Omnichannel: Bringing the World to Rural Doorsteps

Imagine someone living on the rural outskirts of Ludhiana, Punjab, surrounded by vast fields, needing to visit the nearest mall. The thought of a 45-minute drive through heavy traffic to shop can be daunting.

Fortunately, the rise of omnichannel retail has transformed this experience. Now, even those in remote locations can combine the ease of online browsing with the reliability of in-store service. Instead of enduring long commutes for items like a pressure cooker, customers can quickly check product availability and features online and either opt for delivery or use the “Buy Online, Pick Up in Store” (BOPIS) feature.

This way, they can skip the hassle of long trips and get exactly what they need with minimal effort, enjoying the best of both worlds.

What’s fueling this significant shift?

Key factors driving this shift include increased internet penetration, smartphone adoption, government initiatives, rising consumer demand, e-commerce growth in rural markets, and the allure of social media and influencers.

Now, let’s dive into how two major players are tapping into rural India’s booming internet connectivity and growing e-commerce potential.

Case study 1: Meesho’s Strategic Expansion into Rural Markets with Laser Focus

Meesho’s strategy aligns with India’s growing rural e-commerce. With 53% of internet users in rural areas, and 60% of Meesho’s 2023 sales from rural and smaller cities, the retailer is determined to tap into the underserved markets. By offering low-cost products to price-sensitive consumers, it leverages rising internet penetration and government initiatives, expanding its customer base and strengthening its competitive position in e-commerce.

Meesho’s initiatives to penetrate rural areas:

• Vernacular language support: Meesho added several regional languages, including Bengali, Telugu, Marathi, Tamil, and others, to onboard and retain sellers from non-English speaking regions.
• Zero commission & 7-day payments: Meesho introduced zero commission and fast payment initiatives to help rural sellers enter the platform with ease.
• Collaboration with logistics partners: Partnered with regional leading logistic players like DTDC, Loadshare, Elastic Run, Shadowfax, Ecom Express, Delhivery, and Xpressbees for last-mile delivery in rural India, improving accessibility.
• Support for government initiatives: Meesho aligns with the National Logistics Policy, Make in India, and Production-Linked Incentives (PLI) schemes to help rural sellers.
• Category diversification: Meesho offers a wide range of low-cost products, including fashion, home & kitchen, and electronics, which appeal to rural consumers, driving demand in those areas.
• Democratization of e-commerce: Meesho ensures a level playing field for small sellers, not differentiating by tier, fostering inclusivity across regions.

Case study 2: How Lenskart is leveraging internet penetration to build an omnichannel empire

Of the 550–600M people in need of vision correction in India, only around 170M currently wear glasses, with many others possibly unaware of their need. This presents a vast opportunity that Lenskart aims to seize. A significant portion of this untapped market lies in rural areas, which has shaped Lenskart’s current strategy.

The company is focusing on two key areas: Manufacturing and expanding access in the rural markets. These efforts have seen substantial investments in both capital and talent. To enhance its reach, Lenskart has embraced an omnichannel approach, expanding from its online origins into physical stores, even in smaller towns and remote areas.

By offering services like eye tests and personalized frame fittings at its stores, Lenskart makes it easier for customers to experience the brand firsthand. For rural consumers and those in city outskirts, the company provides a “try at home” option, allowing customers to choose frames online and have them delivered for a home fitting before purchasing.

Lenskart is bridging the digital divide, leveraging rural connectivity and government initiatives to bring personalized services to even the most remote areas, ensuring greater access to its products across India’s rural markets.

But is penetrating India’s untapped rural goldmine as easy as it seems?

Not really!

Let’s look at some of the challenges one may face while serving the outskirts and the rural India

The omnichannel model relies on coordination between brands and local couriers to ensure timely and dependable deliveries to remote areas. Despite its opportunities, omnichannel retail faces challenges in serving the rural population like:

• Internet Service Inefficiency: Unreliable Internet hinders e-commerce growth and access in rural India.
• Trust Deficit: Rural customers distrust online products due to concerns about damage, theft, and returns.
• Logistics and Infrastructure: Inadequate rural infrastructure complicates warehousing, distribution, and last-mile delivery.
• Payment Complexity: Lack of awareness regarding digital payment, UPI, COD, and credit card usage disrupts smooth e-commerce transactions.
• Adaption Inertia: Reluctance to transition/adapt e-commerce shopping to their daily lives.
• Personalization Difficulty: Preference for physical verification of products before purchase.
• Back-end inventory/tech investment: Accurately reflecting inventory across online platforms and physical stores demands investment in technology and effective communication between brands, retailers, and delivery services.

The Future of Omnichannel for Rural India

Although India ranks among the best countries to invest in retail space, Indian rural market is still vastly untapped. Key factors making India an attractive market include its position as the world’s second-largest population, substantial e-commerce growth from the middle-income segment, rising urbanization, increasing household incomes (in all categories), digitally connected rural consumers, and growing consumer spending.

For rural Indian consumers, omnichannel retail signifies a new shopping era that transcends proximity to malls or large stores. The combination of online convenience and reliable physical stores has created new opportunities for many.

As India’s retail market evolves, retailers investing in omnichannel strategies will be better positioned to meet the needs of a growing consumer base. Through data insights, efficient inventory management, and local partnerships, brands can offer personalized, convenient shopping experiences nationwide.

Conclusion: A Shopping Revolution for Those Beyond the City

What was once a time-consuming journey from one shop to another in search of the right product is now increasingly becoming simpler. Consumers can now experience products firsthand through physical stores and make informed decisions, later placing orders online with ease.

For CPG and FMCG companies, this shift presents valuable opportunities. By partnering with retailers or creating immersive product demos, they can simplify the consumer’s decision-making. After experiencing the product firsthand, one can easily place orders through e-com platforms, blending convenience with informed choice.

This shift opens significant investment opportunities for retailers. While pure-play e-commerce has faced challenges in reaching certain markets, the omnichannel approach allows them to deliver modern, convenient shopping experiences like never before—whether in the bustling streets of New Delhi or the serene outskirts of Punjab.