A decade ago, the industry had predicted the death of the local kirana. Turns out, the small neighbourhood stores continue to stay relevant, despite increased competition from e-commerce. So says the recent Retail 4.0: Winning the 20s report by BCG and RAI. In fact, the Indian retail market is estimated to reach $1.1–1.3 trillion by 2025, with private consumption here likely to outperform that of developed countries. What drives the Indian consumer to pick up a product and toss it into the shopping cart? For one, it is the ‘value’ of an offering — the kind of features available and the price. Additionally, it is the need for convenience, the extent of personalisation, trends and an increasing bias towards healthy living. While the report finds that a significant portion of Indian retail continues to be fragmented, it states that the top retailers can increase their market share from the current <5% to 10-12% over the next decade. But, this would require retailers to evaluate business models regularly, expand networks and build partnerships. The consumption story may look weak now but the reports points to an opportunity for the big players. Will they grab it?
The future of Indian retail industry, in numbers
With changing consumer habits, Indian retail is geared for a bright future ahead
Published 4 months ago on Apr 01, 2020 • Read