60% of Indian retailers see tech as key to competitiveness: PwC India – Industry News

As much as 60% of brick-and-mortar retailers believe that improved access to technology can empower them to enhance their competitiveness in an evolving market, according to a report by PwC India. Despite this, 53% are yet to adopt digital solutions, even though nearly 45% of consumers are preferring an omnichannel approach.

The report, titled The Retail Reinvention Paradigm: How Brands Could Up Their Game, stresses the importance of using AI-driven analytics for personalised experiences, mobile apps for engaging consumers, and modern POS (Point of Sale) systems for improved efficiency.

“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,” says Ravi Kapoor, partner and leader, retail and consumer, PwC India.

The report also points out that e-commerce and quick commerce are reshaping Indian retail, with 34% of traditional retailers surveyed experiencing negative impacts from online shopping. In response, these retailers are offering credit options, free home delivery, and personalised services, while also exploring omnichannel strategies to stay relevant.

“Consumers want the best of both worlds — seamless digital convenience and the in-store experience,” the report states. It notes that while more than 50% of consumers prefer to shop online for personal products like apparel and beauty, in-store purchases remain popular for family-related products like fresh produce and home furnishings, which are preferred by 36% of shoppers. This underscores the continued importance of tactile engagement. 

The quick commerce sector is also booming, with 65% of metro and Tier 1 consumers relying on it for essentials, leading to a 28% decline in foot traffic at physical stores. Additionally, urgent needs are driving 42% of shoppers in these areas to quick commerce platforms.

In response, 64% of brick-and-mortar retailers are self-funding marketing efforts, although they continue to push for fairer logistics policies. To optimise operations, 21% of retailers are exploring dark stores, with 10% already implementing them. Meanwhile, shifting consumer expectations are reshaping the retail experience, as 40% prioritise flexible returns and 39% seek better after-sales support and payment options. This trend is particularly pronounced in Tier 2 and 3 cities, where 41% and 39% of consumers, respectively, emphasise the importance of strong post-purchase support.

To help retailers navigate these trends, the report introduces a retail reinvention framework that combines traditional and modern approaches. “By embracing technology and focusing on experiential retail, retailers can create immersive consumer experiences that drive sustained growth,” it notes. The framework further highlights the role of AI-driven analytics and mobile applications in enhancing customer interactions and gaining insights into consumer behaviour. It also encourages retailers to adapt their strategies by considering geographic nuances and consumer utility profiles.

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