Indian MSMEs Embrace Digital Future, But Offline Retail Holds Firm

A Zoho Corporation survey reveals a robust trend among Indian MSMEs towards digital adoption, with 82% of retailers eyeing digital channels. Despite this shift, many prefer offline methods. Businesses face challenges like logistics and cost but advance in AI, mobile tech, and social media engagement to enhance customer experiences.

In a recent survey by Zoho Corporation, it was found that a significant 82% of Indian micro and medium retailers are eager to explore digital sales channels, even though traditional offline marketplaces continue to hold sway. The study highlights a trend where 60% of MSMEs have adopted an omnichannel strategy, balancing both online and offline sales efforts, with 75% reporting an expanded customer base as a result.

The report underscores a transformative phase in India's retail sector, with a projected 60% of retailers planning to incorporate AI and ML technologies by 2030, and nearly half focusing on AI-powered personalization. However, the tactile nature of physical stores still attracts 71% of consumers who prefer to experience products before purchasing. Retailers note that personalized service and quick product access remain critical in the in-store shopping experience.

Challenges persist, particularly in maintaining a seamless omnichannel presence. Logistics issues plague 60% of retail MSMEs, with high operational costs troubling 57%. Retailers highlight fast delivery as a crucial demand, and many are leveraging mobile payments and digital tools to bridge the gap between online and offline shopping.

(With inputs from agencies.)