Even though 82% of smaller and medium-sized shops wish to use digital channels to increase sales, offline marketplaces continue to be their preferred channel, demonstrating their effectiveness.
Six out of ten MSMEs said they have implemented an omnichannel selling strategy, operating in both online and offline channels, with the majority (75%) stating this increases their reach and customer accessibility; 68% of retailers reported an equal revenue share from both retail channels, according to a survey report by the international technology company Zoho Corporation.
According to the survey, 82% of offline shops wish to go digital, with the marketplace being the most popular channel for sales.
The report’s conclusions indicate that the Indian retail industry is undergoing a significant transition, with 60% of companies aiming to implement AI and ML by 2030 in order to remain competitive and 44% placing their money on AI-powered customisation to improve their consumers’ shopping experiences.
The in-store retail experience is still valuable, even with the migration to the internet. Seventy-one% of companies report that before making a purchase, buyers prefer to touch and view things in-store.
Retailers say that the other main reasons why customers prefer an in-store experience are rapid product access (59%) and customised in-store service (66%). It’s interesting to note that almost half of retail MSMEs thinking about opening a physical location stated they would rather begin with pop-up shops because they are adaptable and affordable.
A few significant obstacles that retailers encounter in preserving a smooth omnichannel experience were also noted by the survey. Approximately 60% of retail MSMEs stated that they had problems with supply chain management and logistics, and 57% thought that operating costs for physical stores were excessive.
More than half of online merchants reported increased interest in same-day delivery, and 57% of shops cited faster delivery as the most important customer demand. Companies list competitive price (71%) and ease of use (82%) as the main reasons why people shop online.
In the meantime, technology is also transforming in-store encounters. Nearly 70% of respondents now accept mobile payments, according to the research, while others are implementing tablets for product browsing (66%), and kiosks for rapid ordering (50%).
Physical stores are now able to offer the convenience and interaction of online retailers thanks to features like digital reviews, online discounts, and AI-powered customisation.
Seventy-two% of firms cite social media as their major consumer touchpoint, followed by search engines (67%) and marketplaces (60%). This indicates that social media has become a crucial discovery and engagement channel for Indian merchants, according to the survey.
In addition to discoverability, social media platforms are being used by retailers as a major source of consumer interaction; 30% of offline shops and 61% of digital firms get customer feedback from these platforms.
