Digital-First Brands Shift Focus to Offline Retail as Indian Consumers Continue to Favor Brick-and-Mortar Stores

India's New-Age Consumer Brands Shift Focus to Offline Retail

Key Takeaways

• India's new-age consumer brands are increasingly leaning into offline retail, with physical stores remaining essential for scaling businesses.
• Founders from Purplle, Atomberg, and The Whole Truth discussed the importance of omnichannel businesses during a panel discussion at Moneycontrol's Global Wealth Summit in Mumbai.

Digital-First Startups Evolve into Omnichannel Businesses

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Founders from India's new-age consumer brands are shifting their focus from online-only to omnichannel businesses. Arindam Paul, founding member of Atomberg, stated that most Indian consumers still prefer to buy offline, making it essential for businesses to be present in offline channels to reduce acquisition costs. According to Paul, around 70% of Atomberg's business comes from offline channels, despite generating much of its demand digitally.

Purplle's Offline Business Expands Rapidly

Manish Taneja, founder and CEO of Purplle, revealed that the company's offline business is growing 400-500% year-on-year. Purplle operates around 180 stores across India, with a strong presence in Kerala and West Bengal. The company plans to open 25 new stores this month, including 13 in Kerala and 10 in West Bengal.

Offline Retail Drives Profitability

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Founders from Purplle, Atomberg, and The Whole Truth emphasized that offline-heavy businesses tend to enjoy stronger profitability dynamics compared to online-only brands. Arindam Paul stated that offline retail gives brands more power, as there are tens of thousands of retailers selling the product, whereas online channels shift power to platforms.

Building Trust with Informed Consumers

Shashank Mehta, co-founder and CEO of The Whole Truth, highlighted the importance of building trust with informed consumers. Mehta stated that modern consumer brands must move away from the traditional playbook followed by legacy FMCG companies and instead communicate with consumers as intelligent people, telling them the whole truth.

Conclusion

India's new-age consumer brands are shifting their focus to offline retail, recognizing the importance of omnichannel businesses in scaling their operations. By mastering the balance between digital discovery and physical retail experience, these brands are likely to achieve success in the competitive Indian market.