The Retail Leadership Summit 2024 (RLS 2024), hosted by the Retailers Association of India (RAI), unfolded its curtains on February 28 and 29 at the Hotel Westin Powai Lake, Mumbai. Gathering luminaries from the retail sphere, the event served as a platform to delve into progressive strategies shaping the industry's future.

Kumar Rajagopalan, CEO of RAI, inaugurated the summit by reflecting on the retail industry's journey in 2023. He emphasized the imperative of aligning with market dynamics and evolving consumer needs. Rajagopalan advocated for a seamless integration of digital and physical retail experiences, underscoring the importance of omnichannel strategies.

A bullish outlook on Indian retail
Bijou Kurien, Chairman of RAI, set an optimistic tone, projecting significant growth for the Indian retail sector in the coming year. Citing a robust 8 per cent+ GDP growth in Q3 FY’24 and substantial investments from both the government and private sector, Kurien foresees a surge in consumption. He highlighted the fusion of online commerce with offline expansion, targeting tier 2 cities for market expansion, thereby broadening consumer access and meeting burgeoning demands.

RLS 2024 featured presentations and knowledge reports unveiling the industry's potential. Reports such as 'Unlocking the $2Tn retail opportunity by 2030: An activist agenda' and 'How India shops online: Consumer preferences in the metropolises and tier-1, 2, 3, 4 cities' shed light on evolving consumer behaviors and market trends.

Retail titans converge: Sharing vision and strategies
The summit witnessed stalwarts from the retail sector sharing their insights. Leaders like Hari Menon (bigbasket), Lalit Agarwal (V-Mart Retail), and Sagar Daryani (Wow! Momo Foods) deliberated on creating customer-centric retail experiences. Other notable attendees included Avnish Anand from CaratLane, Sanjay Vakharia of Spykar, and Gautam Saraogi, CEO of Go Fashion (India) Ltd (Go Colors), among others." Agarwal emphasized emotional connections and brand storytelling to foster customer loyalty, while Menon highlighted the significance of personalization and convenience.

Panel discussions delved into the nuanced strategies across retail categories. Rajesh Jain (Lacoste India) emphasized uniform customer experiences across online and offline channels, focusing on cultivating brand loyalty. The presentation by Darpan Mehta and Vivek Somareddy of Amazon explored mechanisms for business expansion, underscoring the importance of working capital.

David Macadam, CEO of MECSC and ICSC, delivered a keynote address emphasizing the evolution of experiential retail and e-commerce. He stressed the role of technology, AI, and mixed-use developments in reshaping the retail landscape. Macadam advocated for embracing change and prioritizing customer experience.

Celebrating excellence: Retail awards
The summit culminated with the felicitation of retail champions through India’s Retail Champions Award 2024 and Retail Start-up Awards 2024. Eminent personalities from the industry served as the jury, recognizing outstanding contributions to the retail sector.

The Retail Leadership Summit 2024 emerged as a beacon of innovation and collaboration, setting the stage for transformative strategies in the Indian retail landscape. With a focus on consumer-centric approaches, technological integration, and strategic partnerships, the summit provided a roadmap for retailers to thrive in an ever-evolving market.

