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The e-commerce space is expected to grow at 27 percent CAGR, while the brick and mortar or offline retail will grow at 16 percent between 2017-2021, according to the research report ‘Customer Experience\u00a0(CX) – The Epicentre of Retailing’ by\u00a0ANAROCK\u00a0Property Consultants.<\/p>\n
“With the new\u00a0e-commerce\u00a0policy in effect from early this month,\u00a0online retail giants\u00a0are re-aligning their\u00a0business\u00a0strategies and focussing to expand their offline presence,”\u00a0Anuj Puri,\u00a0Chairman, ANAROCK\u00a0Property Consultants says.<\/p>\n
Brick-and-mortar or offline retailers that were earlier under threat from e-commerce are now looking forward to a more level playing field and tapping into the rapidly growing Indian consumer market with renewed confidence and\u00a0business\u00a0prospects.<\/p>\n
The new\u00a0e-commerce policy is expected to bring parity between the online and\u00a0offline retailers\u00a0and address the concern of data colonisation, as well.<\/p>\n
According to Puri, even as\u00a0online players\u00a0may lose many of their competitive advantages such as high price discounts on their private labels, brick-and-mortar stores will focus on offering superior\u00a0customer experience\u00a0to enhance customer loyalty.<\/p>\n
Under the new e-commerce policy, online players are likely to lose their competitive advantages such as high discounts and sales of their own private labels with a competitive pricing strategy, the report stated.<\/p>\n
The report takes into consideration the projected growth rates, value propositions, FDI restrictions and new policy framework that are expected to influence the customer buying pattern.<\/p>\n
It also outlines that customer experience\u00a0and built environment are completely metamorphosing the retail\u00a0business\u00a0in the country. These trends have already started influencing and impacting both the online and the\u00a0offline retail\u00a0segments.<\/p>\n
Digital disruption has impacted the consumer buying process enabled by technology which has transformed the retail sector\u2019s dynamics. It has shifted from merely satisfying the basic want of consumer to offering a superior customer experience.<\/p>\n
JUMP IN MALL-SUPPLY<\/strong><\/p>\n Mall development has evolved over time. India has luxury malls, book malls and gold souks. According to ANAROCK\u00a0Property Consultants, India could witness a three-fold jump of mall supply this year – from 3.2 mn sq ft in 2018 to nearly 10 mn sq ft – following supply rollover from the previous year.<\/p>\n Responding to burgeoning consumerism in India, mall developers are rapidly infusing new\u00a0retail\u00a0developments across the top seven cities, with nearly 10 mn sq ft new mall supply in 2019. Factoring in the rollover of some supply from 2018, there will be a three-fold jump in 2019 against the preceding year.<\/p>\n Design and built and environment of the retail spaces play a very important role in influencing the customer and their shopping behavior.<\/p>\n F&B and entertainment zones are catalyst driving the growth by attracting customers to the malls.<\/p>\n The report stated that style, variety and quality in a mall also enhance the loyalty of the customer<\/p>\n “Malls should add value proposition to the customers and services such as quality and diversity in products, entertainment and servicing. This will add to the Hedonic value of the mall and the mall will witness an increase in footfalls.”<\/p>\n \u00a0
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