According to a recent report by FICCI-Deloitte, Indian retail market will hit a whopping USD 1,200 billion mark by 2021 and USD 1,750 mark by 2026. The report further adds that the country’s e-commerce market will also continue to grow to reach USD 84 billion by 2021 and USD 200 billion by 2026. 

Tier-2 and tier-3 cities will contribute immensely to support this market growth. “Organized food and grocery sector expected to reach USD 75.1 billion by 2025 and online shoppers expected to increase from current 15% of the online population to 50% by 2026,” said FICCI. 

This exponential growth in consumer market today is backed up by innovative solutions, technologically advanced start-ups, hi-tech processes, tech savvy consumers, and increasing smartphone penetration. 

“Along with these, India’s macroeconomic factors and favourable demographics are fuelling the growth. The supply and demand factors are expected to further accelerate the change of growth in the consumer and retail sectors. In addition, the government is also providing strong impetus to make the business environment more conducive for companies operating in this space through developments in infrastructure (electricity, transportation, digitisation of processes and economy, skill enhancement, Foreign Direct Investment regulations, etc.), which is facilitating growth,” said Rajat Wahi, partner, Deloitte. 

Dilip Chenoy, secretary general, FICCI, believes that India has immense potential as the world’s fastest-growing major economy. However, it needs to “promote participation and involvement of businesses for furthering the cause of nation building and achieving the societal goals of inclusive growth and empowerment of the people. The industry needs to continue with its efforts to ensure that the advantages of technology are available to all sections of the society.” 

“The voice of consumer is paramount and brands must channelise all their efforts in understanding the needs of the consumers by analysing their shopping patterns and behaviours. In addition, the industry must evolve to provide seamless retail channels to the consumers,” said the report.

According to the report, the companies should personalize the loyalty benefits to gain trust of their consumers. They must retain committed to their values.

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