45% Indian consumers prefer a mix of online & offline channels: PwC

In the apparel sector, 39 per cent of consumers prefer offline shopping, with a stronger inclination in tier 2/3 cities (42 per cent) compared to metros (37 per cent). The trend is similar for fashion and accessories, where 43 per cent in tier 2/3 cities favour physical stores versus 36 per cent in metros. Even in the sports and fitness category, 34–36 per cent of shoppers still prioritise in-store engagement, as per the PwC report titles, ‘The Retail Reinvention Paradigm: How Brands Could Up Their Game.’

Meanwhile, quick commerce is reshaping retail dynamics in metros and Tier 1 cities, with 42 per cent of metro and Tier 1 consumers prioritising rapid delivery for urgent needs. Traditional retailers face challenges from the digital shift, with 34 per cent reporting negative impacts from online shopping.

To stay competitive, 64 per cent are self-funding marketing efforts, emphasising the need for a strategic roadmap. Fairer logistics policies are perceived as crucial for equitable operations, ensuring retailers can navigate the evolving digital landscape effectively.

In response to the evolving retail environment, 21 per cent of retailers are exploring the concept of dark stores to streamline operations and cut costs, while 10 per cent are already operating them. Consumers are increasingly prioritising flexible return policies (40 per cent), efficient after-sales service (39 per cent), and better payment options (39 per cent). This is particularly important in tier 2 and 3 cities, where 41 per cent and 39 per cent of consumers, respectively, emphasise the importance of robust after-sales support.

The report also emphasises the use of AI-driven analytics for personalised experiences, mobile apps for consumer engagement, and modern POS (Point of Sale) systems for efficiency.

“Indian retailers need to navigate the complexities of e-commerce—balancing online and offline channels, optimising supply chains, and enhancing customer experience. The future of retail belongs to those who seamlessly integrate innovation with localised strategies, leveraging data analytics and consumer insights to tailor offerings and drive sustainable growth in a competitive market,” said Ravi Kapoor, partner and leader—Retail and Consumer, PwC India.

“Our research shows how dynamic the Indian retail landscape is and how the forces of technology combined with evolving consumer preferences across metros, Tier 1, Tier 2, and Tier 3 markets are driving retailers to innovate to maintain their competitive advantage. This requires a proactive approach towards embracing digital tools and fostering a culture of continuous improvement,” said Raghav Narsalay, partner and leader—Research and Insights, PwC India.

“Brands must adapt to shifting consumer preferences by using technology and tailored channel strategies to maximise relevance and impact. PwC’s Retail Reinvention Framework helps businesses navigate these complexities, ensuring optimal resource allocation, strategic decision-making, and the ability to anticipate market trends and consumer demands effectively,” said Sanjay Dawar, partner and leader—One Consulting, PwC India.

The survey conducted by PwC India focused on 120 retailers across nine categories. The retailers surveyed spanned metro and tier 1, tier 2 and tier 3 cities.

ALCHEMPro News Desk (SG)