Development of Omnichannel in India: Retail Landscape, Drivers and Challenges

Abstract

This chapter presents the organised retail landscape in India with a special focus on the retail growth in online trade and the retailers’ journey from physical stores to e-commerce, multi-channel, and omnichannel retailing. It highlights the steps that need to be contemplated by retailers moving towards building an omnichannel strategy. The challenges that e-commerce players face while operating in this retail landscape are examined. The characteristics of Indian consumers and their behaviour are also discussed as they further define India’s markets and future growth opportunities. The business models that are evolving as retailers explore newer channel modalities to transform their businesses are discussed, along with the logistics innovations that facilitate such retail operations. There is also a comparison between the Indian and Chinese retail market. While India is a large market, with many potential customers, and a growing middle class that implies business opportunities, there also major challenges, such as access and quality of the transport infrastructure and logistics networks, as well as access to the rural population.