India’s omnichannel sales will hit $55 billion by 2027
India’s omnichannel business could grow fivefold to $55 billion by 2027 from around $11 billion currently, according to the latest India Phygital Index 2022 report from IMAGES Group.
The report, jointly conducted by IMAGES Group in association with One Consulting Firm and GreenHonchos, features an in-depth study of more than 100 brands across various retail sectors, including food and grocery, restaurant and hospitality. , fashion and lifestyle, home improvement, beauty and wellness, and consumer electronics among various other segments.
“Currently, retailers derive approximately 13% of their sales or $11.2 billion from e-commerce/omnichannel. This has the potential to be multiplied by 5 to reach 55 billion dollars by 2027”, indicates the report published on Wednesday during the last edition of the Phygital Retail Convention (PRC) of the group IMAGES which is held in Mumbai from the 24 to August 25.
“From a retailer’s perspective, this can create a huge higher wallet share, get better sales as store inventory is exposed to customers nationwide, reduce the broken size problem, reduce inventory level by as retailers can refill from anywhere so safety stocks can be significantly reduced,” the report adds.
He also revealed that online sales account for about 13% of retailers’ retail revenue nationwide. While fashion and consumer electronics companies have taken the lead in this area, food and grocery operators are “lag behind” in this area.
Nonetheless, domestic retailers have made rapid progress in adapting omnichannel retailing in recent years, particularly buoyed by customers drawn to online shopping during the pandemic years.
“Only a few years ago it was considered a mere buzzword, with much skepticism,” the report said. “Today, more than 60% of national brands use some form of omnichannel. The rapid evolution of the ecosystem – SaaS-based technology service providers and logistics players – has contributed significantly to this,” he added.
The Phygital Index analyzes maturity on five metrics listed in the report to comprehensively capture omnichannel maturity status. “The overall industry score is 47.7%, which is a reasonably good score given that the real push to omnichannel has happened in the past two years,” the report released Wednesday said. “The industry has done very well to have the e-commerce share at 13% of total revenue, by providing rich features such as click and collect, ship from stores, etc., and making advancements in technology. We call this stage ‘Partially Connected Omnichannel’ because the customer journey is not always smooth, consistent or seamless across all channels,” he revealed.