A joint report by the Boston Consulting Group (BCG) and the Retailers Association of India (RAI) paints a rosy picture for the future of India's retail sector. It projects a robust 9-10 per cent annual growth rate in the next decade, propelling the market to a staggering $2 trillion by 2034. This phenomenal expansion is primarily driven by robust economic growth and a burgeoning middle class with increasing disposable income, creating a fertile ground for retail businesses.
Middle class engine of growth
The report identifies India's robust economic growth as a key driver, with a growing middle class playing a pivotal role. As disposable income rises, consumption patterns are shifting, creating a strong demand for retail goods and services. Abheek Singhi, Managing Director and Senior Partner at BCG, emphasizes the importance of this segment: "The growing middle class with rising disposable income is fuelling a strong consumption story, making India an attractive market for retailers.
Despite the positive outlook, the report acknowledges challenges facing organized retailers, who need to adapt and innovate to maintain their market share. While the overall outlook is positive, the report highlights a slowdown in the growth of organized retail (like large supermarkets) in 2023 highlights the need for agility. As Singhi further explains, "Successful retailers will be those who challenge the perceived trade-off between growth and profitability through innovation."
Unlocking sustainable growth
The report proposes five key themes for unlocking sustainable growth in the Indian retail sector:
Embrace innovation: Challenge traditional business models by adopting innovative approaches, such as exploring new retail formats or leveraging technology for enhanced customer experiences.
Personalization is key: Leverage digital tools and Artificial Intelligence (AI) to create personalized customer experiences, catering to individual preferences and building stronger customer loyalty. Kumar Rajagopalan, CEO of RAI, emphasizes, "By focusing on personalized customer experiences, exploring new collaborations, and leveraging AI for efficiency, we can propel India's retail industry towards unprecedented growth and global competitiveness."
AI-powered efficiency: Enhance value chain efficiencies through the strategic implementation of AI across various aspects of operations.
Forge strategic collaborations: Foster partnerships with other businesses or brands to unlock new revenue streams and expand market reach.
Localization matters: Adapt merchandise and store formats to cater to the diverse needs and preferences of different regions within India, recognizing the concept of "Many Indias."
Interestingly, the report predicts continued store expansion despite the e-commerce boom. This growth is expected to be particularly pronounced in Tier I (large metropolitan cities) and Tier IV (smaller towns and cities) driven by increasing urbanization. While e-commerce is poised for further growth, the report suggests a potential slowdown in net new user acquisition, necessitating a reimagination of online retail strategies to maintain momentum.
In conclusion, India's retail sector stands at the precipice of exciting growth. By embracing new technologies, adapting to consumer preferences, and fostering innovation, retailers can capitalize on this promising landscape and contribute to the sector's projected success story.

Aditya Birla Fashion and Retail (ABFRL) has embarked on a transformative sustainability journey with the unveiling of 'Fashionabling Earth' at Bharat Tex 2024.
This innovative 3D coffee table book encapsulates a decade of ABFRL's commitment to environmental stewardship and social responsibility, marking a milestone in India's retail sector. 'Fashionabling Earth' features interactive 3D elements and pop-up images designed to inspire sustainable living among a broader audience.
The book not only commemorates ABFRL's past achievements in circularity, renewable energy, and zero waste but also outlines its dedication to clean by-design products, sustainable operations, and inclusive communities.
Dr. Naresh Tyagi, Chief Sustainability Officer, ABFRL, underscores the book's embodiment of the company's three sustainability pillars. As India's premier fashion and lifestyle player, ABFRL's narrative emphasises continuous innovation and leadership in addressing climate change.
ABFRL's partnership with Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH on the 'Approaches for Circular Textiles and Apparel Industry in India' initiative, supported by the German Federal Ministry for Economic Cooperation and Development (BMZ), underscores its proactive approach towards circularity.
Moreover, ABFRL's retail spaces, including Jaypore and Van Heusen, feature innovative digital displays and sustainable design, reflecting its commitment to environmental responsibility.
With ambitious goals like developing a net-zero built environment, ABFRL aims to elevate its sustainability initiatives over the next decade. The launch of 'Fashionabling Earth' signifies not only past successes but also ABFRL's unwavering dedication to crafting a sustainable future. The book serves as a powerful tool for engaging stakeholders and the public in ABFRL's ongoing mission towards sustainability excellence.

Esteemed premium accessories brand, Hidesign has expanded its retail footprint with the inauguration of a new brick-and-mortar establishment in Goa.

Strategically positioned in Margao, the state's bustling commercial hub, the store offers an exquisite array of handbags and bags catering to both men and women.

The store boasts a two-story layout adorned with a pristine white façade embellished with gold lettering, mirroring the brand's sophisticated aesthetic. The interior maintains a luminous and expansive ambiance, echoing the brand's signature color scheme. Prominently showcased within the store is Hidesign's coveted 'Rebels' collection, alongside an assortment of designs suitable for various occasions including parties, office settings, and travel.

The unveiling of the Margao store comes on the heels of Hidesign's recent expansions, including the inauguration of outlets in Coimbatore and Bengaluru towards the end of 2023. Moreover, the brand marked its presence in several cities including Ranchi, Vijayawada, Chennai, Pune, Kochi, and Mohali last autumn, reaffirming its commitment to establishing over 100 exclusive brand outlets across India in the near future.

