3 Major Retail Growth Trends In India

The retail industry in India has gone through tremendous change in recent years. The year 2022 noted that the Indian retail industry was heavily dominated by the unorganized sector which accounted for 81% of the market. However, the organized retail sector has been growing at a rapid pace, fuelled by technological innovations and a customer-centric approach.

Due to the growing income and purchasing power of Indian consumers, their purchase patterns are changing quickly. This is driving a rapid increase in the adoption of advanced technology and investment in infrastructure by retailers in order to meet shifting consumer demand.

Rapid growth in organized retail can also be attributed to a growing number of individuals moving to metropolitan regions as the country urbanizes at a fast pace. It is expected that infrastructural development will continue to grow leading to the building of new malls and retail locations which increases the scope for growth of the organized retail sector. Increased internet penetration in the country has also led to a rise in rural consumption and increase in digital payment modes which are impacting consumer behaviour.

Retailers have started adapting to new shopping paradigms to better engage with their customers, enhance their experience and earn their loyalty while also ensuring better speed, time and cost efficiency for their businesses. As such, increasingly retailers are focusing on three major facets of growth by ensuring a more efficient, resilient and agile supply chain for the future.

Technology Integration spurs growth in for retailers in India

This is one of the most important and more experimented growth trends in the retail industry in India. While the adoption of technological tools has been underway for quite a while in the retail industry, it’s scale rapidly expanded over recent years as businesses sought innovative technologies to gain a competitive edge in the market.

Retailers in India are increasingly focusing on providing personalised shopping experiences to their consumers through omnichannel strategies exploring 3 trends:

• cashless and contactless digital payment modes
• hyperlocal marketing campaigns
• customized communications and offers.

The implementation of contactless payments skyrocketed during the pandemic and continue to be a favoured means of transaction both for retailers and for consumers due to its ease and convenience. For consumers, the presence of self-checkout kiosks and contactless payments allows for a better and quicker shopping experience. Whereas for retailers, it allows them to eliminate long checkout lines allowing them to process more shoppers quickly and efficiently, thus increasing their sales and revenue. Integration of advanced technology enables retailers to ensure protection of their consumers data and also provides them with increased visibility and tracking of their inventory and income.

The integration of digital tools into visual merchandising, such as the use of artificial intelligence (AI) and data analytics, is also becoming a key trend in the retail industry in India, as it can enhance consumer engagement and improve their overall shopping experience. Hyper localization, a strategy that involves tailoring products, services and marketing campaigns, helps retailers to provide consumers with a more relevant and more personalised shopping experience. Through data collection and analysis, retailers can ensure that they maintain stock of products that are consistently preferred by customers and offer services such as discounts, cashback programs and more that help them increase their profitability and competitiveness in the market. Retailers are also adopting personalization strategies to help them communicate more relevant information on product recommendations and offers to their customers through multiple channels. These strategies help retailers to retain their consumers by increasing their satisfaction and loyalty.