Omni channel retail helping brands/retailers increase sales

Most brands and retailers are now opting for omni channel retail with both online as well as an offline presence. For example, Amazon has opened a brick and mortar bookstore in the US. In India, Amazon has already started taking the omni channel route in grocery segment. In Bangalore, for instance, Amazon has tied up with Big Bazaar, Foodworld, Spar Hypermarket and Reliance Fresh, among others.

Omni channel, a cross-channel business model that makes use of brick-and-mortar stores and technology, including using e-commerce, dedicated mobile phone applications, and websites, is a growing trend in Indian retail to tap maximum footfalls.

The omni channel strategy is expected to improve confidence in online shopping and accelerate the number of customers converting from offline to online shopping. Online fashion player Myntra is planning a brick and mortar store soon with a range of brands: Roadster, HRX and All About You. While e-commerce businesses has seen tremendous growth over the last few years, most are struggling to turn profitable. Omni channel provides a larger base of revenues to amortise fixed costs such as offline advertising, manpower and corporate overheads along with improved returns on inventory at a consolidated level. The fact is there is still a significant portion of the Indian population that remains unaddressed by e-commerce players.