In the realm of Retail, particularly within the intricate tapestry of fashion, be it apparel or footwear, the debate between physical stores and digital platforms has been an enduring saga. As the digital era continues to evolve, reshaping consumer behaviours and expectations, the future of footwear retail stands at a fascinating crossroads where tradition meets innovation, and convenience intertwines with experience.
The Dance of Convenience and Experience
The traditional dichotomy between online and offline purchases often hinged on the nature of the product. Rational purchases like electronics, where specifications are paramount, found an early home in the digital sphere. Yet, the narrative shifted when it came to more nuanced choices, like fashion and footwear. Here, touch, feel, fit, and personal design taste reign supreme, seemingly irreplaceable by the virtual shopping experience.
However, the tide has turned, and what was once thought impossible has now become commonplace. Thanks to the evolution of ecommerce, coupled with generous return/exchange policies, enticing discounts, a wider array of merchandise options to choose from and free home deliveries – online purchases for fashion items, including footwear, have flourished. Also, with higher penetration of mobility and the growing digital audiences influenced by Social media, online shopping is getting more prominent. However, does this spell doom for brick-and-mortar stores?
Strategic Integration: The Omnichannel Imperative
The answer is a resounding No! Physical stores offer an irreplaceable sensorial experience, allowing customers to immerse themselves in the essence of a brand, feel the textures, and try on the shoes or footwear styles that catch their eye. One of the most important criteria for purchasing footwear is comfort; which obviously cannot be judged while viewing the product digitally.
Thus this experiential aspect of the purchase journey is an inherent human desire that cannot be fully replicated by pixels on a screen.
However, in the modern landscape, where time is a precious commodity and convenience is king, online shopping has emerged as a formidable contender. The amalgamation of discounts, doorstep deliveries, and a plethora of choices has lured consumers into the digital realm. Yet, offline experiences continue to hold sway, offering a sanctuary for those seeking tangible connections and memorable shopping escapades.
Hence, the future of footwear retail lies not in the domination of one channel over the other but in a delicate dance between the two. Retailers understand this and have embraced an Omni-channel approach, attempting a seamlessly integration of their physical and digital presence to cater to the diverse needs of their customers.
Similarly, direct-to-consumer (D2C) footwear brands like Neemans have disrupted the traditional retail model by leveraging the power of both physical and digital channels. By launching offline retail formats alongside a robust online presence, they have carved out a niche in the fiercely competitive footwear market.
Even legacy retailers like Paragon, Bata, Metro have embraced the winds of change, realizing that survival hinges on adaptation. Paragon is available across 2 lac+ multi-brand retail outlets and close to 90 Exclusive Brand Stores, across the country; yet we have augmented our physical stores with online platforms, ensuring that customers can access their favourite products with just a click of a button!
Deciphering the Numbers: Insights into the Retail Revolution
Forbes reports that India’s e-commerce industry is projected to hit INR 4,416.68 billion by 2024, growing annually at 11.45% to reach INR 7,591.94 billion by 2029. By 2024, e-commerce is anticipated to represent 20.8 per cent of the total retail market. The footwear e-commerce market in India is expected to account for 18.7 per cent of the total e-commerce market in 2024.
This paints a vivid picture of the evolving retail landscape. In India, a country on the cusp of digital transformation, e-commerce giants like Amazon and Flipkart who boast of staggering market penetration, are reaching even the remote corners of the nation. With nearly 98 per cent of pin codes covered today, they have become the go-to destinations for millions of shoppers, reshaping the retail narrative.
When it comes to Ecommerce, an added benefit for Brands is the immense possibilities of data mining. Online shopping and ecommerce offer unparalleled insights into consumer psyche and purchase behaviours, surpassing the capabilities of the offline model. This deeper understanding of consumer behaviour is imperative for business owners and marketers, empowering them to engage in precise targeting. Successful companies adeptly manage this wealth of data through strategic mining, enabling them to unlock invaluable insights and drive impactful decision-making.
Embracing the Future: Harmonising Physical and Digital Realms
Yet, amidst this digital frenzy, the allure of physical stores remains undiminished. They serve as havens of discovery, allowing customers to indulge in the art of browsing and serendipitous encounters. Herein lies the magic of retail – a delicate balance between the tangible and the virtual, the old and the new.
In conclusion, the future of footwear retail is not a zero-sum game but a harmonious symphony where physical and digital channels coalesce to create a multifaceted, seamless shopping experience. As we stride into this brave new effervescent and ever evolving world of customer preferences, let us embrace the diversity of options, celebrating the best of both worlds. After all, whether online or offline, the joy of finding the perfect pair of shoes knows no bounds!
(Shawn Chandy is the Chief Marketing Officer at Paragon Footwear)
