As per a BCG report, India’s retail market is likely to grow to Rs 130-140 trillion by 2031-32. Released jointly with the Retailers Association of India (RAI), the report highlights how COVID-19 has changed consumers’ buying preferences and they are expected to shop going ahead. Abheek Singhi, Managing Director & Senior Partner, BCG opines the Indian retail market is starting to get back on its growth trajectory with kiranas and e-commerce bouncing back faster. He feels, retailers need to adapt to these shifts and adopt digital technologies at an accelerated pace to stay ahead of the curve.
The report states, the pandemic has introduced new trends such as reduced need to 'touch and feel' the products before buying and preference to branded products. To cater to changing dynamics, retailers need to re-evaluate their value proposition basis their target segment, brand promise, range and assortment, design and quality, pricing, service, experience and Omni offering. They need to base their key business decisions on themes such as adapting store network for safety and omni channel excellence; providing right product and merchandise offer; pricing and promotions across consumer cohorts; innovating along the purchase journeys; enhancing supply chain agility; optimizing customer acquisition cost and creating digital capabilities in the post-COVID world.
Rachit Mathur, Managing Director and Partner, BCG believes COVID-19 has increased the importance of hygiene, quality and brand in both essentials and discretionary products. Retailers need to understand these nuances and align their offerings with consumer expectations.
Kumar Rajagopalan, Chief Executive Officer, RAI, advises retailers to embrace the digital world in various ways—be it usage of social media, Whats app, or digital shopping in addition to their normal channels.
