Post Covid, many Indian ecommerce fashion brands are showing interest in the offline market, often referred to as ‘Brick-and-Mortar (B&M)” or “Offline retail.”
There is a combination of factors and potential benefits that fashion brands foresee some of which are as follows
1. Market Size
Although the Indian offline apparel market is dominated by the unorganized players (with 60-65% market share), the organized B&M is expected to grow at almost 18-20% (faster than ecommerce or unorganized retail) over the next 2-3 years to reach an estimated market size of USD 25 Billion by 2025. Too big a market opportunity to miss!!
2. New product introduction
B&M store allows brands to experiment with new products and categories. At times, online fashion brands find it difficult to launch a premium product line because the customers are hesitant to buy expensive clothing without trying them on. B&M store allows customers to touch and feel the fabric and assess the size-fit.
3. Brand visibility
Offline retail provides an opportunity for ecommerce brands to increase their brand visibility and reach a broader audience, including those who may not be as comfortable or familiar with online shopping.
4. Winning customer confidence
Having a physical presence can help build trust and credibility, especially for newer or lesser-known ecommerce brands. Physical stores can instill confidence in customers who may be hesitant to shop online due to concerns about product quality, authenticity, or security.
5. Better stock rotation
A B&M store allows for better stock rotation through instore offers and discounts. Brands are often surprised to find some of the products not doing well online selling extremely well offline
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