A significant change has occurred in shopping patterns with the rise of the digital-first economy. The convenience of online marketplaces has made it easy for the consumers to compare, click, and buy at the lowest prices - which the traditional brick-and-mortar retailers can hardly match. The e-commerce websites such as Amazon and Flipkart have, on one hand, provided greater access and convenience to the people while, on the other hand, it has also created a major challenge for India’s offline retail market, which continues to struggle with dwindling sales and thinning profit margins.
Retail disruption has opened up the management students and future business leaders to critical insights into consumer behaviour, pricing strategy, and digital transformation - areas that are the core of the PGDM in Marketing program at IES MCRC, one of the top management schools in Mumbai.
The greatest advantage of e-commerce is its ability to offer different prices and reach out to more customers. The online sellers use Big Data, scale, and efficient logistics to give the customers steep discounts that are sometimes even lower than their production cost during the mega sales like Big Billion Days or Amazon Prime Day.
The customers, who have got used to getting bargains and enjoying the convenience of online shopping, now want discounts all the time. This has resulted in offline stores being stuck in a situation where they can’t compete due to their high overheads (rent, staff salaries, stock etc.) which further prevents them from lowering their prices to online levels.
This trend, termed the "discount trap," has resulted in the switching of the consumers’ loyalty - from shopping based on the brand's popularity to purchasing according to the best deals.
India's retail market, which is among the largest in the world, worth over $900 billion, is experiencing a significant redistribution of demand. (1)
While e-commerce makes up roughly 8–10% of total retail, its influence far exceeds its share. Categories like fashion, electronics, and beauty have seen up to 30–40% of customers migrate online, especially in metro and Tier 1 cities. (2)
For offline retailers, this means:
Even well-known retail chains are rethinking their strategies, shifting towards omnichannel models that combine both online and offline experiences.
Students looking to get an MBA or PGDM in Marketing, Retail, or Business Strategy should make it a point to get an understanding of this digital shift as it is very important. Today's retail environment needs the following talents from professionals:
At IES MCRC, students can engage in case studies, industry projects, and live simulations to tackle real-world business problems, thus, preparing them for the leadership roles in the fast-evolving market.
Even though the offline retail is having a hard time, it is not going away. Bear in mind, the most successful brands are the ones that combine digital efficiency with personal touch - the best of both worlds.
The retailers are regaining their relevance with the help of concepts like Click-and-Collect, experience-based showrooms, and AI-driven customer personalisation.
For instance, businesses of fashion like Zara and Nike are pouring money into interactive stores, which are a mix of technology and physical experience, thus, drawing emotional attachments that online-only places cannot reproduce.
Understanding the digital and physical customer journey will be the key to retail success in the future, and management schools are crucial in producing such leaders ready for the future.
The struggle of online prices slash and offline sales is not merely a market transition - it is a management lesson in adaptability, innovation, and consumer behaviour understanding.
For future managers, the above-mentioned scenario, particularly the one at IES MCRC, one of the top management colleges in Mumbai, makes it imperative to think strategically, accept technology and create new ways of customer engagement.
The retail tale is still unfolding - it just moves to a different part. And the future managers will be the ones to pen down the story.
