India’s retail landscape is undergoing a seismic shift, with quick commerce (Q-commerce) rewriting the rules of consumer shopping behavior. A recent PwC India report reveals that Q-commerce has surged by 280% in just two years, leading to a 52% drop in sales for local stores selling essential goods. While digital retail is dominating metro markets, brick-and-mortar retailers, especially in Tier 2 and 3 cities, are holding their ground by leveraging hyper-local strategies and deep-rooted customer relationships.
Omnichannel is No Longer Optional
The data speaks for itself—77% of Indian shoppers now prefer an omnichannel experience, seamlessly blending online research with in-store purchases. This consumer behavior underscores an urgent need for retailers to integrate digital touchpoints into their sales strategies. While 60% of traditional retailers view e-commerce as a threat, 27% have already adapted, using digital tools to enhance customer engagement and retention. The message is clear: Adapt or risk obsolescence.
Q-Commerce: A Double-Edged Sword
Quick commerce’s rapid growth has not been without consequences. The report highlights a 28% decline in foot traffic for physical stores in metro cities, with categories like food, beverages, and personal care witnessing the steepest declines. However, Q-commerce is facing hurdles in smaller cities, where fragmented demand and high delivery costs limit profitability. This presents a unique opportunity for local retailers to counteract digital disruption by enhancing their service offerings—personalized shopping experiences, doorstep delivery, and in-store exclusives.
The Future is Hybrid: Striking the Right Balance
Despite the rise of digital-first shopping, physical retail still holds its ground for certain segments. Consumers continue to prefer tactile experiences for fresh produce, home care products, and high-value electronics. The retail industry is clearly heading towards a hybrid model, where success will depend on brands’ ability to optimize their channel mix, pricing strategies, and customer engagement initiatives.
Navigating the New Retail Era
For traditional retailers, the roadmap is straightforward but urgent:
- Digital Integration: Retailers must leverage online channels for discovery while maintaining personalized offline interactions.
- Experience-Driven Retail: Creating exclusive in-store experiences can be a strong differentiator against Q-commerce.
- Policy Awareness: With 64% of retailers calling for fairer government policies on delivery and logistics, there is a need for better awareness especially regarding initiatives like ONDC, which only 4% of retailers currently know about.
The Indian retail sector is not fading it is evolving. Q-commerce and e-commerce are not the end of traditional retail but rather a wake-up call. Brands that strategically adopt a hybrid approach merging online convenience with offline experiences will be the ones that thrive in this ever-changing landscape. The key is not just selling products but creating compelling, seamless consumer journeys.
