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Ravi Capoor

Former CEO, IBEF

Ravi Capoor

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Moving from offline to online retail

Ravi Capoor, Former CEO, IBEF

Jul 07, 2015 15:20

The phenomenal growth registered in ecommerce industry in India has not only given rise to a plethora of first generation startups but has also forced a lot of offline retailers to move online. In fact, many offline retailers have launch dedicated online stores in order to adapt to the changing consumer behaviour. While the shift from offline to online has been across categories, some segments like consumer durables, apparels, FMCG and footwear have seen a large number of players launching dedicated online stores. According to a report released by UBS Securities India Pvt Ltd in April 2015, categories like consumer durables, apparel and footwear are showing a high online adoption rate, accounting for nearly two-thirds of the US$ 4.5 billion online retail market in the country. It is expected to further increase to four-fifths of the overall e-tail market by 2020, with the market size touching US$ 51.6 billion. 
 
Companies like Croma Retail, Shoppers’ Stop, Next Retail, Puma, Lenovo, HP, Madura Fashion & Lifestyle ( with brands like Louis Philippe, Van Heusen, Allen Solly, Peter England and People) etc have already launched their dedicated ecommerce stores in India. In addition, giants like Big Bazaar, Reliance Fresh are expected to come up with dedicated channels for consumers for shopping online in coming few months. The enhanced focus on online retail from these companies is not only expected to be an additional brand recall point for the consumer but also to open an additional revenue channel. For instance, fashion retailer Shoppers Stop is expecting 15 per cent revenue through its digital touch points by 2020.
 
According to a recent report by Deloitte, digital currently influences 21 per cent (Rs 60,000 crore, of the over Rs 2.8 trillion) in-store organised retail sales in India. With an enhanced focus on this medium, companies are expected to benefit from the rising consumer acceptability towards online retail. In fact, a large number of brick and mortar retailers are expected to transform into omni-channel retailers to adapt to the changing times. 

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