PwC India survey found that up to 60% of physical merchants think that better access to technology will help them become more competitive in a changing market. Even though about 45% of customers prefer an omnichannel strategy, 53% have not yet adopted digital solutions.
The necessity of utilizing AI-driven data for individualized experiences, mobile applications for customer engagement, and contemporary POS (Point of Sale) systems for increased efficiency is emphasized in the paper, The Retail Reinvention Paradigm: How Brands Could Up Their Game.
“The future of retail belongs to those who seamlessly integrate innovation with localised strategies, leveraging data analytics and consumer insights to tailor offerings and drive sustainable growth in a competitive market,” says Ravi Kapoor, partner and leader, retail and consumer, PwC India.
According to the research, 34% of conventional merchants polled said that internet buying had a negative influence on their business, demonstrating how e-commerce and rapid commerce are changing Indian retail. In order to remain relevant, these businesses are responding by providing financing choices, free home delivery, and individualized services. They are also looking into omnichannel methods.
“Consumers want the best of both worlds — seamless digital convenience and the in-store experience,” the report states. According to the report, 36% of consumers prefer in-store purchases for family-related items like fresh vegetables and home furnishings, whereas over 50% of customers prefer to shop online for personal items like clothing and cosmetics. This emphasizes how crucial tactile engagement is still today.
With 65% of metro and Tier 1 customers depending on rapid commerce for necessities, the industry is also flourishing, resulting in a 28% drop in foot traffic at physical establishments. Furthermore, 42% of consumers in these regions are using rapid commerce platforms due to urgent necessities.
As a result, 64% of physical merchants finance their own marketing initiatives, despite their ongoing advocacy for more equitable logistical regulations. 10% of merchants have already implemented dark shops, while 21% are investigating them to improve operations. As 40% of consumers prioritize flexible returns and 39% look for improved after-sales service and payment alternatives, changing customer expectations are also changing the retail experience. In Tier 2 and Tier 3 cities, where 41% and 39% of consumers, respectively, stress the need of robust post-purchase assistance, this tendency is especially noticeable.
The research presents a retail reinvention framework that blends conventional and contemporary methods to assist shops in navigating these developments. “By embracing technology and focusing on experiential retail, retailers can create immersive consumer experiences that drive sustained growth,” it notes. The framework also emphasizes how mobile apps and AI-driven analytics may improve customer interactions and provide insights into consumer behavior. Additionally, it pushes merchants to modify their tactics by taking customer utility profiles and regional quirks into account.
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