Offline retail remains remunerative in a disruptive online world

While online is the disruptive buzzword, offline still rules the roost, according to experts speaking at the two-day Phygital Retail Convention 2025 organized by the Images Group.

“Online is a matter of discount in India,” said Kumar Nitesh, CEO – Ajio Business, Trend Footwear – Reliance Retail indicating that margins are much better offline. Average online business is 25%, experts at the panel discussion said beyond, which can drive valuations, but bottom-line bleeds and rest on the offline business.

Earlier in the day, talking about profitability, P Senthilkumar, Senior Partner, Vector Consulting indicated that fast moving trends in fashions in India is leading to high gross working capital and in turn low inventory turnover.

The long lead time to forecast a trend is leading to inaccuracy in predicting demand as product lifecycle is getting limited to four months, Senthilkumar said, “What was sold in the previous session is no more relevant in the next season in a fast paced industry with changing demand profile,” he said.