Indian retailers embrace innovation while valuing tradition

NeoGrowth’s NeoInsights Study highlights that 77% of Indian retailers plan to diversify by expanding products, markets, and channels, while 87% are open to adopting innovative strategies to enhance capabilities. Despite digital integration, 96% of experienced and 89% of younger retailers still prefer physical stores, emphasizing traditional customer connections.

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NeoGrowth’s NeoInsights Study, titled Unlocking Generational Preferences among Indian Retailers, reveals that 77% of retailers aim to diversify their businesses by expanding product lines, entering new markets, and exploring different sales channels. Additionally, 87% are open to adopting innovative opportunities to strengthen their capacities and capabilities. The study, which surveyed nearly 3,000 MSMEs across 25+ cities in India, highlights generational differences among retail business owners.

A significant finding shows that 96% of seasoned, and 89% of younger and middle-aged business owners, prefer operating through physical stores. This demonstrates a continued reliance on traditional retail, despite growing digital integration. According to NeoGrowth’s Managing Director and CEO, Arun Nayyar, Indian retailers are adeptly merging digital tools with conventional practices to enhance customer experiences. He describes this approach as a blend of traditional values and modern advancements that resonate with current consumer expectations.

Profitability and growth motivate 50% of retailers to start their businesses, while 25% credit prior industry experience. Indicators of success include meeting family aspirations (50%), repeat or referral customers (48%), and employee development (42%). Social media plays a crucial role for 58% of young retailers in driving business growth.

The report also reflects optimism about India’s business environment, with three-fourths of respondents affirming its conduciveness. Among experienced retailers, this optimism peaks at 86%. More than half of the respondents are leveraging government programs like Make in India and Digital India to enhance infrastructure and digital capabilities. Referrals are the primary customer acquisition strategy for 78% of experienced retailers, while 58% of middle-aged retailers focus on improving physical storefronts.

This comprehensive study underscores the evolving yet resilient nature of Indian retail, combining tradition with innovation to meet the demands of an ever-changing market.