Offline Retailers – 'The Need for an Omnichannel Presence'
Traditional retailers over the last few years have understood the importance of an omnichannel presence. This is primarily for the purpose of retaining repeat customers and maintaining their loyalty towards a particular brand as brand loyalty has gone all haywire post the nation wide advent of E-Commerce, especially among the ones with a higher disposable income. Customers have gradually shifted base from offline to online with regards to purchasing over the past few years.
Hence, sticking to traditional forms of retail is not the wisest option for a retailer anymore. Big conglomerates of India who were basically traditional retailers like Tata Group, Aditya Birla Retail Ltd, Future Group, etc. have now shifted focus towards an online presence. The most urgency could be seen among retailers dealing with apparel & footwear, departmental stores and grocery.
Consumers – 'The Digital Influence'
Diwali is always a good time for the retailers. Thankfully the customers are not totally content with crackers and clothes. To them, Diwali is about a hell lot more. The need for an online presence can be well determined by analysing the 2016 forecast for online retailers. But before analysing the Diwali estimations, its only fair to consider these startling statistics.
The above graph tells us the increasing rate of smartphone users in India from 2014 to 2019. The increase in rate is largely uniform in nature ranging from 21.2% in 2014 to 39% in 2019. Apart from this:
Indian Internet traffic is set to rise at a CAGR of 34% from 2015 to 2020 (CISCO Visual Networking Index)
The mobile data traffic is expected to reach 1.7 exabytes per month in 2020 growing from 149 petabytes per month in 2015.
In 2020, internet traffic will be 249 times the volume in 2005 growing at a CAGR of 33% year over year (CISCO India & SAARC)
Smartphones will account for 37% of all network connected devices in 2020 which is about (702.1 million devices)
Diwali 2016 – ' The Retail Forecast'
The above numbers are almost daunting. This is enough to justify the significance of having an omnichannel presence for a retailer today. If not, then an insight on what the online retailers have on their plate this Diwali will surely be enough.
According to a study by Factor Daily
This Diwali will be another cherishable period for online retailers as an estimated 61 million shoppers are expected to spend a whopping 12K Crore rupees online, which is about US $1.8 billion.
The diagram below states that the per capita expenditure in the top 7 metros is expected to be Rs 858 which is distinctively higher than the remaining cities where the expenditure varies between Rs 282 – Rs 407
(source: Factor Daily)
The primary enforcers of customer demand is expected to be generated from the cities of Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Pune
Mobile Phones & tablets, Apparels & Accessories and footwear make the top 3 categories respectively
The online retailers are all set to have a cracking time during Diwali 2016. The above figures and data reflect the potential profit making scenario for the online retailers. The consumers have now gone digital. Traditional Retail should follow suit without wasting anymore time. An omnichannel presence is a must.