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Indian Retail Sector Embraces AI and Omnichannel Strategies to Drive Growth: Survey
Social media has emerged as a vital touchpoint, with 72% of businesses relying on it as their primary channel for customer discovery and engagement.
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The Indian retail landscape is experiencing a remarkable shift, with 60% of businesses planning to adopt Artificial Intelligence (AI) and Machine Learning (ML) by 2030. Additionally, 44% are counting on AI-driven personalisation to enhance customer experiences, as revealed by a recent survey from Zoho. This study gathered insights from over 2,700 micro, small, and medium enterprises (MSMEs) throughout India.
"Indian MSMEs are creating a pivotal shift in the retail sector," said Prashant Ganti, Vice President, Global Product Strategy, Finance and Operations Platform, Zoho. "Our study shows that embracing a seamless online and offline selling strategy, coupled with the adoption of the right tools, including AI, to enhance the buyer experience, is essential for growth and future-proofing a retail business."
The survey shows that six out of ten MSMEs have already implemented an omnichannel strategy, utilising both physical and digital retail avenues. Among these, 75% believe this combined approach allows them to connect with more customers, while 68% report generating equal revenue from both channels. Moreover, 82% of offline retailers expressed a strong interest in expanding their digital presence, with marketplaces being the top choice for online sales.
Despite the digital push, physical stores continue to play a vital role. The report indicates that 71% of consumers still prefer shopping in-store to physically inspect products. Retailers highlighted personalised service (66%) and immediate product access (59%) as significant benefits of in-person shopping experiences. Interestingly, nearly half of the retail MSMEs considering a physical location are leaning towards starting with pop-up stores due to their flexibility and cost-effectiveness.
However, challenges are still on the horizon. About 60% of respondents pointed to logistics and supply chain hurdles, while 57% mentioned the high operational costs associated with maintaining physical stores.
Customer expectations are changing fast. 57% of retailers say that fast delivery is their customers' top demand, with many noting a rising desire for same-day delivery. Convenience is a big deal too, with 82% of shoppers valuing it, while 71% are drawn in by competitive pricing. When it comes to in-store experiences, 70% of retailers now accept mobile payments, and others are enhancing the shopping journey with tablets (66%) and kiosks (50%).
Social media has emerged as a vital touchpoint, with 72% of businesses relying on it as their primary channel for customer discovery and engagement. Platforms like WhatsApp, Instagram, and Facebook are also being tapped for gathering customer feedback and driving direct sales.
In light of these shifting demands, Zoho has rolled out an upgraded version of its commerce platform, Zoho Commerce. This new platform boasts a sleek user interface, mobile app support, and features like multi-currency checkout, digital downloads, loyalty programs, and cart recovery. It also facilitates social selling through platforms like WhatsApp and offers tools for B2B businesses to manage quotes, credit limits, and negotiations.
As technology and consumer expectations evolve at breakneck speed, Indian retailers are making bold moves towards innovation, and platforms like Zoho Commerce are here to help them take the lead.
