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Factors Driving the Adoption and Success of Omnichannel Retailing in India


Factors Driving the Adoption and Success of Omnichannel Retailing in India
Factors Driving the Adoption and Success of Omnichannel Retailing in India
March 27, 2024


India, with its burgeoning consumer market and rapidly expanding digital infrastructure, finds itself at a pivotal juncture in its retail sector evolution. The shift towards omnichannel retailing has never been more evident, resonating profoundly within the retail landscape across the nation. According to the State of the Connected Customer report published by Salesforce, 76% of retailers expect high revenue from their respective omnichannel platforms.

Omnichannel commerce is a strategy that provides a seamless shopping experience from the first touchpoint to the last, regardless of the channel the customer is using. This approach seamlessly integrates various channels, both online and offline, to provide customers with a cohesive shopping experience across all touchpoints. This shift is a significant response to market trends and a strategic imperative driven by the need to meet evolving consumer expectations.

According to the India Brand Equity Foundation report, India has firmly established itself as the third-largest eCommerce market worldwide, trailing behind only China and the United States. This surge is marked by remarkable growth, catapulting from $600 billion in 2015 to an astonishing $1 trillion by 2020. Noteworthy is India's distinction as the swiftest growing e-commerce market in Asia, boasting a remarkable Compound Annual Growth Rate (CAGR) of 44%, significantly surpassing the global average CAGR of 28%.

This blog delves into the growing significance of omnichannel retailing in India's retail landscape. Let’s explore the factors driving the adoption of omnichannel strategies among retailers, the challenges they face, and the opportunities that lie ahead.


India's Retail Revolution: Embracing Omnichannel for Unprecedented Growth


Evolution of Retailing in India

Historically, India has had a robust tradition of retailing, characterized by small, independent stores and local markets. However, with the advent of globalization and technological innovations, the retail landscape has undergone a profound transformation. The proliferation of the internet and the widespread adoption of smartphones have fueled the growth of e-commerce in India. Companies like Flipkart, Amazon, and Snapdeal have capitalized on this trend, offering consumers a convenient and hassle-free shopping experience through online platforms. Recognizing the evolving consumer behavior and preferences, retailers in India have been increasingly embracing an omnichannel approach. By seamlessly integrating their physical and digital channels, retailers aim to provide customers with a consistent and personalized shopping experience across various touchpoints. These touchpoints include physical stores, eCommerce websites and mobile applications, social media platforms, call centers, etc. The omnichannel concept revolves around breaking down the barriers between online and offline channels to create a cohesive and consistent experience. This has influenced retail brands of all sizes and domains to set up omnichannel retail stores within a brick-and-mortar location to further their reach, visibility, and impact with their users.

Omnichannel platforms redefine the shopping experience

Factors Driving the Adoption of Omnichannel Retailing in India

Omnichannel retailing in India is experiencing significant growth and success, driven by a multitude of factors. In research conducted by BigCommerce and Retail Dive in 2022, 46% of retail executives said they planned to increase their investment in omnichannel retailing moving forward. Let's delve into the key drivers behind this pivotal shift.

  1. Consumer Behavior Trends
    • Indian Consumers seek unified shopping experiences across online and offline channels, expecting consistent service, pricing, and product availability.
    • They are increasingly turning to digital platforms for their shopping needs, fueled by factors such as convenience, variety, and accessibility.
    • With the widespread adoption of smartphones and social media platforms, consumers are more connected than ever, driving retailers to leverage these channels for marketing, engagement, and sales.
    • Convenience has become more important than ever for consumers. Prior to the onset of the pandemic, a survey conducted by NRF revealed a significant shift in consumer preferences, with 83% of respondents emphasizing convenience as a priority in their shopping experiences.
  2. Infrastructure Development
    • Improvements in internet infrastructure, including broader coverage and faster speeds, have facilitated increased online activity, paving the way for omnichannel retailing to thrive.
    • The burgeoning e-commerce ecosystem in India, coupled with the development of robust logistics networks, has made it easier for retailers to integrate online and offline operations seamlessly.
    • Investments in technology and infrastructure have enabled retailers to synchronize their online and offline operations, offering consumers a cohesive shopping experience.
  3. Government Initiatives and Policies
    • Favorable government policies and regulations have encouraged investments in digital infrastructure and e-commerce, fostering an environment for omnichannel retailing to flourish.
    • Government initiatives such as Digital India aim to promote digital literacy, enhance connectivity, and foster the digital economy, all of which are instrumental in driving omnichannel adoption.
    • Various incentives and subsidies offered by the government incentivize retailers to embrace technology-driven solutions, including those related to omnichannel retailing.
  4. Competitive Landscape
    • Leading retailers in India are increasingly adopting omnichannel approaches to stay competitive, meeting consumer expectations for seamless shopping experiences.
    • The Omnichannel approach not only enhances engagement with the current customer base but also extends the reach into untapped markets, fostering growth and diversification.
    • The rise of omnichannel retailing has compelled traditional brick-and-mortar stores to innovate and adapt, integrating digital elements to remain relevant in the retail landscape.
    • SMEs are leveraging omnichannel strategies to expand their reach, access new markets, and compete with larger players, aided by advancements in technology and logistics.
  5. Technological Advancements
    • Data-driven insights and AI-powered algorithms enable retailers to personalize marketing efforts, optimize inventory management, and enhance the overall shopping experience across channels.
    • Cloud-based inventory management systems offer scalability, flexibility, and real-time visibility, facilitating seamless inventory synchronization across online and offline channels.
    • By controlling the brand’s data stream, businesses can better view their marketing efforts across different platforms such as websites, social media streams, retail stores, or even through customer engagement.
    • A comprehensive, integrated omnichannel strategy centralizes data from all sources and channels to determine the best ways to balance inventory, meet customers where they are, and provide the best service, wherever they shop.
  6. Consumer Trust and Security
    • As consumers share sensitive information online, ensuring robust data protection measures and compliance with privacy regulations is paramount to building trust and credibility.
    • Transparent communication regarding data handling practices, security measures, and return policies fosters consumer trust and confidence in omnichannel retailers.
    • Implementing secure payment gateways, encryption protocols, and fraud detection mechanisms enhances the security of online transactions, reassuring consumers.
  7. Cultural and Demographic Factors
    • India's diverse cultural landscape necessitates the customization of omnichannel strategies to cater to varying preferences, behaviors, and purchasing habits across different regions.
    • Cultural factors such as festivals, traditions, and social customs influence consumer spending patterns and shopping behaviors, shaping retailers' omnichannel strategies and marketing campaigns.
    • Recognizing the importance of localization, retailers adapt their omnichannel approaches to resonate with local tastes, languages, and cultural nuances, ensuring relevance and resonance with target audiences.

