India Retail Market

India Retail Market Size:

India retail market size is projected to exhibit a growth rate (CAGR) of 13.90% during 2024-2032. Some of the main factors influencing market expansion include income growth, urbanization, digital adoption, increased consumer spending, reforms with the Government of India, the rise of the middle class, growth of e-commerce, infrastructural development, foreign investments, and a trend where consumers prefer branded merchandise.

India Retail Market Analysis:

• Major Market Drivers: The main factors behind the growth in the retail market of India include rising disposable income, growing urbanization, and increased digital adoption. In confluence with this, a growing middle class, along with good governmental reforms and infrastructure development, has led to a major rise in consumer expenditure, bolstering the India retail demand.
• Key Market Trends: The rapid expansion of e-commerce, driven by convenience and digital payment adoptions, and the movement toward organized retail with an increase in disposable incomes and urban lifestyles are the key trends shaping this market. Besides this, consumer behavior is increasingly being influenced through digital and social media and influencing purchase decisions and marketing strategies, which is further contributing to the market growth.
• Geographical Trends: Rapid urbanization and consumption of luxury items are propelling North India retail market, while West and Central India have emerged with strong demand due to industrialization and tourism. In addition to this, South India’s technological base and IT sector growth are aiding in market expansion. Whereas, East and Northeast India have seen increasing retail action on account of infrastructure development coupled with rising consumer affluence.
• Competitive Landscape: The competitive landscape of the market has been examined in the report, along with the detailed profiles of the major players operating in the industry
• Challenges and Opportunities: The retail market in India faces several significant challenges, including competition from both domestic and international players, infrastructural bottlenecks, and shifting regulatory policies. However, the sector also presents opportunities for growth and differentiation, driven by the expansion of e-commerce, the emergence of innovative retail formats, and increasing consumer demand for personalized and sustainable products.

India Retail Market Trends:

Rapid Expansion of E-Commerce

The growth of e-commerce in India has been upward, supported by increased internet penetration, smartphone usage, and digital literacy. Online shopping websites as well as niche ecommerce portals have changed the way people buy. The trend, though it is concentrated more in the urban areas, is fast reaching tier-2 and tier-3 towns where varieties were normally limited. The convenience of shopping from home, competitive pricing, a wider range of products to choose from, and offering fast delivery options have considerably helped grow the pace of e-commerce. The opening of digital payment methods, including UPI and mobile wallets, together with increasing confidence among people in online transactions, added more pace to it. The e-commerce boom also prompted many brick-and-mortar retailers to move toward an omnichannel approach whereby both online and offline shopping experiences meet the changing tastes of consumers, boosting India retail market share.

Increasing Presence of Organized Retail

The retail industry in India has traditionally been dominated by unorganized retail in the form of small, family-owned shops and street hawkers. However, organized retail like supermarkets, hypermarkets, and large retail chains are unequivocally gaining prominence. It presents consumers with a better shopping experience in a wide range of options at competing prices, together with improved supply chain reliability. The liberalization of foreign direct investment norms, along with other Government policies, is also helping in the growth of organized retail. In line with this, inflating disposable incomes induced by rising urbanization and the aspirations of an expanding middle class are strengthening the India retail market growth. Furthermore, there is an increasing desire among consumers to have access to branded merchandise, quality assurance, and better shopping experiences, which is further driving preference for organized retail formats.

Digital and Social Media-driven Consumer Behavior

Digital and social media platforms in India are increasingly driving consumer behavior. The proliferation of smartphones and economical data packages has increased the usage of social media, wherein Instagram, Facebook, and WhatsApp have been significant in influencing purchase decisions. It allows brands to communicate with customers for the promotion of their products, creating personalized shopping experiences for their customers. Besides, consumers are much better informed today: they do extensive browsing on the Internet for products and prices before making a purchase. Consequently, the easy availability of reviews, ratings, and user-generated content has better equipped them, thus making them more aware and selective while making their choices. This is, in turn, driving retailers toward more innovative means of marketing by stressing the need to establish an online presence and ensure customer loyalty through digital means.

India Retail Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2024-2032. Our report has categorized the market based on product and distribution channel.

Breakup by Product:

• Food and Beverages
• Personal and Household Care
• Apparel, Footwear and Accessories
• Furniture, Toys and Hobby
• Electronic and Household Appliances
• Others
   

The report has provided a detailed breakup and analysis of the market based on the product. This includes food and beverages, personal and household care, apparel, footwear and accessories, furniture, toys and hobby, electronic and household appliances, and others.

Based on the India retail market forecast, the growing demand for convenience foods, rising health consciousness, expansion of food delivery services, and increased availability of premium and organic products are propelling the food and beverages (F&B) segment.

