omnichannel retail

Understanding the Rise of Omnichannel Retail in India

  1. Introduction
  2. What is Omnichannel Retail?
  3. Key Drivers of Omnichannel Retail Growth in India
  4. Why Should Brands Focus On Omnichannel Retail?
  5. Conclusion

The e-commerce industry has undergone a 360-degree revolution. Today, the industry is not just growing; it’s exploding at an unprecedented rate, with projections placing its market value at a staggering 1.7 trillion by 2026!

At the heart of this revolutionary surge lies the adoption of technology-driven retail strategies, such as omnichannel retail, to keep up with the new demands of modern-day shoppers.

In this blog, we will explore the various dimensions of omnichannel adoption in India, including what’s driving its adoption, benefits, strategies, and a lot more.

But first, let’s understand what exactly omni-channel retail is.

What is Omnichannel Retail?

Omnichannel retail is a fully integrated e-commerce approach that enhances retail brands’ reach, visibility, and impact across various sizes and sectors. It combines advanced digital tools, a customer-first approach, and comprehensive support to offer a seamless shopping experience over multiple platforms. It integrates different shopping channels, from brick-and-mortar locations, mobile/desktop browsing, e-commerce marketplaces, or social media, into one system, allowing customers to switch between them effortlessly. 

This integration lets customers move seamlessly from one channel to another, maintaining their shopping cart, tracking orders, and interacting with customer service on any platform. It provides a consistent, personalized, and brand-aligned shopping journey, effectively merging the online and offline shopping experiences.

The Driving Factors Behind the Omnichannel Retail Adoption in India

Omnichannel retail in India began to take shape around the mid-2010s. Major retailers started to blend their in-store and online presence, responding to changing consumer needs and taking advantage of India’s growing internet and smartphone use. They began using omnichannel solutions to connect their physical stores with digital platforms, offering customers consistent products and prices across all channels.

Today, the Global Omnichannel Retailing Market size is estimated to be valued at US$ 7.80 billion and is expected to reach US$ 19.51 billion by 2030, projected to increase at a CAGR of 14% from 2023 to 2030.

Key Drivers of Omnichannel Retail Growth in India

Key Drivers of Omnichannel Retail Growth in India

1. Digital Transformation: Increased internet usage, smartphones, and affordable data plans have encouraged retailers to adopt omnichannel strategies.

2. Changing Consumer Behavior: Consumers expect a smooth, consistent shopping experience across various channels. Retailers who can provide this seamless experience gain a competitive edge.

3. Growth of E-commerce: The expanding e-commerce industry is a major contributor, encouraging retailers to strengthen their online presence to reach a wider audience.

4. Increasing Mobile Adoption: The surge in mobile commerce has prompted merchants to embrace omnichannel retail, optimize their websites and applications for mobile platforms, and incorporate mobile payment tools to enhance the whole buying experience.

5. Personalization and Customer Experience: Personalized shopping experiences are key. Retailers leverage data and technology to provide customized recommendations and offers, enhancing the shopping journey across channels.

Why Should Brands Focus On Omnichannel Retail?

Adopting an omnichannel retail strategy is all about providing customers with convenient and personalized shopping experiences, both online and offline. This flexible approach brings several benefits to retail businesses.

Efficient Inventory Management

When a brand operates across multiple channels, it can distribute products more effectively to meet varying customer demands. Retailers can manage their inventory efficiently by understanding where demand is higher, either in physical stores or online. Such an omni channel management strategy prevents stock imbalances and enhances customer satisfaction and loyalty, as shoppers consistently find what they need with fewer delays or interruptions in their shopping experience.

Cost-Efficient Marketing

If businesses want to cut expenditures on marketing, it makes sense for them to use an omnichannel approach. This approach provides a variety of ways to convert customer interest into sales. An omnichannel brand isn’t just limited to one type of promotion; it has the freedom to engage customers creatively across multiple platforms. Whether through social media, email campaigns, or in-store events, every interaction is an opportunity to promote the brand and build customer loyalty.

Better Customer Experience

At its core, an omnichannel experience is all about putting the customer first. It caters to their preferences, ensuring a smooth and consistent experience across all shopping channels. Customers appreciate the convenience and flexibility to browse, research, buy, and return products in the way that suits them best. By offering an omnichannel approach, you’re meeting these expectations head-on. This versatility not only enhances the shopping experience but also strengthens customer loyalty.

Increase in Sales and Website Traffic

Being present on multiple channels allows you to reach a broader audience, offering more ways for customers to engage and buy. This diversity can significantly boost sales. Additionally, omnichannel retail enhances your brand’s visibility, drawing more traffic to your website. For instance, consistent social media advertising and local pop-up stores increase brand recognition. Customers tend to buy more from brands they know and trust.

Competitive Advantage

In the competitive retail landscape, an omnichannel approach can set you apart. By providing a better, more reliable, and consistent purchasing experience, you draw clients who appreciate these attributes and provide your company a big competitive advantage.

Boost Customer Loyalty & Retention

An omnichannel approach naturally builds a loyal customer base with its varied shopping methods and personalized experiences. These customers are likelier to repeat purchases and share their positive experiences. Effective communication across multiple channels reinforces this loyalty by demonstrating your commitment to customer service. 

Better Understanding of the Customer Journey

Implementing an omnichannel strategy allows for comprehensive data collection across channels. This gives you a complete view of customer interactions, preferences, and behaviors. You can leverage this data to personalize the shopping experience, regardless of where or how customers shop. For example, online shopping data can be used to tailor product recommendations in physical stores, enhancing the customer experience and increasing sales chances.

Operational Efficiency

An omnichannel strategy streamlines operations and cuts costs. Collecting customer data once and applying it across all channels achieves more efficient and consistent omnichannel management. This not only saves time but also improves the overall operational workflow.