Founded by entrepreneur Dilip Kapur in 1978 as a premium accessories brand in Pondicherry, Hidesign has evolved into a global entity, with its products gracing markets in 23 countries spanning the US, UK, Canada, Australia, Germany, Nepal, Portugal, Kenya, the UAE, and beyond. With over 90 exclusive brand outlets worldwide, Hidesign continues to epitomise craftsmanship and luxury, captivating discerning customers around the globe.

Fashion e-commerce company Flipkart recently infused funds worth $54 million in online fashion platform, Myntra. Disclosed in regulatory filings in Singapore, this investment marks the second funding round from Flipkart within a year. In March 2023, Flipkart had infused $105 million into Myntra.

Despite facing challenges, Myntra continues to show promise. For the fiscal year ending March 31, 2023, Myntra’s operating revenues grew by 25 per cent to Rs 4,375 crore, although its net loss widened to Rs 782 crore.

The company's India unit, Myntra Designs also received a significant investment of Rs 689 crore from Singapore-based FK Myntra Holdings.

Myntra has been strategically expanding its portfolio by adding international brands, with a focus on premium offerings that have demonstrated rapid growth.

However, there has been a softening demand for online fashion in lower-price segments. Notably, Myntra recently secured exclusive rights to sell products from Turkish brand Trendyol and partnered with French apparel brand Kiabi to enter the Asian market.

With over 420 global brands in its portfolio, Myntra derives a quarter of its revenue from international labels, marking significant growth from just two years prior. The company has shifted its focus towards select private labels, streamlining its offerings and undergoing a restructuring exercise that resulted in layoffs last July.

Despite holding a dominant 55 per cent market share in the fashion e-commerce segment, as per a research note by Bernstein, Myntra faces challenges. While it exhibited a 25 per cent growth rate in December 2023, there are concerns about user engagement and transaction rates on the platform. Myntra's gross merchandise value increased only by 12 per cent in FY23 compared to 35 per cent in FY22, reflecting a changing landscape in the online fashion market.

Flipkart's latest investment in Myntra closely follows its own $600 million commitment from parent company Walmart as part of a $1 billion funding round. This capital infusion underscores Flipkart's commitment to bolster its subsidiaries and maintain a competitive edge in the dynamic e-commerce landscape.

Renowned eyewear retail chain, Lenskart has expanded its presence in the Kingdom of Saudi Arabia with the inauguration of its second store in Jeddah, closely following the debut store in the city just a month ago.

Situated at Yasmeen Mall, Al-Manar, the new outlet marks the company's sixth store in Saudi Arabia.

Mahmoud Elfeky, Associate Vice President – Retail, Lenskart, says, the company remains committed to serve its Saudi customers with premium eyewear crafted with cutting-edge German technology and elegant Italian design. The brand would continue to expand its store network in the region, he adds.

Lenskart made its foray into the Middle East market in 2021 with the opening of its first store in Dubai, UAE. At that time, the company pledged a significant investment of approximately $50 million for expanding its footprint in the UAE market, as documented in a company blog. Demonstrating its rapid expansion strategy in the Middle East, Lenskart has opened six new stores in the Kingdom of Saudi Arabia within a span of two months, with four in Riyadh and two in Jeddah.

Founded in 2010 by Peyush Bansal along with co-founders Amit Chaudhary and Sumeet Kapahi, Lenskart has grown exponentially, boasting over 1,500 stores across more than 175 cities in India, according to the company's official LinkedIn page. The omnichannel brand offers a diverse range of eyewear styles, exceeding 6,000 options, and has served over 40 million customers with 50 million app downloads. Lenskart's ambitious vision aims to cater to one billion eyes globally by 2025, reflecting its commitment to innovation and customer satisfaction.

On the brink of a transformative journey, the Indian retail sector poised to emerge as a global powerhouse indicates a recent report from the Boston Consulting Group (BCG) and the Retailers Association of India (RAI). With a projected $2 trillion potential, the sector is primed to make a significant impact on the global stage.

