The Future of Brick and

Mortar Retail in India

Ashita Panda
 Present Scenario of Indian Retail

• The overall Indian retail market is valued at $770 million.

• Total organized retail is <10%, which is very much on the lower side, when compared
to nations like the USA, UK and Germany which are >80% and China, Brazil and
Indonesia at >20-30%.
• India’s total internet users are estimated to be around 450 million.
• They’re project to go upto 650-700 million by 2021.
• Online shoppers in India are expected to reach 220 million by 2025. Average online
retail spending in India was US$ 224 per user in 2017.
• The online retail spend is expected to reach $50-51 billion by 2021.
 The Case of Brick and Mortar Retail

• Stores have always had a huge advantage over online retail, the sensory dimension.
The store makes it possible for consumers to see, test, smell and touch the product and
this is a very important shopping experience that can never be replaced.

• It is now imperative for brick and mortar stores to work in tandem with the online
medium, rather than act as competitors.

• Even with the rise of virtual reality retailing, the physical store will still play a crucial
role in the shopping habits of the consumer.
 How retail stores have evolved worldwide

ALIBABA’s HEMA
NIKE
Here, you can use your mobile phone to scan a
Nike’s new flagship experience on Fifth Avenue
barcode on a pear, for example, and see detailed
in New York, called Nike House of Innovation
product information (farm of origin, sugar content,
000 is packed with new customer experiences
customer reviews, etc.) on a screen above the
such as "Scan to Try," where you can use your
produce section. You must have the retailer’s
phone to reserve models and sizes to try on. The
smartphone app installed to even get into the store,
selected styles will be waiting for you in a
because you’re going to use that app to scan your
designated store locker, which you unlock with
own purchases and complete the transaction
your phone.
without ever getting in a checkout line.
 How India can avoid a Retailpocalypse
• Use Online-to-offline commerce in order to find consumers online and brings them into the
real world to make purchases in physical stores. One aspect of the newer O2O initiatives is
the ability to pay online and then pick up a product in a physical location.
• The development of responsible consumption. This trend is projected to spread across all
sectors, and Indian brands must be ready for this new expectation of customers.
• The "new retail" or hybrid business between physical and digital experience. There won’t be
a barrier for the customer, who chooses at any time its omnichannel purchase mode (store
app, payment without cashing, etcetera)
• Equipping sales associates with mobile devices to review a shopper’s complete purchase
history and better assist them.
• Making retail buying an immersive experience, where it is no longer just the place of
purchase but it is now a place for living and experiencing.
Thank You!