60% of Indian retailers see technology as key to competitiveness: PwC India Report
PwC India has launched a report titled,The Retail
Reinvention Paradigm: How brands could up their game," at the Retailers Association of
India’s (RAI) Retail Leadership Summit in Mumbai today. According to the report, 60% of brick-and-
mortar retailers surveyed believe that improved access to technology can empower them to enhance
their competitiveness in this evolving market. The report emphasises the use of AI-driven analytics for
personalised experiences, mobile apps for consumer engagement, and modern POS (Point of Sale)
systems for efficiency.
The influence of e-commerce and quick commerce is increasingly reshaping Indian retail, with 34% of
traditional retailers surveyed reporting negative impacts from online shopping. Traditional retailers
are adapting to such a transformational market change by offering credit options, free home delivery
and personalised services, while also looking at omnichannel strategies to stay competitive.
However, our research shows that consumers want the best of both worlds seamless digital
convenience and the in-store experience. While online shopping dominates in personal product
categories like apparel and beauty (preferred by over 50% of consumers), in-store purchases remain
strong for family-related products such as fresh produce and home furnishings (preferred by 36%),
highlighting the need for tactile engagement.
In the light of these findings, the report introduces a comprehensive retail reinvention framework,
guiding retailers to blend traditional and modern approaches. By embracing technology and focusing
on experiential retail, retailers can create immersive consumer experiences that drive sustained
growth. The framework emphasises the integration of AI-driven analytics and mobile applications to
enhance customer interactions and provide valuable insights into consumer behaviour. Additionally, it
encourages retailers to leverage geographic nuances and consumer utility profiles to tailor their
strategies effectively. By aligning channel actions with consumer preferences, retailers can optimise
resource allocation and remain relevant in a rapidly evolving market landscape. This strategic
approach not only enhances competitiveness but also fosters long-term customer loyalty and
satisfaction.
Ravi Kapoor, Partner and Leader - Retail and Consumer, PwC India, emphasised the
importance of integrating innovation with localised strategies.Indian retailers need to navigate the
complexities of e-commerce balancing online and offline channels, optimising supply chains, and
enhancing customer experience. 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.
Raghav Narsalay, Partner and Leader - Research and Insights, PwC India, added, “Our
research shows how dynamic the Indian retail landscape is and how the forces of technology combined
with evolving consumer preferences across metros, Tier 1, Tier 2, and Tier 3 markets are driving
retailers to innovate to maintain their competitive advantage. This requires a proactive approach
towards embracing digital tools and fostering a culture of continuous improvement”.
Sanjay Dawar, Partner and Leader- One Consulting, PwC India, said, “Brands must adapt
to shifting consumer preferences by using technology and tailored channel strategies to maximise
relevance and impact. PwC’s Retail Reinvention Framework helps businesses navigate these
complexities, ensuring optimal resource allocation, strategic decision-making, and the ability to
anticipate market trends and consumer demands effectively".
Key insights from the report:
1. Omnichannel retail success is greater than the sum of its parts: Retailers are
increasingly recognising the power of blending online and offline experiences, with 60% perceiving
technology as a tool that can provide a key competitive edge. Despite this, 53% of retail stores are
yet to adopt tech solutions. Nearly 45% consumers prefer a combination of both online and offline
channels for shopping.
2. Quick Commerce is more common in metros and Tier 1 cities than in Tier 2 and Tier
3 cities: Quick commerce is reshaping retail dynamics in metros and Tier 1 cities, with 42% of
metro and Tier 1 consumers prioritising rapid delivery for urgent needs. Over 65% of consumers in
these areas rely on quick commerce for essentials like packaged foods. This trend has reduced foot
traffic to physical stores by 28%, highlighting the shift towards convenience and immediacy.
3. Offline retailers strategise to thrive in digital retail landscape: Traditional retailers face
challenges from the digital shift, with 34% reporting negative impacts from online shopping. To
stay competitive, 64% are self-funding marketing efforts, emphasising the need for a strategic
roadmap. Fairer logistics policies are perceived as crucial for equitable operations, ensuring
retailers can navigate the evolving digital landscape effectively.
4. Offline retailers and consumers are reinventing themselves in different ways in the
omnichannel evolution journey: In response to the evolving retail environment, 21% of
retailers are exploring the concept of dark stores to streamline operations and cut costs, while 10%
are already operating them. Consumers are increasingly prioritising flexible return policies (40%),
efficient after-sales service (39%), and better payment options (39%). This is particularly
important in Tier 2 and 3 cities, where 41% and 39% of consumers, respectively, emphasise the
importance of robust after-sales support.
