According to a study by NeoGrowth, more than 80% of retailers don’t find eCommerce as a threat.
While 18% reported a decline in sales due to online retail among the surveyed retailers, a significant majority of 82% stated that there is no effect on their business growth. In fact, many retailers accepted a boost in sales due to eCommerce.
The report further mentioned that the least affected sectors by eCommerce are consumer durables and electronics, food and beverage, and fashion and lifestyle. NeoGrowth has conducted the study across 25 cities in India and approximately 3,000 retailers and shoppers were part of it.
The report also stated that 90% of respondents claimed that more than half of their sales are produced from offline channels. Consumer durables and electronics, food and beverage, and fast moving consumer goods (FMCG) were highlighted as key contributions to offline sales.
Interestingly, from the shopper’s point of view, physical stores continued to dominate as the preferred mode of shopping, despite the rapid growth of eCommerce.
The study showed that only 10% of shoppers stick to online shopping alone. Among these shoppers, 14% are Gen Z, 5% are Gen X, and 11% are known to be millennials.
The report noted that 35% of shoppers opt for online shopping specifically during flash sales, attracted by the prospect of higher discounts.
On the other hand, 54% of shoppers favor offline shopping, citing the assurance of product authenticity and quality. The survey also revealed that half of the respondents remain loyal to their local stores, and over 70% of shoppers highly value the family shopping experience in physical stores, particularly during festive seasons.
Driven by strong consumer demand, 7 out of 10 retailers expressed plans to open new stores, enhancing their physical presence. This expansion in offline retail is expected to be powered by digital tools like digital payments, digital order fulfillment, and improved in-store operations.