Here's Why Brick and Mortar Stores are here to Stay and Sustain Indefinitely
India has seen the online versus offline conflict very closely
Indian retail saw some big changes in the last decade. When they reached a point of settlement and stability, there was a huge burst of online retailers that swarmed into the market and ever since then the war of online versus offline started while the watchdogs of the retail market decoded and analyzed this trend that changed the very foundation of trading.
A Slow Start but Hopeful Future
This year is crucial for the Indian retail sector because carpets for a new government are ready to roll out. Under the current government, the rules and regulations are a bit stringent but India is experiencing interesting times. Many foreign companies are trying to make an advent into the Indian market. Last year was a bit slow for the Indian retail committee, but as the year progressed, things started looking upbeat.
Many Indian and international stores went offline after years of online business including Pepperfry, Amazon etc.
Stay and Sustain
India has seen the online versus offline conflict very closely. Many startups and big companies went offline and embraced the brick and mortar formats last year. While the online setup gives comfort and convenience, something important to the millennials' way of life, the vitality of the brick and mortar format cannot be neglected either. So who is going to win the war?
Brick and mortar format is here to stay and sustain indefinitely. Initially, people were of the opinion that online businesses have become the way of life and they are eating up the businesses of the stores. But no matter how much digitalization may happen, this generation maybe tech savvy but they don't want to lose out on the comfort and convenience provided by the physical spaces. They want to be sure about where they are spending their money on the right products and if their money spent is helping them clinch a beneficial bargain.
So many online stores are transitioning to the physical format of trading but what is the success rate?
The success rate depends on a number of aspects. According to a research conducted by Poshly, in association with Bay Area Beauty Association (BABA), 65per cent of the women respondents bought makeup using the digital route whereas 72per cent respondents bought makeup from the brick-and-mortar setups.
Millennials are resorting to brick and mortar formats for products such as cosmetics, smartphones, T.V.s etc (where consumers need a personalized experience) whereas commodities books, shoes, accessories are better sold online.
Usher and Evolve
While the transition from online to offline is ushering a new dimension to the era of Indian commerce, it is still in a work-in-progress situation.
Scientific advancement and the support of technology are helping the retail to definitely boom. The dotcom bubble has also busted as companies have realized that both, e-commerce and physical spaces, have an equal and undivided role in generating sales, income or revenue for the company. If Amazon has awakened to this then why shouldn't the others?