The pandemic's aftermath has caused the retail sector worldwide to expand exponentially in order to meet the increased demand. This is primarily because of things like shifting consumer habits and behaviour, the emergence of digital retailing platforms, etc. Globally, the largest retailers are capitalising on this boom and fiercely competing with each other for increased market share and growth.
Both global and local businesses want to enter the Indian retail market to capitalise on the sector's exponential expansion potential. The retail sector in India is expected to expand at a compound annual growth rate (CAGR) of 9% from 2019 to 2030, from US$ 779 billion in 2019 to US$ 1,407 billion by 2026. It is clear that taking a piece of the Indian retail industry would allow international retailers to develop significantly in the years to come.
Why Does India Appeal to Retail Businesses as a Destination?
India's retail sector is still in its early stages of development. It is currently the fourth largest in the world, and by 2032, market analysts predict that this industry might grow to US$ 2 trillion.
Companies may increase their economic traction and diversify their risks by getting into the Indian retail market. Additionally, it will serve to increase competitiveness and take up a portion of the rapidly expanding Indian market.
Growing Need
India's demand for consumer products has been steadily increasing. Industry statistics state that the retail sector has already surpassed 96% of its pre-COVID sales by September 2021. The reasons for this include the rise in middle-class income, the increasing pace of urbanisation, the rise in disposable income, etc. Furthermore, India is home to the third-highest number of internet shoppers worldwide. Experts estimate that the penetration of online card transactions will increase nine times over the next ten years.
Prospective Development
As per industry analyst estimates, India is believed to have ranked second in the world for retail sector growth in 2021. It is anticipated that this industry will likely generate 25 million new employment by 2030. Furthermore, it is anticipated that the Indian e-commerce market will likely maintain its development trajectory and achieve a Gross Merchandise Value (GMV) of USD 350 billion by 2030.
Top Entry and Growth Strategies for Businesses in India’s Retail Space
The following are some entrance tactics that businesses might use to enter the Indian market successfully:
Customising Offers for the Indian Market
The population of India is made up of a diverse range of individuals with different cultures, faiths, ethnic groups, etc. Therefore, businesses must think about localising their products before devising a plan to enter the Indian market. As a result, their products will meet the demands of Indian customers. They should use materials and designs in style with the community. By doing this, they will be able to build their brand and make a connection with the public.
Developing a Superb Pricing Plan
One important consideration for companies looking to enter the Indian retail sector is developing a competitive pricing strategy. Due to the growing number of middle-class families, the majority of people are low-income individuals who only spend a small portion of their income on retail purchases. Setting pricing that appeals to the Indian populace is essential for a retail business looking to expand in that country.
Influencer Marketing and Social Media Utilisation
In general, Indians use social media sites extensively. Making use of these channels for product promotion is a great approach to attracting large audiences. Many companies use Facebook to find potential customers and enhance their approaches to selecting the correct ones. Influencer marketing works well in the Indian market as well. People go by word-of-mouth referrals and evaluations. For this reason, using influencers to market items may be a great tactic. A company may reach a new audience by using the wide reach of influencers.
Utilise Cutting-edge Technologies
Using cutting-edge technologies to assess buyers’ behaviour goes a long way in establishing yourself as a retail leader. See the consumer analytics to figure out which products customers buy the most and the trends they are embracing before making changes to your retail strategy. Striking a chord with the customers is vital to continue gaining traction, and using advanced technologies is a powerful tool to achieve the same.
Conclusion
India’s retail sector is growing at a great pace and the future estimates sound promising too. However, the success of retail businesses depends on more than having great products. Yes, it’s about the enhanced reach made possible with a robust team ready to deliver beyond expectations. So, as a retail business enterprise, if you want to scale up, trust the robust team available on reBLISS - a smart work platform that connects businesses with skilled professionals across retail and other important businesses that steer India’s economic wheel quickly and in the right direction.
