90 pc Of Indian Retailers Favour Physical Stores: Study

New Delhi, Dec 6 (KNN) A comprehensive study by NeoGrowth has uncovered significant insights into the retail business practices across different generations in India, revealing a persistent preference for physical store locations among retailers. 

The research, titled 'Unlocking Generational Preferences among Indian Retailers', surveyed nearly 3,000 Micro, Small, and Medium Enterprises (MSMEs) across more than 25 major Indian cities.

The study discovered that approximately nine in ten retailers across all age groups—young (18-40 years), middle-aged (41-50 years), and experienced (over 50 years)—continue to favour traditional brick-and-mortar retail models. 

Specifically, 96 per cent of experienced retailers and 89 per cent of both middle-aged and younger business owners prefer selling through physical stores, indicating a robust commitment to in-person retail experiences.

Arun Nayyar, Managing Director and CEO, NeoGrowth, emphasised the critical role of MSMEs in India's economic growth. 

"While Indian retailers are increasingly integrating digital tools to enhance shopping experiences, the majority still value the personal connection afforded by physical storefronts," he stated. 

This approach reflects a nuanced strategy of maintaining traditional customer engagement while simultaneously embracing digital innovation.

The research highlighted interesting generational variations in business strategies. Notably, 58 per cent of younger retail business owners leverage social media platforms to generate business, demonstrating an adaptive approach that balances digital outreach with physical retail presence. 

Customer acquisition strategies also show generational differences, with 78 per cent of experienced retailers prioritizing referrals and 58 per cent of middle-aged retailers focusing on improving their physical store environments.

These findings underscore a broader narrative of Indian retailers' commitment to customer-centric approaches. 

By combining traditional relationship-building techniques with selective digital integration, retailers are positioning themselves for sustained growth in an evolving market landscape. 

The study suggests that while technology continues to transform business practices, the fundamental value of personal interaction remains paramount in the Indian retail ecosystem.

(KNN Bureau)