In a conversation, Colonel Chandhoke, Managing Director and Chief Executive Officer of Victorinox India, and Naveen Malpani, Partner and Sector Leader – Consumer and Retail, Grant Thornton Bharat LLP, discuss the numerous factors that will shape the future of offline retail in India
The brick-and-mortar stores, also known as the traditional offline retail system, make up a sizable portion of the Indian retail sector since they enable customers to try the products in-person and evaluate the many appropriateness criteria prior to making a purchase. Through face-to-face contacts and quick service, it goes beyond the transactional nature of the online retail system to improve relationships with customers.
The size of the retail market in India is expected to grow to USD 2 trillion by 2032, a testament to the burgeoning consumer demand in the country. Despite the rise in online retail in the total organized market, India continues to be a dominant offline retail market. The contribution of online retail is expected to grow to 10.9 percent in the total retail market by 2024 compared to 4.7 percent in 2019, as per a report by Anarock and Retailers Association of India (RAI). Notably, offline retail will contribute to approximately 89.3 percent of the total Indian market by 2024. It is amply clear that offline retail is here to stay and continue to grow.
With the continuous upgradations and a widescale popularity gained in the recent times by the technological and e-commerce industry, there has been a significant impact on the consumer’s preferences. While the online retail market provides greater accessibility and variety, offline retail excels in better providing an overall customer satisfaction by offering personalization and addressing the concerns of the customers in real-time.
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