Industry leaders discuss the transformative shifts in consumer engagement, sustainability and the rise of quick commerce, shaping India’s retail landscape
As we step into 2024, the retail landscape in India is experiencing rapid evolution, driven by changes in consumer behaviour, technological advancements, and the rise of quick commerce. The pandemic has undoubtedly accelerated the shift toward digital-first and omnichannel models, reshaping the way brands engage with customers. The demand for speed, convenience, and sustainability is now at the forefront, prompting businesses to adapt and innovate to stay relevant.
Evolving Consumer Behavior and Engagement Strategies Badri Beriwal, Chief Strategy and Business Development Officer at Bata India, sheds light on how consumer behaviour has significantly shifted post-pandemic. “Consumer behaviour has always evolved, but COVID-19 has accelerated significant changes. Convenience has become a key priority, with consumers expecting seamless experiences across online and offline channels. To meet this, we are investing in enhancing experiences both in-store and on our digital platforms, ensuring uniformity in promises and services,” he says. Additionally, he emphasises the growing demand for quicker delivery, with Bata now offering shoes delivered within 10 minutes through quick commerce platforms.
Engaging Young Consumers Through Sustainability and Omnichannel Approaches Raj Kumar Jain, Managing Director at Bonjour, reflects on the transformation he has witnessed over the years. “Having been in business for four decades, I’ve witnessed a complete transformation in consumer behaviour. Thirty years ago, choices were limited, but today, there’s an abundance of options across online, offline, and quick commerce. Gen Z, in particular, is experimental, well-informed, and quick to decide. Price often influences their choices, especially in the fast-fashion segment, which is evolving rapidly online and offline.”
To meet these demands, Raj shares that his company is focusing on quick adaptability, competitive pricing, and instant delivery. “Whether online or in-store, we ensure availability—offering same-day or even one-hour delivery depending on location. This approach is essential to meet the impatience of today’s consumers and will only continue to grow,” he adds.
Navigating Hybrid Models for a Seamless Customer Experience Badri further explains the importance of providing a consistent and personalised customer experience across all channels. “The core question is how to treat each customer as an individual while respecting data privacy laws and ensuring a seamless, personalised experience. Whether a customer buys online or offline, the service should remain consistent. For example, if a customer purchases in-store and wants a product picked up from home, the brand should enable that,” he says. Brands need to ensure that high lifetime value customers receive premium treatment, regardless of the channel through which they shop.
Raj refers to the shift of brands like Nykaa and Lenskart toward hybrid models. “Take Nykaa, which began as an online aggregator of cosmetics. While it gained customers, it missed those who preferred to touch and feel products. Similarly, Lenskart, offering eyewear, tapped into the need for an offline presence, as many still prefer trying spectacles before buying. By understanding pricing and customer needs online, these brands transitioned to a hybrid model, bridging both worlds and catering to the entire market effectively, “ he says.
Adapting Supply Chains for Quick Commerce Demands Dipanjan Banerjee, Chief Commercial Officer at Blue Dart Express, highlights the significant shift in supply chain dynamics as brands race to meet the demands of quick commerce. “Amazon recently launched a 15-minute quick commerce service to keep up with the competition. The retail landscape in India has undergone significant transformations over the past decade, especially with the rise of e-commerce. The key to supporting these changes is an adaptable supply chain,” he explains.
Dipanjan goes on to explain that supply chains need to be flexible to support new delivery models, such as quick commerce, and emphasises the role of design and technology in this evolution. He remarks, “To deliver seamless customer experiences, supply chains must evolve with new models—whether it’s a hybrid of online, offline, or quick commerce. Design and technology play crucial roles in this evolution. Traditional models have shifted, and to meet the growing demand, we’re focusing on last-mile delivery, time-slot-based deliveries, and tech-enabled solutions to stay ahead of the change.”
Sustainability and Consumerism: Balancing Brand Engagement Sustainability remains a significant concern for many consumers, especially younger generations. Badri highlights the importance of integrating sustainability into business operations: “While some consumers are still not fully discerning about sustainability, there is a growing awareness, especially among younger generations. To address this, sustainability must be embedded as a core value within the organisation.”
Bata India is taking significant steps toward carbon neutrality by utilizing sustainable energy in factories and stores and reducing power consumption through smart technologies. “Additionally, the brand is working on sustainable product initiatives, such as organic cotton socks, to meet the growing demand for eco-conscious products.”
Raj also adds his perspective on sustainability in the fashion industry. “To increase our footprint, we started with reprocessed yarns, especially synthetic yarns, which are environmentally challenging because they are non-destructible. By reprocessing these materials multiple times, we’re able to use them more sustainably. For cotton, we mix 50 per cent reprocessed cotton into the main yarn, maintaining quality and feel. Additionally, in packaging, we’re focused on using only recyclable materials to avoid climate harm,” he shares.
The Role of Direct Selling and Social Platforms in Retail The role of social platforms in retail has also grown significantly. Raj explains, “With consumers spending so much time online, platforms like Instagram and WhatsApp play a strong role in sales.
Social commerce has become a vital aspect of our strategy, with brands leveraging these platforms for direct selling.”
Badri acknowledges the importance of both offline and online models, stating, “Consumers are moving into digital, and I believe the future will integrate both offline and online. The biggest growth driver for digital commerce will be quick commerce.”
Is Quick Commerce Expanding to Expensive Products? Dipanjan predicts that the future of quick commerce will involve differential delivery timelines based on product type. “We are already seeing encouraging signs, with consumers purchasing through major platforms. The key will be managing the supply chain effectively, as we’ll need to determine delivery timeframes based on the product. Urgent items like shoes may need delivery within 10 minutes, while products like party dresses could allow for a longer wait,” he explains.
He also discusses the challenges posed by quick commerce in India, particularly the need for infrastructure to support rapid delivery. “There’s a cost of convenience that consumers will eventually have to pay for,” Dipanjan concludes. “As infrastructure evolves, the challenge is balancing the cost of real estate, inventory, and delivery.”
As the retail industry adapts to changing consumer expectations, the focus will remain on innovative thinking, technological integration, and providing a seamless customer experience, both online and offline. The shift towards quick commerce and sustainability will continue to shape the future of retail in India. The experts shared their insights as a part of the panel discussion that happened at the BW Retail World’s Building Blocks Of Retail Summit and Awards.
