Home Business Offline sales dominate in India’s retail industry: Report

Offline sales dominate in India’s retail industry: Report


Despite the proliferation of online marketplaces, offline sales have continued to dominate the Indian retail ecosystem, a report claimed.

In the country, 90% of retailers make more than half of their sales offline. The retailers selling FMCG & retail, food & beverages, and consumer durables & electronic products attract more offline shoppers as per the report.

According to the NeoGrowth Study report, the top-3 segments that have been least impacted by e-commerce platforms are –Consumer durable & electronic; food & beverage, and fashion & lifestyle. 82% of offline retailers admitted that their business growth is the same, or has seen an increment in sales. Only 12% of the retailers have witnessed a decline in sales due to the large number of online marketplaces, according to the report.


The ability to touch and feel the product is the top reason for the popularity of in-store shopping. 54% of the surveyed individuals prefer offline shopping due to the assured authenticity and quality of products. Besides, approximately 50% of respondents are loyal to their local stores, with multiple generations of a family often shopping from the same retailer leading to trust and familiarity. 35% of Indians shop from their local retailer to encourage and support small businesses.


To keep themselves abreast with times, MSME retailers are opting for several methods to encourage sales of their physical stores such as offering discounts and offers, providing doorstep delivery, and using instant messaging apps to connect with customers.

As many as 43% of the retailers are offering discounts or combo offers to maximize sales while 34% of offline retailers are offering free doorstep delivery.

60% of retailers have adopted digital payments at their stores for ease of payment and a hassle-free buying experience for their customers.


Only 10% of Indian shoppers are shopping exclusively on online selling platforms. Online shopping sees a spike during flash sales. 35% of shoppers prefer online shopping only during flash sales. The key drivers of in-store shopping for Indians are–offering quality and authenticity of products, familiarity with specific stores, and preference for supporting local businesses. More than 70% of Indian shoppers value a family shopping experience in a physical store. Indian retailers see the maximum footfall at their stores during special occasions such as festivals.


Online selling is yet to pick up among India’s retailers, with 46% saying that they are at the nascent stage of understanding the workings of online retail. 16% of retailers are yet to find digitally savvy staff to use online selling platforms.

The study revealed that 7 in 10 retailers plan to open new stores to strengthen their physical presence.

The study was focused on 3,000 Indian retailers and shoppers across 25 plus cities and nine industries.

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Updated: 02 Nov 2023, 01:14 PM IST

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