In line with this, higher disposable incomes, urbanization, increased awareness of hygiene and grooming, and the growing preference for eco-friendly and premium brands are driving demand in the personal and household care segment.

Concurrently, fashion-conscious consumers, increasing exposure to global trends, the rise of fast fashion, and the availability of affordable luxury brands are fueling growth in the apparel, footwear, and accessories market.

Along with this, urbanization, rising home ownership, the trend towards modular and multi-functional furniture, and the growing influence of online furniture retailers are driving demand in the furniture segment.

Moreover, rising incomes, a focus on child development, increasing awareness of educational toys, and the influence of global entertainment franchises are boosting demand in the toys and hobby segment.

In addition to this, the digital revolution, growing middle class, rising consumer awareness of smart home technology, and the increasing demand for energy-efficient appliances are propelling the electronics and household appliances market.

Furthermore, diverse consumer preferences, niche markets for luxury and customized products, the rise of wellness and fitness trends, and increased spending on leisure activities are boosting demand in other retail segments.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Stores
• Others
   

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes supermarkets and hypermarkets, convenience stores, specialty stores, online stores, and others.

Based on the India retail market research, the appeal of one-stop shopping, competitive pricing, wide product variety, and the convenience of organized retail experiences are driving the growth of supermarkets and hypermarkets in India.

Moreover, the increasing demand for quick shopping trips, urban lifestyles, extended operating hours, and the proximity to residential areas are propelling the popularity of convenience stores.

Concurrent with this, escalating consumer preference for niche products, personalized shopping experiences, expert advice, and the growing interest in premium and branded goods are fueling the demand for specialty stores.

Additionally, widespread internet access, the convenience of home delivery, a wide selection of products, competitive pricing, and the ease of digital payments are driving the growth of online stores.

Apart from this, emerging retail formats, such as pop-up shops and discount stores, catering to specific consumer needs and trends, are creating a positive impact on India retail market outlook.

Breakup by Region:

• North India
• West and Central India
• South India
• East and Northeast India
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, West and Central India, South India, and East and Northeast India.

Rapid urbanization, rising disposable incomes, cultural affinity for luxury goods, and the growth of organized retail hubs in cities like Delhi and Chandigarh are driving retail demand in North India.

Besides this, a strong industrial base, high consumer spending, tourism-driven retail, and the expansion of retail chains in cities like Mumbai, Pune, and Ahmedabad are propelling demand in West and Central India.

Moreover, ongoing technological advancements, a booming IT sector, diverse consumer preferences, and a strong presence of retail malls in cities like Bengaluru, Chennai, and Hyderabad are driving retail growth in South India.

Apart from this, expanding infrastructure development, increasing connectivity, growing middle class, and rising interest in ethnic and artisanal products are fueling retail demand in East and Northeast India, especially in Kolkata and Guwahati

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided.
• The competitive landscape of the India retail market is highly dynamic, characterized by the presence of a diverse range of players including global retail giants, domestic chains, and emerging e-commerce platforms. Major international brands compete with established Indian players. The market is further fragmented by regional and niche players, who cater to specific consumer preferences and local demands. The rise of e-commerce has intensified competition, driving both online and offline retailers to innovate and enhance customer experiences. Retailers are leveraging technology, data analytics, and omnichannel strategies to gain a competitive edge. The landscape is also influenced by evolving consumer behaviors, with a growing emphasis on convenience, personalized experiences, and sustainability, compelling retailers to continuously adapt and differentiate themselves in this fast-evolving market.

India Retail Market News:

• In August 2024, Dubai-based Apparel Group plans to expand its presence in India by opening 750 new stores in the next three years. The company, which currently operates 85 brands and 2,200 stores across 14 countries, plans to increase its share to 25% in the next three years. The company plans to expand Aldo from 69 stores to 150, R&B from 35 stores to 200, and Crocs from 200 more stores. It also plans to introduce two new F&B brands in India - Sushi Library and Allo Beirut.
• In September 2024, Malabar Gold and Diamonds opened its 14th store in the Delhi NCR region, bringing its global presence to the region. The Rohini store offers a premium shopping experience with spacious interiors, a dedicated wedding arena, bespoke suite, and a privileged lounge. The store offers a diverse range of bridal jewellery, special occasion pieces, and everyday wear, featuring over 25 exclusive brands.

India Retail Market Report Scope:

Key Questions Answered in This Report:

• How has the India retail market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the India retail market?
• What is the impact of each driver, restraint, and opportunity on the India retail market?
• What is the breakup of the market based on the product?
• Which is the most attractive product in the India retail market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the India retail market?
• What is the competitive structure of the market?
• Who are the key players/companies in the India retail market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India retail market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India retail market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India retail industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.