From Racks to Relationships: India's retail sector embraces emotional engagement
17 July, Mumbai 2025
The racks are still there, the mannequins poised, but the soul of Indian retail has undergone a change. What was once a straightforward transaction — the exchange of currency for clothing — evolved into an intricate scenario full of emotion, trust, and curated experiences. India's vibrant consumer space is no longer content with mere products; it demands narratives, values, and a feeling that lingers long after the purchase.
From transaction to transformation
The days of retail being solely about displaying merchandise are fading. Today, it's about shaping how customers feel, connect, and engage with a brand. This shift isn't a mere trend; it's a fundamental recalibration driven by an increasingly informed and demanding consumer base. Reports from the India Brand Equity Foundation (IBEF) consistently highlight an increase in conscious consumerism, where purchasing decisions are interwoven with a brand's ethical footprint, sustainability efforts, and societal contributions. A 2024 Deloitte report on the Indian retail sector underscored this, revealing that over 60 per cent of consumers aged 18-35 are willing to pay a premium for brands that align with their personal values. The "feeling" a brand evokes has thus grown beyond product quality to encompass its broader purpose and impact.
Emergence of the omnichannel scenario
The digital revolution, while propelling India's e-commerce market to an estimated $188.7 billion by 2025 (Statista), hasn't rendered physical stores obsolete. Instead, it has redefined their purpose. Brick-and-mortar outlets are evolving into experiential hubs, designed for immersive brand engagement rather than just product display.
A 2023 Ernst & Young study illustrated this duality, finding that 70 per cent of Indian consumers prefer a hybrid shopping experience, blending online and offline interactions. This necessitates a seamless, omnichannel approach. Whether browse on a mobile device or stepping into a store, customers expect a unified brand narrative, consistent information, and a cohesive journey. Every touchpoint, from social media advertisements to in-store assistance, must contribute to one grand, well-told story.
Loyalty's new currency
The traditional loyalty model, often defined by reward points and discounts, is giving way to a more profound connection. A 2024 KPMG survey on Indian consumer behavior revealed the rising prominence of emotional loyalty, forged through trust, empathy, and personalized experiences.
Consumers are actively seeking authentic relationships with brands that understand their needs, respect their time, and consistently deliver value beyond the product itself. Retailers are responding by leveraging advanced data analytics to understand consumer preferences, enabling hyper-personalized recommendations online and empowering frontline staff with real-time insights to offer tailored advice in-store.
The human element
This transformative period also underscores the critical role of the human element. Empowering sales associates to act as brand ambassadors and storytellers, rather than mere transaction facilitators, is paramount. Training programs are increasingly prioritizing emotional intelligence and customer empathy, recognizing that genuine human interaction is irreplaceable in forging lasting bonds. This focus on "feeling" extends to the post-purchase experience, with proactive customer service and responsive feedback mechanisms becoming pivotal in shaping brand perception and fostering repeat visits.
In essence, Indian retail is no longer simply about what's on the hanger. It's about the narrative woven around it, the experience shared, and the emotional resonance created. The clothing, in this evolving landscape, becomes a cherished symbol of a deeper, more meaningful connection.
