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India's retail sector is set to experience massive growth, with the market projected to reach Rs 190 trillion by 2034, according to a new report by the Boston Consulting Group (BCG) and the Retailers Association of India (RAI).
This growth is attributed to several key factors, including India's unique demographic trends such as rising affluence alongside a vast middle class, ageing consumers but a large mid-aged adult population, large male working cohort but accelerating workforce participation by women. The report adds that consumer behaviour is evolving, with contrasting preferences. Many shoppers are balancing global aspirations with a sense of local pride, and there is a growing divide between those seeking premium products and those focused on value products. Consumers are also shifting between digital and in-store shopping experiences. Despite occasional ups and downs in the market, overall growth remains strong, with organized retail consistently outperforming the broader market. India's retail landscape is becoming more diverse, with large and attractive segments across different categories. It highlights two key forces shaping the sector: demographic shifts, such as rising wealth and changing age profiles, and evolving consumer behaviours, like increased demand for both premium and affordable options. Looking ahead, the long-term outlook of India's retail landscape remains positive, with increased spending expected in discretionary and experience-based categories. Affluent households are expected to triple by 2030, creating significant opportunities in luxury retail, while the mass market continues to dominate and support sector growth. Among other interesting observations, the report says that women's increasing participation in the workforce over the past five years has driven growth in sectors like beauty, personal care, and fashion. The younger generation, especially Gen Z and millennials, are becoming a major consumer group, driving demand for products and services that align with their values and digital-first lifestyles. At the same time, the 45+ age group is expected to become the largest consumer segment in the next decade, leading to new demands, such as a greater focus on preventive health products. The report also notes that while rising affluence is a key factor, there is still a strong emphasis on value. It adds that the retailers will need to strike a balance between offering high-end products and ensuring value for money. Additionally, consumers are blending global trends with local preferences, which means retailers must offer a mix of international styles and culturally relevant products to succeed in this dynamic market, the report added. (ANI)
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