Tech Transformation: Indian Retailers Adapt to E-commerce Challenges

As e-commerce reshapes Indian retail, brick-and-mortar stores are integrating technology and innovative strategies to stay competitive. According to a PwC India report, traditional retailers are leveraging digital tools and omnichannel approaches to blend in-store experiences with online convenience, aiming to enhance customer loyalty and sustained growth.

A new report by PwC India reveals that 60 per cent of traditional brick-and-mortar retailers believe enhanced access to technology is crucial for maintaining competitiveness in a market increasingly dominated by e-commerce and quick commerce. These digital forces are reshaping the landscape, with 34 per cent of surveyed retailers noting adverse effects from online shopping.

In response, retailers are adapting by offering credit options, free home delivery, and personalized services, while exploring omnichannel strategies to remain viable. Consumers, however, seek a blend of digital convenience and tactile in-store experiences, necessitating a balanced approach.

The report highlights that online shopping prevails in categories like apparel and beauty, preferred by over 50 per cent of consumers, whereas 36 per cent still prioritize in-store purchases for products such as fresh produce and home furnishings, underscoring the importance of experiential retail.

To address these trends, the report introduces a retail reinvention framework advocating for the integration of AI-driven analytics and mobile applications to enrich customer interaction and derive consumer insights. It suggests tailoring strategies based on geographic nuances and utility profiles to optimize resource allocation.

This strategic alignment with consumer preferences aims to bolster competitiveness and foster customer loyalty. As Ravi Kapoor, PwC India's Partner and Leader for Retail and Consumer, asserts, balancing online-offline channels and enhancing customer experience are essential for navigating the complexities of e-commerce.

Raghav Narsalay, Partner and Leader for Research and Insights, adds that technological advancements and shifting consumer preferences across diverse markets necessitate innovation to maintain competitive advantage. Meanwhile, Sanjay Dawar, Leader - One Consulting, insists on adapting brands to maximize impact through tailored strategies and technology.

(With inputs from agencies.)