Synopsis
A recent report reveals that India's retail sector is set to surpass $1.6 trillion by 2030, with the organised retail segment projected to exceed $600 billion, capturing 35% of the total market. The growth will be driven by both essential and discretionary spending, alongside efforts to address market inefficiencies.Key Takeaways
- India's retail sector is on track to exceed $1.6 trillion by 2030.
- Organised retail is projected to reach $600 billion and 35% market share.
- Discretionary spending is driving the next phase of growth.
- 350 Indian brands have crossed the $100 million revenue mark.
- Regional and unbranded brands will make up over 70% of the market.
Bengaluru, March 26 (NationPress) India’s overall retail landscape is on track to exceed $1.6 trillion by 2030, presenting significant opportunities for growth in the organised retail sector, as outlined in a recent report released on Wednesday.
While essential categories will dominate the spending, the next phase of growth is expected to be driven by discretionary purchases, according to the findings from Redseer Strategy Consultants.
Both offline and online organised retailers are actively addressing market inefficiencies through enhanced sourcing methods, advanced technological applications, and innovative infrastructure.
Consequently, organised retail is anticipated to evolve into a segment exceeding $600 billion by 2030, accounting for over 35 percent of the overall retail market, the report emphasized.
In the face of regional diversity, price sensitivity, and intricate supply chains, 350 Indian brands have surpassed the $100 million revenue milestone.
Nonetheless, the supply chain remains fragmented and is likely to continue as such, with regional and unbranded labels projected to comprise over 70 percent of the market by 2030, the report indicated.
“To scale effectively, organised retail models must also cater to regional and unbranded consumption, in addition to the traditional branded segments,” stated Kushal Bhatnagar, Associate Partner at Redseer Strategy Consultants.
Offline and online players are employing various strategies, including backward integration, private labeling, and supply aggregation, to seize this opportunity, he noted.
The diverse consumer preferences in India have resulted in an extensive range of stock-keeping units (SKUs), highlighting supply fragmentation.
India’s culture, languages, and tastes shift every few kilometers, leading to a high proliferation of SKUs across categories such as snacks, spices, food grains, apparel, jewelry, and home décor.
A significant percentage of consumers prefer small-ticket transactions and prioritize affordability in their purchasing decisions, according to the report.
Numerous unorganised intermediaries exist in both sourcing and distribution, complicating efficient supply chain management.
General trade (GT) has flourished due to its accessibility, capacity for small transactions, and strong integration with local supply chains, effectively meeting hyper-local consumer preferences, the report detailed.
