More than 80 per cent of retailers in India do not perceive e-commerce as a threat to traditional retail, according to a survey conducted by NeoGrowth. The study covered around 3,000 retailers and shoppers across 25 cities in the country.
According to the report, sales of only 18 per cent of the respondents were affected by online retail. A substantial majority, constituting 82 per cent of retailers, reported no adverse impact on their business growth. Interestingly, some even noted an increase in sales due to e-commerce platforms.
The study identified specific sectors, including consumer durables and electronics, food and beverage, and fashion and lifestyle, as the least affected by the rise of online retail.
From the consumers’ standpoint, physical stores remained the preferred mode of shopping despite the surge in e-commerce activities.
The study revealed that only 10 per cent of consumers exclusively shopped online, with GenZ, GenX, and millennials making up 14 per cent, 5 per cent, and 11 per cent of online-exclusive shoppers, respectively.
The research showed that 35 per cent of shoppers opted for online shopping during flash sales, primarily due to higher discounts. In contrast, 54 per cent of shoppers favoured offline shopping due to the assured authenticity and quality of products.
Some 50 per cent of respondents expressed loyalty to their local stores, emphasising the value of the traditional shopping experience while more than 70 per cent of shoppers cherished the family shopping experience, particularly during festive seasons, in physical stores.
