THE REAL COST OF OMNICHANNEL RETAIL IN INDIA: Are Retailers Ready?

Unveiling the double-edged sword of omnichannel retail - balancing customer convenience with operational efficiency in a rapidly evolving landscape.

- NANDINI BANERJEE

O mnichannel retail has become the buzzword in the ever-evolving world of commerce. With promises of elevated customer satisfaction, improved brand loyalty, and unparalleled convenience, omnichannel strategies have become essential for survival in today’s competitive retail landscape. Yet, behind the glittering façade of convenience lies a labyrinth of operational challenges that often remain overlooked. Industry stalwarts like Tushar Ved, President of Apparel Group India, Rajesh Jain, Managing Director and CEO of Lacoste India, Vineet Gautam, CEO and Country Head of Bestseller India, and Naiyya Saggi, Group Co-Founder of Good Glamm Group, share their candid insights into the trials and tribulations of embracing this model. What does it take to master omnichannel retail in a market as diverse and complex as India?

THE ALLURE OF OMNICHANNEL

Theoretically, it sounds like a dream: customers can buy online, pick up in-store, return anywhere, and still feel catered to at every touchpoint. As Rajesh Jain points out, “Omnichannel as a concept is beautiful. It’s good for customer satisfaction and brand reach. However, implementation is an entirely different story.”

Tushar Ved adds, “I am all for omnichannel but I’m not for omnichannel from the retail store!” For brands like Lacoste, Bestseller, and Apparel Group, inventory management is the Achilles’ heel of omnichannel operations. Ved emphasizes that serving e-commerce orders from retail stores disrupts instore customer experience. “You lose focus on the walkin customer when your store becomes a mini-warehouse for online orders.”

Vineet Gautam echoes this concern, explaining how inventory reconciliation can turn into chaos. “Omnichannel demands that your inventory is listed accurately across all platforms. But when your stock is moving between online, offline, and third-party marketplaces, the discrepancies become impossible to track.”