Is Going Offline the Next Step to Survival for Retailers ?
There is no doubt that India is the fastest growing e-commerce market. The competitive world of e - commerce is getting tougher with more and more companies looking for a viable model to survive in the market. E-tailers are now realizing that the online to offline strategy works to capture the audience which still likes to visit a store to buy any product.
Companies like Yepme and Faballey have started this online to offline trend, but they did not succeed in carving out their own niche market in the country. It’s true that the Indian e-commerce market has massive potential, but that doesn’t mean it’s going to be an easy way to the market. The recent reports suggest e-commerce major Flipkart and its acquisition of online fashion company are going to start offline services in order to raise funds and increase profit.
Given below are the retailers that are integrating their offline stores with their online e-commerce businesses to drive sales and revenues.
Flipkart’s Myntra Following the Offline Model:
Whether a business model is small or large, your presence should be constant everywhere with possible customers – online and offline. Flipkart-owned Myntra will be making an entry into the offline segment with the launch of the first offline store in India. In order to differentiate its in-house brand from the other online brands, Myntra is setting up its shops offline. The first store has been launched in Indiranagar, Bengaluru under the brand name Roadster. The company is looking to experiment in the offline segment for the next 8-12 months by increasing in-house brands visibility through their stores. Myntra lost large customer base to its competitors after it went app-only in 2015.
It would be interesting to see if this new model will work in their favour to increase sales and revenue.
Lenskart Betting Big on the Offline Medium:
Online retailers are aiming to ramp up their sales through offline presence in the coming years. Lenskart, being the first brand to venture in the offline market has truly succeeded in the offline world. Besides having an online presence, Ratan Tata-backed eyewear brand has opened many stores through franchise model to boost their offline sales. Moreover, the firm gets a major portion of its revenue from its more than 250 stores running in 90 cities. The company is also setting up 20 brick-and-mortar stores a month to strengthen its stores.
Online Companies Going Offline to Sell Smartphones:
Chinese smartphone maker Xiaomi has decided to go offline with its Redmi Note 4 model. The reason behind this decision is the growing demand of the brand in the offline segment. Recently, Xiaomi has also sold over 1 million units of Redmi Note 4 online. With this move, the company will compete with other major brands like Oppo, Vivo and Samsung by capturing the offline market. The smartphone will be available offline on pre-order from 14 to 17 March in retail stores.
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