Titled ‘Unleashing the $2 Trillion retail potential over the next decade: An assertive agenda,’ the report unveiled at the RAI Retail Leadership Summit underscores the lucrative prospects awaiting in the Indian market.

According to it, luxury fashion brands are being increasingly drawn to India's burgeoning market, with names like Gucci, Cartier, and Louis Vuitton opening their doors in Mumbai's Jio World Plaza Mall. This expansion extends beyond fashion to other segments like jewelry, highlighting the diverse opportunities available. The conducive economic climate, combined with high EBIDTA margins, entices luxury brands to establish or expand their presence in India.

Market penetration and consumer sentiment are key drivers shaping India's retail landscape. Sectors such as jewelry and Quick Service Restaurants (QSR) are poised for rapid growth due to their low current penetration rates. Emphasisng on the impact of electoral cycles on consumer behavior, Bharat Mimani, Managing Director and Partner, Boston Consulting Group, anticipates a potential uptick in consumption post-election. His outlook underscores the dynamic nature of the Indian retail market, offering significant opportunities for domestic and international players alike.

The future of India's retail sector is both challenging and promising, states the report. A deep understanding of market dynamics, consumer preferences, and strategic penetration levels is vital for brands aiming to thrive in this competitive landscape, it adds. The collaboration between global luxury brands and the vibrancy of the Indian market heralds a new era in retail, promising to reshape consumer experiences and business models alike.

India's largest organised retailer, Reliance Retail is eyeing a strategic move into the beauty market by engaging in discussions to acquire Kiko Milano's India operations, a renowned Italian beauty brand.

Reliance Retail is in talks to acquire the 51:49 India joint venture between Italy's Percassi Group and New Delhi-based DLF Brands, which currently operates 8-10 Kiko Milano stores across key cities such as Mumbai, Delhi, Pune, Bengaluru, and Noida. The deal, estimated at around Rs 100 crore, may also encompass the franchise rights for the Kiko Milano brand in India.

Reliance Retail's existing ventures in the beauty sector reflect a diversified approach. Tira, an upscale offline-and-online beauty destination launched in April the previous year, caters to the premium segment, while Blushlace, introduced recently in Tier II and III cities, targets the value segment, offering beauty and innerwear products. With Sephora occupying the mid-to-premium segment, the potential addition of Kiko Milano, an international brand positioned in the premium BPC market, would further bolster Reliance Retail's presence across diverse consumer segments.

A prominent value retail brand in India, V2 Retail, is set to embark on an ambitious expansion plan, aiming to open 20-25 company-owned and operated (COCO) stores within the next four months. As explained by Akash Agarwal, Director, this strategic move is designed to capitalise on economies of scale while reinforcing the brand's presence in key markets and bolstering operational efficiency.

To facilitate this expansion, the company has allocated Rs 30 crore for store expansion and an additional Rs 30 crore for inventory. Despite the aggressive offline growth strategy, profitability remains a core focus for V2 Retail, with a target of achieving an EBITDA of Rs 100 crore in the upcoming fiscal year.

In its third-quarter report for December 2023, the company disclosed a robust performance, with EBITDA reaching Rs 60.9 crore, marking a significant Y-o-Y growth of 60 per cent. Consolidated revenue surged by 56 per cent to Rs 373.8 crore, though gross margins experienced a slight decline to 31.4 per cent compared to the previous year.

V2 Retail is strategically positioning itself to cater to the neo-middle-class segment in Tier II and Tier III cities, leveraging a cluster-based approach for expansion, particularly in northern and eastern India. The firm plans to embrace an omnichannel strategy to reach a wider consumer base and enhance operational efficiency through warehouse automation.

In line with its growth trajectory, V2 Retail aims to transition towards complete in-house product design, with Agarwal highlighting a current focus on expanding the assortment of value-driven offerings while reducing average selling prices. The company also eyes a shift towards becoming a 100 per cent private label brand, aiming to increase manufacturing capabilities across its three units in Noida and Muzaffarpur.

Menswear presently dominates sales, with kidswear following closely behind, while women's wear is poised for increased traction in the future. Despite challenges associated with low average selling prices in the online realm, V2 Retail is strategically leveraging its online platform to achieve profitable growth while minimising cash burn.