How O2O Commerce Can Revolutionize Indian Retail — by Chitrangana.com

It’s the golden age for Indian eCommerce, especially in the aftermath of the Govt. of India’s new draft ecommerce policy which allows 100% foreign direct investment (FDI) in the marketplace model but prohibits foreign investment in the inventory-based model. The policy is tailor-made for start-ups to sink their teeth into the eCommerce marketplace, and challenge the likes of Amazon and Flipkart.

“However, despite the scales being tipped in their favour, most start-ups are reluctant to venture into the online business. A lot of this foot-dragging is due to the fact that most Indian consumers still prefer the traditional, offline shopping experience, instead of vesting time and energy into technology. A recent study revealed that eCommerce contributes to only 4% of India’s total retail business, giving traditional wholesalers and retailers very little incentive to crossover to the online platform.” — said Mr Vishal Shaha, Senior eCommerce Mentor at Chitrangana.com

O2O Commerce Consultation by Chitrangana.com

“The O2O model is where the two worlds meet, allowing traditional businesses to retain elements of offline shopping, and yet integrate the many benefits of eCommerce. Since 67% of India’s population still resides in rural areas, the time is right for traditional retailers and shop owners to upgrade to the O2O model and overcome the drawbacks of online shopping.” — explained by Mr Nitin Lodha, eCommerce Consultant at Chitrangana.com and the mind to bring first O2O retail brand in India.

What is O2O
O2O (Online-to-Offline) is a commerce model which moves customers from interacting online (via websites, mobile apps, e-mails) to interacting offline (visit the store, test product, talk to retailer). For the last few years, several traditional sellers have used the O2O approach to offer online customers the benefits of offline shopping, which includes testing the product, comparing various products, getting real time product specifications, and human interaction, before finalising an order.

How it works
O2O commerce firms use several techniques which include a) in-store pick-up of items purchased online, b) allowing products purchased online to be returned directly at store and c) allowing customers to place orders online while at the store (using a KIOSK machine or cell phone), among other methods. In India, several traditional retail stores have already made the switch, courtesy the help of Chitrangana.com, the innovators of the O2O business model in India. These traditional retail outlets have been installed with Kiosk LED screens which allow customers to browse products with the aid of multiple images and real time information. Several global O2O commerce players have been innovative with their methods, offering customers voice-based apps, mobile QR codes and instant messaging tools to execute the Online-to-Offline model.

How O2O can transform Indian retail
Industry experts believe Indian customers still prefer personal interaction and real time product specification before making a purchase. The O2O model allows them to research a product online before visiting a physical store to complete the transaction. The model is particularly useful to the technologically-challenged masses that don’t trust online payment methods and prefer touching/testing a product before agreeing to a purchase. Since most of India’s rural population needs assistance with technology, the O2O model can serve every type of customer, be it educated or uneducated. Also, since India encompasses the world’s biggest consumer base, retailers can create product awareness online before enticing customers to visit their stores. This is why O2O model can transform the retail industry.

Why O2O is the solution for traditional retailers
Traditional Indian retailers are strapped with problems aplenty. For starters, they are incapable of expanding the size of the store due to escalating real estate prices. Due to shortage of space, they are unable to maintain a large inventory and thus can’t display a wide range of products. They require significant capital investment to increase inventory or expand their business to new territories via additional branches/outlets. None of these problems can be fixed overnight. However, by adopting the O2O model, they can drive exponential growth to business by maintaining multiple stores, managing stores with fewer employees but a bigger inventory and detailed product information. Since O2O commerce doesn’t require them to maintain mass stock, they can also eliminate Dead Stock or Non-Moving stock without blowing up their profit margins or overhead costs.

For more detail please contact us at https://www.chitrangana.com

Chitrangana.com

India’s Leading eCommerce Consultancy

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