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The State of Omnichannel Retail in India: Trends, Growth, & Consumer Shifts

Explore how omnichannel retail in India is evolving with shifting consumer behavior and rapid ecommerce growth.

By

Capillary Marcom

4 Min Read

February 21, 2025

Omnichannel retail in India has moved far beyond buzzword status, it’s now a strategic imperative. As the lines blur between digital and physical retail, consumer expectations continue to rise. From redefining shopper journeys to driving better ROI across channels, brands in India are embracing omnichannel strategies to stay relevant in a hyper-connected market.

 

With India’s ecommerce market among the fastest-growing in Asia and consumer behavior shifting toward mobile-first and multi-channel journeys, the stakes are higher than ever.

 

In this blog, we unpack omnichannel retailing examples in India, explore what “omnichannel retailing” really means in today’s context, and highlight the key drivers behind this transformation, from webrooming trends to the rise of Gen Z shoppers.

 

What Does Omnichannel Retail Mean in India?

 

 

Omnichannel retail in India can mean different things to different businesses. For some, it’s about offering a mobile app alongside a physical store. For others, it’s about connecting offline and online inventories or enabling doorstep returns for items bought in-store. But at the heart of it, omnichannel is about offering customers a seamless shopping experience, regardless of where they begin or end their journey.

 

In India’s diverse retail environment, this seamlessness becomes even more critical. A customer might browse products on a brand’s Instagram page, check availability on the website, and then walk into a nearby store to complete the purchase. Or they might visit a mall, try something on, and choose to buy it later from the app. True omnichannel retail recognizes this fluidity and aims to remove the friction that typically exists between channels.

 

India’s Retail Landscape: Then vs Now

 

India’s retail sector has undergone a dramatic shift in the past decade. What was once a market dominated by unorganized retail and traditional formats is now steadily moving toward organized, tech-enabled experiences. In 2016, modern trade accounted for only a small slice of the retail pie, but that slice has grown significantly with the rise of ecommerce, mobile adoption, and digital payment infrastructure.

 

Today, retailers are not only building stronger digital storefronts but are also rethinking how their physical spaces fit into the larger customer journey. Store formats have evolved, and many are now playing a dual role: as both brand experience centers and as fulfillment hubs for online orders. This shift reflects how omnichannel retail in India is gaining ground, especially as consumers grow more comfortable toggling between platforms while expecting speed, convenience, and consistency.

 

Key Drivers of Omnichannel Growth in India

 

Omnichannel retail in India is not growing in isolation. It’s being propelled by a unique mix of consumer evolution, technology adoption, and market-level shifts that are reshaping how people discover, engage with, and purchase from brands. Let’s look at the key forces driving this change.

 

Understanding the Indian Target Market

Retailers today are catering to a far more segmented and complex customer base than ever before. India’s retail market includes everything from affluent, urban digital natives to price-conscious, semi-urban families who may only recently have come online. This diversity calls for flexible engagement models and a sharp understanding of how different customer segments behave across platforms.

 

Omnichannel strategies work best when they are informed by local nuances. A brand’s app might perform better in Tier 1 cities, while WhatsApp or assisted shopping could be more relevant in smaller towns. Recognizing these behavioral shifts at a granular level is key to crafting customer journeys that convert.

 

 

Digital Shifts in Indian Consumer Behavior

Digital shopping has moved from occasional activity to a regular part of daily life for Indian consumers. According to recent trends, a significant portion of online shoppers in India now buy more than once a month, with many shopping weekly and even daily.

 

This frequency speaks volumes about the growing trust in ecommerce platforms and the rising comfort with digital payments and deliveries. 43% of consumers shop online at least once a week across all ecommerce channels, and 10% report making purchases daily or more. When looking specifically at Amazon, 68% of users shop more than once a month, with 35% making purchases at least once a week.

 

For omnichannel retailers, this presents both an opportunity and a challenge. The more frequently customers shop, the higher their expectations for speed, relevance, and consistency across every interaction, whether it’s on an app, a website, or in a store. Meeting these expectations requires integrated systems, agile fulfillment, and a sharp focus on customer experience design.

 

Source: Jungle Scouts Consumer Trends Report Q1 2024

 

Webrooming vs Showrooming in Indian Retail

The Indian shopper is no longer bound to a single touchpoint. Many browse online before buying in-store (webrooming), while others check out a product in-store only to complete the purchase online later (showrooming). These behaviors are a pattern now, and brands need to be equipped to handle both.

 

Added to this is the growing tension between marketplace presence and building direct-to-consumer (D2C) platforms. While marketplaces offer reach, they often limit control over experience and data. A robust omnichannel strategy helps brands bridge this gap, offering the scale of marketplaces with the personalization and control of a D2C model.

 

Challenges and Considerations for Indian Retailers

 

While the case for omnichannel adoption is strong, implementation comes with its share of challenges. Many Indian retailers still operate with fragmented systems, making it difficult to unify customer data or manage real-time inventory across channels. Without this integration, creating consistent experiences becomes a tall order.

 

Another key consideration is organizational readiness. Building an omnichannel strategy requires cross-functional collaboration across marketing, operations, logistics, and frontline staff. Retailers also need to strike the right balance between driving immediate ROI and investing in long-term customer relationships through smarter loyalty programs and experience-led differentiation.

 

The retailers who succeed will be the ones who view omnichannel as a transformation effort, not just a digital upgrade.

 

Conclusion: Navigating the Omnichannel Opportunity in India

As omnichannel retail in India continues to mature, brands that can seamlessly unify offline and online experiences will lead the next wave of growth. From understanding the meaning of omnichannel retailing to applying it through localized strategies, the focus must now shift to integration, personalization, and long-term customer engagement.

 

The trends clearly show that India’s retail landscape is expanding, customer expectations are evolving, and ecommerce adoption is accelerating. By leaning into omnichannel solutions that adapt to India’s unique consumer behavior, businesses can unlock new growth opportunities, improve customer loyalty, and stay competitive in a rapidly shifting market.

 

Want to go deeper into the tech, data, and operational building blocks that support omnichannel retail in India?

 

Read Part 2: Omnichannel Enablement and Technology Challenges

 

Want to take your loyalty program to the next level? Talk to our experts today!

 

 

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Capillary Marcom

Capillary Technologies is an AI-powered loyalty platform for enterprise brands. Capillary Marcom is the official handle for Capillary's marketing and communications team. Write to marcomm@capillarytech.com for more information.

Capillary Technologies is an AI-powered loyalty platform for enterprise brands. Capillary Marcom is the official handle for Capillary's marketing and communications team. Write to marcomm@capillarytech.com for more information.

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