ndia’s retail and fast-moving consumer goods (FMCG) industry has undergone a massive transformation in recent times. Pulled down by successive lockdowns, businesses saw a sharp decline of 79% in sales in May 2021 compared to pre-pandemic levels. Just six months later, however, it registered a robust year-on-year growth of 160% on the back of increased consumer spending led by pent-up demand, and changing consumer behaviour.
Modes of business are changing too. The industry reached a total value of $836 billion with 81.5% contribution from traditional retail during the post-pandemic recovery in 2022. Despite this, growing digital penetration and rise of e-commerce have pushed more brands to increase their online presence. Major FMCG companies moved their business online to attract online shoppers. In fact, a recent report by marketing data and analytics company Kantar indicates that in the past three years India attained nearly 125 million online shoppers and another 80 million is likely to be added by 2025.
So what’s next for the retail industry? What retail trends will promote the growth of the sector in the near future? What should professionals looking to build a career in the industry focus on?
In an ever-evolving landscape, it is crucial for retailers to embrace the digital future, say industry players. A report by Livemint shows that availability of affordable smartphones with low cost data plans have caused many retail and FMCG companies to increase their funding in the online space.
Interestingly, India is set to gain nearly 900 million internet users by 2025. In fact, the country is already leading in digital ad spendings leaving behind large global markets such as the U.K., the U.S., and even China.