positioning e-commerce as a central component of consumer shopping habits. Initially driven by attractive discounts, this shift has evolved into a lasting preference for online shopping, boosting e-commerce's share of India's retail market from 4.7 percent in 2019 to 7.1 percent in 2023, with expectations to surpass 10 percent by mid-2024.
A crucial factor in this transformation is the rise of omni-channel retailing, now essential for brands adapting to the new consumer landscape. This approach seamlessly integrates physical stores with digital platforms and mobile apps, creating a cohesive shopping experience. Initially developed abroad, omni-channel practices were adopted in India in 2017, with major cities like Delhi, Mumbai, and Bengaluru leading the way through brands like Levi’s and USPA.
Statistics highlight the effectiveness of this strategy: Over 70 percent of Indian consumers research online before making offline purchases, indicating a strong preference for integrated shopping experiences. Brands like Fabindia, Lenskart, and Nykaa have succeeded by combining online convenience with in-store engagement, achieving high conversion rates and customer loyalty.
Despite the surge in e-commerce, physical stores remain vital for building trust and enhancing brand prestige. In 2023, a 60 percent increase in direct-to-consumer brands opening physical outlets underscores their continued importance.
Navigating this evolving landscape requires efficient inventory management, innovative fulfillment options like click-and-collect services, and personalized customer interactions. By embracing omni-channel strategies, brands can not only meet but exceed the expectations of today's Indian consumers, ensuring sustained growth in this dynamic retail environment.