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Indian retail market is one of the fastest growing in the world, and the shopping habits of Indian
consumers are constantly evolving. The Indian retail market is estimated to be worth $2 Trillion by 2030. There are many organised and unorganised retail forms serving diverse consumer bases. There are many key aspects in the Indian market as Market Size and Growth, Organised and Unorganised Retail, E-commerce Growth Regional Variations, Government Initiatives and Regulations, Consumer Preferences and Demographics, and Traditional Retail Formats.
The online retail market is projected to reach $350 billion by 2030.
Food and grocery accounts for the largest share of the retail market, at 65%.
Apparel and footwear account for 9% of the retail market.
Consumer electronics account for 7% of the retail market.
The retail sector is expected to contribute 10% of India's GDP by 2030.
The retail sector employs over 35 million people in India.
The retail sector is expected to grow at a CAGR of 9% from 2019 to 2030.
Changes in the retail market and the behaviour of consumers are changing altogether. An industry
report stated that 90% of customers found new products on YouTube while 64% of Indian customers
have made purchases based on the recommendation of an influencer or an online review. The
COVID-19 pandemic brought an exponential rise in digital adoption and e-commerce across Indian
retail.
According to a recent report by Statista, the following are some of the key trends in shopping in
India:
1. E-commerce: Online shopping is gaining popularity in India. Flipkart, Amazon, and Myntra
are the main online platform in India. These platforms are growing rapidly, offering a wide
range of products, good pricing, and better delivery option. Online shopping is growing
rapidly in India and is expected to account for over 25% of all retail sales by 2025.
2. Mobile Commerce: The use of mobile devices has become so common to browse and shop
online, leading to the rise of mobile shopping apps and optimized mobile websites.
Examples of m-commerce include in-app purchasing; mobile banking virtual marketplace
apps, such as the Amazon mobile app; and digital wallets, such as Apple Pay, Google Pay,
and Samsung Wallet.
3. The growing demand for personalized products: Indian consumers are demanding more
personalized products and services which are very specific to their demands. The reason
behind this trend is the availability of clients’ data, great marketing technologies, and clients'
demand to feel unique.
4. Sustainable and Ethical Shopping: Nowadays people are more concerned about the
environment and its sustainability. People are looking for more sustainable options.
Shoppers are increasingly shifting to eco-friendly products. This trend is introducing more
space for sustainable fashion, organic products, and socially responsible brands. Even brands
like Myntra and H&M has created a separate space for sustainable clothing line.
Adopting energy-saving lighting solutions has seen a surge, such as LED lights, which are not only
ecological but also save up to 80% on electricity.
5. Hybrid shopping -With experiential retail, brands can offer unique and cutting-edge experiences
on their online channels and in-person. The primary objective of experiential retail is to create a
community around the brand, increase engagement, and curate unique experiences that add value
to the customers. While doing so, brands need to reconsider how using physical stores can enhance
and streamline the customer experience throughout the entire purchasing process. According to a
Shopify survey, 32% of consumers are more inclined to engage with in-store experiential moments.
Another study found that 45% of Indian consumers browse online yet make offline purchases.
More companies are increasingly providing experiential brand outlets so that buyers can interact
physically with products before making high-end purchases.
In the Indian retail market, there is wide space for International brands. There is few campaigns are
going on to promote Indian brandsThe “Make in India” campaign has gained significant traction, and the Indian government has urged businesses with Indian roots to be “Vocal for Local.” Local products have gained consumer preference, helping Indian brands become self-sufficient in the future. Consumers have expressed a desire for home-grown products, enabling Indian brands to become self-sufficient in the future.
By introducing large-scale manufacturing to India, the PLI initiative, spearheaded by Prime Minister
Modi, is presenting chances for the nation in terms of fostering economic growth and generating
more job opportunities. Such government programs will surely aid domestic companies in increasing
their manufacturing capacity and boosting exports. It is now a good time for the industry as a whole
to become self-sufficient and produce high-quality products that can compete internationally.
We are living in the new generation of technology that is bringing modern trends:-
The metaverse – Many brands are entering into the virtual real me of the metaverse, and
augmented reality and virtual reality are gaining a great customer base. A McKinsey report notes
that the metaverse may touch a valuation of $5 trillion by 2030. Of this, up to $2.6 trillion could
come from e-commerce. Many brands are already probing the possibility of a metaverse presence,
partly driven by FOMO (fear of missing out).
A Forbes report believes AR/VR will witness global spending of $72.8 billion in 2024. These
immersive technologies will be used by brands to enrich the experiences of consumers.
Importance of Gen Z and Millennials: Importance of Gen Z and millennials: Nationally and globally,
Gen Z and millennial cohorts are attracting higher interest as consumers from these generations are
tech-savvy, unlike Gen X people. One way of meeting the aspirations of tech-savvy buyers especially
is by providing easy online finance and payment options such as BNPL (buy now, pay later), BOPIS
(buy online, pick up in-store) as well as OR codes and UPI-linked payment options for online and
offline deals.
The significance of young consumers for retail brands is highlighted by Nokia's 2022 Mobile
Broadband Index report, which reveals that India's Gen Z users devote an average of eight hours
online daily. Moreover, 90% of them are inclined to view content in the local language. Such
customers only buy items after researching them online and prefer connected shopping journeys as
well as easy, speedy, seamless purchase modes offering convenient payment options.
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