As
the retail landscape in India continues to evolve, it is important for
businesses to find a balance between online and offline retail. COVID-19
pandemic had a significant impact on the offline retail industry as consumers
turned to online shopping out of necessity. Many offline retailers were not
prepared for such shift in buying behaviour.
Some
of the segments like Restaurants, QSR, Entertainment etc were severely impacted
and many businesses were not able to survive. Those who survived, learnt
important lessons and embraced new trends like use of technology, omnichannel
business model, agile supply chain, investment in people etc.
Offline
retailers in India face several challenges, including intense competition from
e-commerce companies, high operating costs, and the need to adapt to changing
consumer preferences.
Along
with the rise of e-commerce and shifts in ever-changing consumer behavior, it
is more important than ever to ensure that the supply chain is efficient,
flexible, and able to adapt to changing market conditions. Nearly 75% of
retailers struggle to integrate their supply chain and infrastructure across
channels, leading to inefficiencies and lost sales.
Changing
priorities of the labor force is also coming across as a major challenge for
the entire retail sector, but with the right strategies and investments,
retailers can overcome it and continue to thrive.
In
order to overcome the challenges, retailers must invest in modern technology,
foster collaboration between departments, and continuously assess and optimize
their supply chain and infrastructure. This can be a daunting task, but the
benefits are significant.
In
the following sections, we have discussed the retail landscape – key challenges
and considerations that lie ahead for offline retailers.