Ginesys: Driving Forces Behind India's Omnichannel Retail Revolution


Case Study

The landscape of foreign investment in India is undergoing a transformative shift, placing substantial value on omnichannel strategies.

Reliance Retail's recent acquisition, backed by investments from QIA, has propelled its valuation to an unprecedented hundred billion dollars. This development comes at an intriguing juncture, just ahead of the Annual General Meeting (AGM). Notably, the retail sector in India boasts a trillion-dollar industry, with e-commerce comprising a fraction. E-commerce is estimated at around 70 to 80 billion dollars, barely scratching the surface at less than 10%. However, forecasts predict a monumental leap, projecting India's retail sector to skyrocket from 70 billion to an astounding 950 billion dollars by 2032, signifying merely the dawn of its potential.


Reliance Retail's ascent to such a valuation underscores the significant role that omnichannel retailing plays in the Indian market. This valuation reflects the company's potential and signals a broader acknowledgment of the omnichannel model's effectiveness for driving growth.

  1. Market Potential: The exponential growth of retail in India over recent years, underscores immense market potential. The success of Reliance Retail highlights the immense market potential that omnichannel retailing holds in India. With a burgeoning middle class, increasing urbanization, and growing disposable incomes, there is a vast consumer base eager for seamless shopping experiences across channels.
  2. Changing Consumer Behavior: Reliance Retail's valuation also reflects the changing consumer behavior in India. Today's consumers seek convenience, variety, and personalized experiences, which omnichannel retailing adeptly caters to. Retailers can effectively tap into evolving consumer preferences by offering multiple touchpoints for engagement and purchase
  3. E-commerce Growth: The surge in e-commerce activity in India further emphasizes the importance of omnichannel strategies. Reliance Retail's valuation is a testament to its ability to leverage both physical stores and digital platforms to compete in the rapidly growing e-commerce market.
  4. Adaptation to Digital Transformation: Finally, Reliance Retail's success underscores the importance of adaptation to digital transformation. By integrating technology into its operations, Reliance has positioned itself at the forefront of the retail revolution in India. Embracing omnichannel strategies, it sets a benchmark for other players in the industry.

Investment Opportunities:

As the retail landscape in India continues to evolve, the convergence of physical and digital realms through omnichannel strategies emerges as a cornerstone of success. Companies agile enough to embrace this paradigm shift attract significant investor interest, reflecting the dawn of a new era in Indian retail. Foreign investors are increasingly recognizing the value of omnichannel strategies in the Indian retail landscape. Reliance Retail's valuation serves as a beacon for investors looking to capitalize on the country's retail sector.

Phygital Approach: Bridging Physical and Digital Realms:

The concept of 'Phygital' represents a seamless integration of physical and digital experiences, revolutionizing how businesses engage with their customers. By intertwining face-to-face interactions with cutting-edge digital technologies, the Phygital approach creates immersive and personalized user experiences that transcend traditional boundaries. A consumer might engage with a brand predominantly online but seek occasional offline experiences for tactile interaction. This highlights the imperative for retailers to facilitate effortless transitions between digital and in-store experiences, employing an omnichannel approach.

