Indian retail industry could disrupt competitor business

The disruption strategy adopted by online retail has resulted in successful sales of $5.3 billion. However, the numbers amounted to only about 0.5% of the overall retail trade.
Indian retail industry could disrupt competitor business

New Delhi: Indian retail industry is devising strategies which could potentially disrupt competitor business, says a PwC report.

The disruption strategy adopted by online retail has resulted in successful sales of $5.3 billion. However, the numbers amounted to only about 0.5% of the overall retail trade.

Their innovative marketing and aggressive expansion strategies invited growing interest from investors, both in India and outside.

The disruptive strategies driven by online retail companies had traditional retailers struggling to retain their leadership positions.

'The role of the physical store will continue to evolve into a sleeker, more customised and less transactional model. As online shopping continues to grow at the expense of store visits, the premium in the future will be on creating unique, brand-defining store experiences that keep customers coming back for more,'  Rachna Nath, Retail and Consumer leader, PwC India said.

The ‘online v/s. offline’ debate has given rise to an era of disruptive innovation, where retailers, both online and offline, are pulling out all stops to remain ahead in the competition, according to PwC report titled ‘Retailers and the Age of Disruption.

This year, the annual shopper’s survey recognises the ‘disruptors’ as driven by the confluence of consumer power, technology and social media.

Out of a total of 1,005 respondents surveyed as part of the PwC study from India, 48 to 50% of the respondents voted for features like lower prices with a clear slant towards online shopping.

On being polled regarding reasons for choosing their favourite retailer, respondents voted for good prices, trust, availability of products, good returns policy and fast and reliable deliveries in that order.

'Despite the success of e-commerce and e-tail companies, traditional large-format retailers have been persevering under the pressure of trying to match their competitors’ every step of the way by promoting discounts and adopting technologies to enhance in-store experiences. The role of the physical store will continue to evolve into a sleeker, more customised and less transactional model. As online shopping continues to grow at the expense of store visits, the premium in the future will be on creating unique, brand-defining store experiences that keep customers coming back for more,' Kumar Rajagopalan, CEO, Retailers Association of India said.

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