Cost efficiency with AI

AI not only improves efficiency and minimizes errors in the supply chain but also cuts costs by reducing the need for manual labor. This reduction in human error leads to less waste of resources and an increase in their profits. Additionally, manufacturers can offer their products at more competitive prices, benefiting both the company and the consumer. AI enables this economic strategy, which aids companies in streamlining their operations and maintaining a competitive edge in the marketplace.

Inventory Management Efficiency

Today, managing inventory is a big challenge for manufacturers. Keeping track of orders and raw materials manually requires much attention and effort. AI can simplify this by automating the process. It identifies stock levels, generates real-time orders, and maintains optimal stock when demand rises. This leads to cost reductions, less downtime, and higher profitability.

An AI-powered inventory and order management solution offers several advantages. It automates order processing and provides real-time inventory tracking. This system also optimizes inventory allocation, predicts when to restock, and handles ordering automatically. Using AI, manufacturers can manage their inventory and orders more efficiently, making their operations smoother and more cost-effective.

Route Optimization: 

AI-powered route optimization systems can help logistics companies plan the most efficient delivery routes by considering various factors like traffic congestion, weather conditions, road quality, and delivery urgency. This approach significantly reduces transportation costs and speeds up delivery times, leading to happier customers. By smartly navigating around delays and choosing the best routes, these AI systems ensure timely deliveries even in challenging conditions. This not only boosts the overall efficiency of the delivery process but also enhances the reliability and reputation of logistics companies.

Customer Service Enhancement

AI is key to improving customer satisfaction and loyalty in India, where customer expectations quickly change. It’s great at analyzing customer feedback and online activities, providing vital insights for product development and marketing. An AI-driven order management solution is particularly effective in building customer trust and loyalty in a competitive market. They offer customers up-to-date information on their orders and expected delivery times. This transparency and efficiency not only meet but often exceed customer expectations.

The timely delivery

AI-enabled automation speeds up processes by helping to save important time that would otherwise be spent on repetitive chores. It also speeds up the process by lowering the amount of human interaction. Artificial Intelligence is a major factor in improving last-mile delivery accuracy. It analyzes traffic patterns, local events, and even customer behavior. This analysis helps streamline delivery routes and schedules. By optimizing this time-consuming segment of the delivery process, AI ensures faster, more reliable deliveries and contributes to significant cost savings for businesses.

Automation: Streamlining Operations

AI-driven automation plays a crucial role in simplifying complex supply chain operations. AI speeds up these processes and reduces human errors by automating everyday tasks like processing orders, tracking shipments, and managing inventory. This leads to more efficient and reliable operations. An AI-powered solution like an e-commerce management system greatly improves the efficiency of various e-commerce activities. With AI, businesses can ensure products are collected and prepared most efficiently for shipment. This level of automation streamlines operations and supports better customer service by ensuring timely and accurate deliveries.

Optimizing Demand Forecasting with AI

In India’s varied market, getting demand forecasting right is essential. AI algorithms look at past sales, market trends, and socio-economic factors to accurately predict what will be needed in the future. This accuracy allows companies to adjust their production and distribution plans effectively. With AI, businesses can manage their inventory better, reducing excess stock and lowering the risk of running out of products. By using AI for demand forecasting, companies can also ensure they have the right products available at the right time, meeting consumer needs more effectively.

Risk Mitigation and Resilience

AI’s ability to analyze data streams from various sources makes it a valuable tool for risk mitigation and resilience planning. In a nation susceptible to natural calamities and political instabilities, possessing a system capable of forecasting and managing disturbances holds tremendous worth. AI can identify potential hazards, enabling the supply chain industry to implement backup strategies and guarantee uninterrupted business operations.

How Do You Create an Omnichannel Retail Strategy for Your Brand?

Creating an effective Omnichannel Strategy involves several key steps:

  1. Assess Your Current State: Start by evaluating your current channels, technology, and how you manage customer data. Identify where you need improvements to establish a strong foundation for your omnichannel strategy.
  2. Establish Your Goals: Establish clear objectives for your company. This might be expanding your market presence, improving client happiness, or boosting revenue. Your approach will be guided in the appropriate direction by well-defined objectives.
  3. Integrate Channels and Systems: Make sure your various channels work seamlessly together. This includes consistent branding, pricing, and product information across all platforms. Investing with an e-commerce solution provider that is well-equipped to ensure optimal integral could be beneficial 
  4. Personalize the Customer Journey: Use customer data to offer personalized experiences. Adjust your recommendations, promotions, and offers based on customer preferences and buying history.
  5. Optimize your Inventory and Supply Chain: Implement a real-time inventory management system for better visibility across all channels. This helps maintain accurate stock levels and efficient order processing.
  6. Embrace Emerging Technologies and Infrastructure: Invest in robust technology infrastructure to support an omni-channel strategy. This includes an integrated CRM system, inventory management software, mobile apps, and responsive websites. Keep up with new technologies and trends to keep your strategy competitive.
  7. Monitor and Analyze Data: Continuously collect and examine data from every customer touchpoint. Use analytics tools to evaluate your channels and strategies’ performance, making adjustments as needed for ongoing improvement.


In today’s world, retailers must provide excellent shopping experiences, whether online or in-store. The key is delivering consistent, high-quality service across all channels. However, transitioning to an omnichannel approach can be challenging, especially for smaller retail brands.

That’s where Ordazzle, a leading ecommerce solution provider, can immensely help. Our expertise in the e-commerce sector, coupled with our advanced omni channel management solutions, positions us to assist you in seamlessly integrating your multiple marketplaces and creating a cohesive omnichannel experience for your customers.

Contact our experts today and join the omnichannel retail strategy bandwagon today!