Let's delve into a case study to understand the practical implications of the Phygital approach. Consider a retail giant that recognizes the shifting dynamics of consumer behavior and the evolving retail landscape. Instead of merely offering products and services through conventional means, this retailer adopts a comprehensive Phygital strategy that permeates every aspect of its operations. Customers engage in a seamless blend of physical and digital experiences, from interactive in-store displays to augmented reality try-ons and personalized mobile apps. This results in more growth.

That is why understanding the significance of seamlessly navigating the omnichannel landscape is paramount for businesses striving to excel in the digital era.

India's retail revolution with omnichannel breakthrough

Important Trends

India has seen progress in logistics infrastructure in recent years, including expansion in logistics networks and advancements in last-mile delivery solutions. This transformation has enabled smoother omnichannel operations. It has helped retailers fulfill orders and meet customer expectations across multiple channels. The omnichannel approach is revolutionizing traditional retail paradigms. While the potential for omnichannel retailing has always existed, the recent surge in demand is indicative of a paradigm shift in consumer behavior and market dynamics.

Mergers and Acquisitions for Acquiring Digital Capabilities:

Today, companies increasingly recognize the importance of integrating digital technologies into their operations to stay competitive. By acquiring entities with established digital infrastructure and expertise, retailers can swiftly bolster their omnichannel presence and adapt to changing consumer preferences. Acquisitions also serve as catalysts for transformative change within organizations. Through strategic acquisitions, companies can gain access to innovative technologies, diverse talent pools, and specialized resources essential for driving digital transformation.

  1. Marico's Acquisition of Satiya Nutraceuticals: Marico, a leading consumer goods company, made waves by acquiring a majority stake in Satiya Nutraceuticals, the parent company of the popular brand Plix. This strategic move not only expanded Marico's product portfolio but also enabled it to tap into the growing health and wellness segment through digital channels.
  2. ITC's Acquisition of Sproutlife Foods: ITC, a diversified conglomerate, ventured into the direct-to-consumer (D2C) space by acquiring Sproutlife Foods. This acquisition empowered ITC to strengthen its digital footprint in the health food segment, catering to the evolving preferences of health-conscious consumers.
  3. HUL's Investments in Zywie Ventures and Wellbeing Nutrition: Hindustan Unilever Limited (HUL), a household name in the FMCG sector, demonstrated its commitment to digital transformation by acquirV-Mart Retail's Acquisition of LimeRoad: V-Mart Retail, a renowned chain of value retail stores, ventured into the realm of social commerce by acquiring LimeRoad. This strategic merger enabled V-Mart to tap into the power of social media and digital platforms to enhance customer engagement and drive sales growth.
  4. PharmEasy's Acquisition of Thyrocare: PharmEasy, a leading online pharmacy platform, made a significant move by acquiring Thyrocare, a prominent player in the diagnostics industry. This strategic acquisition expanded PharmEasy's service offerings and strengthened its digital healthcare ecosystem.

Valuation Uptick:


Omnichannel Expansion: Digital Acquisition Sparks Valuation Surge


Challenges and their Solutions with Ginesys

ChallengesSolutions with Ginesys
Lack of Integrated SystemsImplement Ginesys One suite for seamless integration of various retail operations across channels.
Limited Customer Data VisibilityUtilize Ginesys One CRM integrations to consolidate customer data from different touchpoints and gain insights into their preferences and behavior for personalized experiences.
Inefficient Order FulfillmentEmploy Ginesys One Order Management System to efficiently manage orders from multiple channels, optimize inventory allocation, and streamline fulfillment processes.
Difficulty in Providing Consistent Customer ExperienceLeverage Ginesys Unified Commerce platform to ensure consistent branding, pricing, and promotions across all channels.
Complex Inventory ManagementThe Inventory Management System centralizes inventory data, tracks stock levels in real time, and synchronizes inventory across channels to prevent stockouts and overstock situations.
High Operational CostsRetail ERP automates routine tasks, optimizes resource allocation, and improves operational efficiency, reducing overall costs associated with omnichannel retailing.
Limited Omnichannel AnalyticsUtilize Ginesys Business Intelligence tools to gather insights from omnichannel data, monitor performance metrics, and make data-driven decisions to optimize strategies and improve ROI.
Integration Challenges with Existing SystemsOffers seamless integration capabilities with existing systems through APIs and connectors, ensuring smooth transition and interoperability without disrupting ongoing operations.
Scalability IssuesProvides scalable solutions that can accommodate the growing needs of retail businesses, ensuring scalability without compromising performance.

Ginesys: Solutions for Seamless Retail Integration and Growth


Omnichannel retailing holds immense potential to revolutionize the retail landscape in India. The transformative impact of omnichannel retailing lies in its ability to seamlessly integrate online and offline channels, providing customers with a cohesive shopping experience. Ginesys plays a pivotal role in shaping the future of retail in India by offering robust solutions that empower retailers to thrive in the omnichannel era. With its innovative features and customer-centric approach, Ginesys enables retailers to stay ahead of the curve and deliver exceptional experiences across all touchpoints. As the retail landscape continues to evolve, Ginesys remains committed to driving innovation and empowering retailers to succeed in the dynamic omnichannel environment.