Retail in 2032 2 trillion $

The Indian consumption story is increasing thanks to the rising need to try new set of products. The factors which are driving the consumption story obviously first is rising income of housholds, access to Malls in every corner of the cities even in small cities we have now malls available to shop. incresing internet speed and online space which drives customers emotionally to view online products then buy or buy through retail. Customer confidence has been improved quite a bit. The indicators are like rise in sales of Cars and Home recently. As per BCG consulting the India retail may grow between 9% to 10% might hit the 2 trillion $ no. This is a good news. Covid 19 has taught many lessons to consumers and retailers too. But in my view it is good to unlearn and learn new ways of leading life with new improved quality based consumption . For consumers it is a purchase whether from retail or online. We should look at online as an extension to next phase for Retailers. Many retailers understood ,adopted this learning by having their online presence during Covid 19 and post that. This we all are aware off.

We should also not forget that the most of the purchases are happening through debit cards , credit cards, digital payments . Banks have taken online segement sales as a main line of business to fuel their growth. Easy credit availabiity on a click of button with interest free options have lured customers to increase their consumption need.

Earlier days consumer use to visit market to market to search for products. Now all new and trending products visible to him or her on the smartphone. Market has virtually come to consumer phone screen. We have seen recovery in business from 2021 stage to 2022 basically in Food, QSR and Consumer durables. Rest of the category of business struggling say Jewlery, Fashion and footwear Curstey BCG consulting .

Online sales contribution of retailers have gone up which is giving confidence to them to build further. Data shows that Indian retail industry has outperformed US and UK retail industry in 2021.

Retailers will face challenges in future where they have to take proactive approach in mitagating the risk factors.

Cyber security & customer data theft measures , Store closures, depressed demands, Health & safety, margin pressures, cost pressures due to wage hike, modern payments & risk attached, exclusivity management, managing customer expecations, rise of online sales etc

A Chinese grocery player offers 'O2O'- Online-to Offline stores that gives consumers a “more efficient and flexible” shopping experience... Their is a possibility that many new small online players may book products from the catalogue of Retailers and do delivery on their own. Booking may also happen from these delivery based companies.

What is really needed with retailers now to strongly build diffrentiating categories by looking at investing in international products in all categories across to build diffrentiation. Today all the retailers more or less sell similar type of products . This is not creating really diffrentator in the retail industry.

Product reviews are important. How a retailer can bring reviews of products in the retail stores with the help of technology against every product. Food for thought .....

Now last not the least. Build sales, improve gross margins, reduce operational cost, improve ROI of marketing, add new customers, increase loyal customers % contribution in total sales of a retailer.

In my view Mall's may struggle if they don't adop winning strategies by ensuring that the retailer tennant should make healthy profits. Bringing footfall is Mall guarantee as well.

If your business lack the actions then look at working with professionals who can coach and make your business stand on its feet on its own in some period of time.

Gaurang Govind

Director Cgrbrands.com (Business consulting )

https://cgrbrands.com