Omni-channel sales & investment opportunities for international brands in the Indian Retail Industry
30 October 2023, Mumbai
WHY India
India's retail industry is booming, driven by the emergence of new players, a large population, a growing middle class, and a segment of consumers willing to splurge on luxury goods.
These factors make India an attractive destination for foreign retailers who want to expand their business.
Key Factors Driving Omni-Channel Sales
Rising discretionary spending power: India's average per capita income has crossed $2,000 and is expected to reach $12,000 by 2047.
Growing internet and smartphone penetration: India is the second-largest internet market in the world, with more than 800 million internet users. The rise in smartphone users has boosted the growth of e-commerce platforms.
Expanding middle class: India's middle class is expected to drive consumer spending, which is projected to grow from $1.5 trillion in 2021 to almost $6 trillion by 2030.
Organized retail sector growth: The organized retail sector in India grew by 34% in FY 2022-23, exceeding pre-pandemic sales figures.
Personal loan growth: Personal loan growth in India, which serves as a sign of consumer spending, increased by 23.7% year-on-year in January 2023, with loans for major purchases, like vehicles, showing strong growth.
Indian consumers shopping
Investment Opportunities for International Brands
International brands have several investment opportunities in the Indian retail industry, including:
Investing in omnichannel retail: Omni-channel retail is becoming increasingly popular in India as consumers expect a seamless shopping experience across all channels.
International brands can invest in omnichannel retail by integrating their physical and online stores, as well as by offering convenient delivery and return options.
Expanding into new markets: India is a vast country with diverse demographics, which presents international brands with the opportunity to expand into new markets. For example, brands can target emerging cities and tier-II and tier-III towns, which have a growing middle class with disposable incomes.
Launching private labels: International brands can launch private labels to cater to the specific needs and preferences of Indian consumers. This strategy can help brands increase their market share and profitability.
Partnering with local retailers: International brands can partner with local retailers to expand their reach and gain a better understanding of the Indian market. Local retailers can provide international brands with valuable insights into consumer behavior and preferences, as well as help them navigate the regulatory landscape.
Quick View
Overall, India's retail industry is a rapidly growing market with immense potential for international brands.
By investing in omnichannel retail, expanding into new markets, launching private labels, and partnering with local retailers, international brands can capitalize on India's growth story and achieve success.
5 key insights:
- Rising incomes, internet use, and middle class drive growth.
- Omni-channel retail is the future.
- New markets offer untapped potential.
- Private labels cater to local needs.
- Local partners guide global brands.
