Offline retailers push their omni-channel models for growth

While cash-rich e-tailers like Flipkart, Amazon and Snapdeal are posing a stiff competition to offline players by wooing consumers away with their discounting strategies, sale events and wide offers, offline retailers are busy launching omni-channel initiatives to drive business. From Aditya Birla Group, Reliance Industries to Tata, all have announced their respective multi-channel retail models.

Aditya Birla Group is transforming its brick-and-mortar fashion business under Madura and Pantaloons into omni-channel retail with the launch of trendin.com in 2013. Tata Group, with its retail business spread across several categories including fashion, electronics, grocery, watches and accessories and jewellery, has also introduced omni-channel for some of its businesses in the last couple of years. And Mukesh Ambani-led Reliance Industries has announced its plans of going the omni-channel soon.

Trendin has witnessed business grow at a rapid pace with revenues of about Rs 50 crores in 2014/15. According to PwC, India’s internet users are short by only 36 million as compared with 279 million in the US. However, in relation to its population, only 19 percent Indians use the internet which clearly shows the potential. Further, about 75 percent of Indian internet users are in the age group of 15 to 34 years, who shop more than the remaining population. No wonder, the retail industry players are realising the need to adopt an Internet-led retail model for growth.

Experts feel, big companies eyeing foray into the ecommerce will be cautious about their outlay and spends and if they don’t burn the cash, then their growth will not be as fast as that of the existing e-retailers.