India’s retail sector continues to evolve rapidly, marked by transformation, disruption and innovation. More Retail’s MD Vinod Nambiar underlines how regional diversity and cultural nuances shape buying behaviours across the country - highlighting the importance of localisation in India’s retail strategies. Meanwhile, the Confederation of All India Traders (CAIT) is gearing up for a national stir against e-commerce and quick commerce firms, citing unfair business practices that threaten small traders.
At the top end of the spectrum, luxury retail is witnessing a remarkable surge. Leasing activity has nearly doubled as both international and Indian brands expand their presence, driven by the growing number of affluent households. Technology, too, is playing a key role: artificial intelligence is becoming central to how Indian retailers operate, helping them manage shifting customer behaviour and rising operational costs.
In corporate strategies, Reliance Retail has shifted focus towards faster profitability, mandating that new stores turn profitable within a year or face closure - a move aligned with its IPO aspirations. On the other hand, IKEA is moving closer to consumers by opening smaller, neighbourhood-format stores to tap into urban and tier-2 markets.
Strategic shifts are also playing out at the group level: while Tata is expanding, Ambani is trimming operations for efficiency, and Aditya Birla is restructuring for sharper focus. All this is happening against a backdrop of steady growth - March 2024 saw a 6% rise in retail sales, led by food and grocery, reinforcing the sector’s resilience in uncertain times.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
Vinod Nambiar is the managing director of More Retail in India. He brings in a rich experience of more than 35 years of transformational leadership experience across top consumer goods and retail companies. Nambiar has been leading More Retail through a period of significant transformation, positioning it as a leading omni-channel food and grocery retailer in India since 2020.
2. Small traders plan stir against e-commerce giants, quick commerce firms
CAIT, which claims to represent over 90 million small businesses across the country, said it aims to strategise and mobilise a nationwide movement against the alleged unethical and unlawful practices of these e-commerce companies. The conclave is expected to be attended by more than 100 top trade leaders from different states of the country, according to a CAIT statement.
3. India's luxury retail takes a quantum leap
India's luxury retail is booming. Leasing activity is up by ninety percent. Luxury brands are expanding across major cities. Both global and domestic players are vying for market share. High demand is pushing up rentals. More international brands are entering India. The number of high-income households is expected to double by 2030.
4. How AI is Changing the Face of India's Consumer and Retail Industry
India's consumer and retail (C&R) industry is going through a major digital shift, and artificial intelligence (AI) is leading the way. Faced with rising living costs and changing customer behaviour, many Indian retail companies are turning to AI and data-driven tools to stay ahead.
5. Reliance Retail targets new store profitability within a year or shut down
Reliance Retail has set a new rule for all upcoming stores: they must become profitable within six to 12 months. If not, they will be shut down or replaced with a different retail format. This is a big change from the earlier policy, which allowed up to two years to assess if a store could work. The move shows Reliance Retail is now more focused on profits and better margins, especially as it prepares for a future stock market listing (IPO).
6. IKEA India Unveils New Expansion Plan Focused on Neighbourhood-Size Stores
Swedish home furnishing giant IKEA is shifting its expansion model by launching compact-format stores tailored for urban neighbourhoods and smaller cities. This move marks a significant evolution in the brand’s India growth journey as it aims to become more accessible to a wider consumer base.
Leading conglomerates in India - Reliance Industries, Tata and Aditya Birla - are busy recasting their operating model in retail with a focus on identity, longevity and returns to cash in on the emerging opportunities in the sector. However, the business houses rely on contrasting strategies to position their business strong in the market.
8. March saw a 6% rise in retail sales in India: Report
India's retail sector experienced a 6 per cent sales increase in March 2024 compared to the previous year, indicating consistent domestic demand despite global trade uncertainties. North and West India led regional growth, while food and grocery saw the highest category increase. Retailers maintain a cautiously optimistic outlook, anticipating continued consumer spending on aspirational products.
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