concentrate on things like production and new product development, which is how distribution platforms help businesses expand.
Businesses can benefit from the new possibilities brought about by an increase in choice and convenience by utilising new channels to boost brand recognition and loyalty as well as by providing a smooth shopping experience across all channels.
Brand awareness can be boosted, and cross-channel sales can be improved by factors including having a large online presence and more searches. The awareness spread via websites, mobile apps, and online marketplaces has a positive effect on many sales channels in addition to online sales.
Addressing The Changing Landscape Of Retail
Looking at the landscape of business in India today, it is noticeable that the majority of new-age direct-to-customer (D2C) brands are digital first. However, the reality is that offline retail still accounts for a large share and holds massive potential. It is very important for businesses to understand the consumer’s needs and the dynamic consumer environment really well.
Large, well-known brands with wide market distribution have long dominated the Indian landscape, but in the last four to five years, the market has seen a significant shift as more and more modern D2C brands and items have entered the market via ecommerce. While many players support these companies through online channels, relatively few are familiar with the offline market, extensively dominated by general and modern trade, which can be challenging for new-age brands and products.
The Way Forward
The Indian retail industry has become one of the most dynamic and fast-growing sectors due to the introduction of numerous new businesses, which contribute to more than 10% of the nation’s GDP and about 8% of employment.
The retail industry, the application of the levers of the retail mix, and consumer behaviour have all been altered by the emergence of the Internet, mobile technology, and digital disruption. Several stakeholders have begun to adopt multichannel and omnichannel strategies by including new channels for customer interaction. Retailers are now focusing on how customers are affected by new technologies and how they transition between channels during their purchasing process.
Furthermore, creating a robust network of distributors and warehouses throughout the country is important. A deep understanding of the regional complexities in logistics and operations is required to unlock the potential and allow brands to scale exponentially. This is where omnichannel distribution platforms can come into the picture and help brands have a wider reach, explore new opportunities to increase their profit margin and overall build greater brand visibility in the market.
