Why The Future Of Indian Retail Is Omnichannel

The convergence of quick commerce and convenience is transforming the consumption patterns of Indians and triggering shifts in unorganised product categories. 

The subject came about in a panel discussion at the seventh edition of Inc42’s D2C & Retail Summit in Gurugram on “What Do India’s Shopping Patterns Reveal About The Next Growth Wave?”. 

Kamal Lochan Das, business head, PhonePe Payment Gateway; Akash Agrawalla, cofounder of D2C spice brand ZOFF Foods; and Ayush Bansal, director at legacy footwear major Liberty Shoes participated in the discussion that was moderated by Karan Saraf of PwC India. 

Quick commerce platforms are essentially becoming the modern, organised replacements for local kirana stores, Agrawalla of ZOFF Foods said. 

The rise of convenience has also been powered by a shift in how consumers are interpreting payments, Das of PhonePe noted. Consumers are shifting from merely paying for basic needs from a utility perspective to exercising discretionary spending, he said. 

However, Liberty Shoes’ Bansal threw in a different perspective. He noted that while consumers are ready to spend more, it’s only on products that provide true value to the customer. 

“Premiumisation for us works by not only increasing the price of a product in the mass market but rather than identifying – can we get a school shoe which has great comfort? Can we get a school shoe which has a GPS tracker? Can we have a school shoe which is lace free?” Bansal said. 

He added that while quick commerce has transformed the way people shop in many categories, many products still require an offline touch. 

“Today, consumers discover products on Instagram, compare prices on ecommerce, try them in stores and buy on D2C websites. It’s a multi behavior system that exists today. Therefore, brands need to be present across these touchpoints to serve different consumer behaviours,” noted Bansal. 

The takeaway of the panel was that India’s consumption is becoming increasingly convenience-led, but not every category will move entirely online. Brands will need to combine quick commerce, ecommerce, D2C and offline retail to meet consumers across different shopping journeys.

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