Why all this hype then? The fact is that today, online or offline sales are no longer an “either, or” choice. Brands have no option but to opt for an omnichannel strategy.

With 75% of Indian households now proudly wielding smartphones, consumer behavior has been flipped on its head. Gone are the days when a consumer-facing business operated in silos, with entirely independent teams running their verticals. For a brand to stay relevant, it must be available across the spectrum of shopping channels. From q-commerce to e-commerce to retail shops like modern trade stores, local Kirana stores and even the corner paan shop, an integrated omni-visible, omni-available and hence omnichannel sales approach is the need of the hour.

What exactly is this holy grail of sales called “omnichannel”? It refers to providing customers with a seamless and integrated shopping experience across multiple channels, both online and offline. Brick-and-mortar stores, e-commerce websites, mobile apps, social media platforms, and even traditional catalog sales are brought together to create a unified experience. This involves offering the same products or services across different channels while matching inventory, pricing, promotions, and brand identity to ensure a cohesive experience. No matter where or how a consumer interacts with your brand and products, the experience should be so cohesive it feels like one continuous conversation.

Of course, achieving this level of uniformity is no walk in the park. It requires constantly syncing inventory, pricing, promotions and brand voice across a dizzying array of channels. Plus, an omnichannel approach comes with a heftier price tag and uses more resources than focusing on just one channel. Taking an omnichannel approach also raises issues of consistency in offers, specification, prices, pan-India fulfillment turnaround time and sometimes creating differential catalogs to meet the needs of specific channel-based target groups.

But here’s the bottom line: the benefits of going omnichannel far outweigh the cons. Diversification of sales channels is the first step to ensuring global acceptance and consistent sales. In fact, shoehorning all your efforts into a single channel is like boxing with one hand tied behind your back.

Talking about trending sales channels, e-commerce in India is set to grow at 18% per annum through 2025. Businesses earn more digitally by eliminating the middleman and retail store rents while also collecting direct feedback from the customers about their products. This is a major reason why the Indian e-commerce industry is projected to reach US $300 billion by 2030. Even digital ad spending share is set to increase to 42% in 2024.

The online sales model has its pitfalls. In the Indian context where sensory inputs have traditionally been the primary means of buying products, e-commerce channels often result in higher product returns as customers are buying without having touched, felt or tried the product. This is also a reason for an inherent apprehension to purchase online and customers choosing Cash on Delivery (COD) for a sense of security.

A new peculiar phenomenon called ‘online counterchecking’ has also come into play with online shoppers. Most buyers today are looking out for the best deal and their faith in a brand is dependent on the option to compare offline and online prices. This has tied into the current online shopping process.

Other than this, for traditionally offline brands, the logistics shift from box-in box-out to a single order fulfillment model requires significant investment to ship their products. This is further complicated by the need to set up dedicated customer support that goes beyond product queries and covers order fulfillment and review management.

On the flip side, offline sales is a proven model. If the business manages to find adequate retail space, which comes at a premium, then the pay-off is that it will command customer loyalty and find itself in the customer’s shopping list.

As we read into this, it becomes clearer that both models complement each other. One could go as far as saying that both are now pillars of the entire shopping experience – where visibility, brand recall and ultimately sales are driven primarily by a brand’s availability across offline and online channels.

Thus, we come back to the original conclusion that omnichannel is the omni-way. Striking that perfect balance between online and offline, digital and traditional, automated and high-touch – that’s the secret sauce of sales henceforth. It may be resource-intensive, but the payoff is a customer experience so delightful and frictionless, that your brand becomes an irreplaceable part of consumers’ lives.

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Local retailers and kiranas in Telangana and Uttar Pradesh witnessed the highest growth in assisted e-commerce transactions, recording more than 1100% and 164% increases respectively. The PayNearby’s report titled ‘Atmanirbhar Bharat Digital Empowerment’ highlights the growing acceptance of assisted financial and digital services at semi-urban and rural retail stores such as Kirana stores, medical stores,  and mobile recharge stores.

Some of the popular categories in the e-commerce segment and branded shops segment include grocery, mobile & accessories, and clothes. The average ticket size in the e-commerce and branded shop categories was INR 1,500 and INR 3,000 respectively.

Anand Kumar Bajaj, Founder, MD &CEO, PayNearby, said, “Rural commerce is undergoing a significant shift with aspirational customers getting access to various products at a nearby store. At PayNearby, we are leveraging the Distribution-as-a-Service (DaaS) architecture so that the customers can embrace the e-commerce revolution with superior experience, local retailers have enhanced income opportunities and e-commerce partners can expand their footprint, even to the remotest of areas. We are dedicated to empowering local retailers and ensuring that essential digital and financial services are accessible to everyone and everywhere.’’

The report further highlights the growing reliance on and trust in local retail stores to provide essential financial services such as cash withdrawals, deposits, credit, and insurance. Notably, Assam led with an increase in the number of retailers offering financial services and growth in overall transaction volumes at retail stores.

Moreover, the adoption of AePS and Micro ATM services at retail stores in Jammu &Kashmir and Northeastern states further provides a boost to the Government’s vision of a ‘Viksit’ Bharat. While adoption saw over 134% growth in value and 89% in volume of transactions at retail stores in J&K, there was a 31% rise in Micro ATM transactions in the region.

Similar trends are observed in Northeastern states, with Meghalaya witnessing a staggering 1000% growth in AePS transaction value and a 712% increase in transactions. This is followed by Nagaland and Assam, both of which also demonstrated impressive growth in AePS transaction value and the number of transactions. Furthermore, Punjab has witnessed the highest growth in disbursing MSME loans through retail stores, with a notable 29% increase. Insurance disbursals through retail stores also saw a significant uptick, with Kerala and Madhya Pradesh recording 24% and 14% increase, respectively.

Additionally, the report indicates a strong shift towards digital payments with the transactions on UPI QR codes at retail outlets growing by 84%.

The report has been prepared based on transactions across 12 lakhs plus retail touchpoints throughout the country. The findings of the report are based on business data collected for a comparison period, ranging from FY 2023-24 vis-à-vis the corresponding previous financial year.

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