2024 Outlook: Dynamic Trends & Forecasts for Indian Retail
In the dynamic realm of India's retail sector, a landscape marked by constant evolution, industry leaders and forward-thinking visionaries are poised to navigate the intricate tapestry of trends, challenges, and growth prospects that await in 2024.
The retail industry in India is one of the country's largest sectors, contributing more than 12 per cent to its GDP. It is also one of the fastest growing retail markets in the world, with an estimated value of USD 1.3 trillion in 2022.
As the country continues to witness shifts in consumer behaviour, technological advancements, and an increasing emphasis on sustainability, the perspectives of these influential figures provide a crucial lens through which to understand the trajectory of the retail industry in the coming year.
From sustainable practices and innovative product offerings to the transformative impact of technology on customer experiences, these insights collectively paint a comprehensive picture of what lies ahead in the vibrant and ever-changing world of Indian retail.
Rising Incomes, Evolving Consumer Habits To Dominate
Deepak Aggarwal, Director of Clay Craft India, expressed delight in the remarkable growth of the Indian tableware market, citing rising incomes, evolving consumer habits, and an increasing focus on sustainability as key drivers.
“These factors collectively contribute to making the industry the next big thing in the Indian market. As we bid farewell to this remarkable year, I am delighted to share that Clay Craft has witnessed a remarkable 25 per cent growth. As we stand at the threshold of a new year, we wish for continued prosperity, creativity, and shared moments of joy around the table,” said Aggarwal.
Embracing Sustainable Conscious Consumerism
Gunjan Jindal Poddar, Founder of Amala Earth, highlighted the shift towards conscious consumerism in 2024. “In the coming year, we anticipate a surge in demand for eco-friendly alternatives, driven by an ever-growing awareness of environmental issues. Consumers are not merely shopping; they are making statements about their values and belief systems. This paradigm shift signals an era where sustainability isn't just a trend but a lifestyle choice,” said Poddar.
She adds that at Amala Earth, she foresees an inspiring landscape where businesses are not just a marketplace of earth-friendly, natural, sustainable and organic products and labels but a driving force behind inspiring consumers to make eco-friendly switches towards a meaningful lifestyle.
Innovation, Sustainability, Personalised Experiences
Samir K Modi, Founder and Managing Director of Colorbar Cosmetics, reflected on the transformative journey of Colorbar in 2023. In 2023, Colorbar experienced a transformative journey, focussing on strategic initiatives that played a significant role in the brand's growth and expansion. Our strong commitment to innovation shone through successful product launches that not only engaged our customers but also reinforced our belief in igniting the inner magic to empower self-expression. “As we actively pursue the goal of transforming into a fully sustainable brand, this heightened emphasis on environmental responsibility not only resonates with increasing consumer awareness but also establishes us as a pioneering force in the industry. As we step into 2024, the global spotlight on customer-centric experiences has deepened, and Colorbar stands at the forefront of this transformative wave. Through the incorporation of automation tools and the integration of an AI-driven personalised product recommendation, alongside the innovative 'Virtual Try-On' feature, we aim to enhance the shopping experience to offer personalised consumer journeys,” said Modi.
He also added, “Our main focus for the upcoming year involves continued innovation, expanding our retail presence, and implementing a robust omnichannel strategy to connect seamlessly with our diverse audience. Additionally, we are committed to introducing a more sustainable and eco-conscious product line, aligning with our dedication to environmental responsibility and catering to the evolving preferences of our customers.”
Rising Middle Class, Robust GDP Growth
Deepali Vijay Jain, Founder and Chairwoman of DiamondXE, provided a growth forecast for the Indian retail sector in 2024, projecting a promising 10 to 13 per cent growth.
Said Jain, “Factors like rising middle class, robust GDP, and continued festive season demand bode well. Tech-driven initiatives and rural consumption upsurge add further optimism. Inflationary pressures, potential job losses, and rising living costs could dampen consumer sentiment. Balancing luxury & value offerings will be crucial for retailers to navigate this dynamic landscape. After a challenging 2023, the diamond industry might see a rebound in 2024. Early restocking and supply control efforts could bolster prices by mid-year.”
Talking about the key indicators, she said, “Global economic slowdown and potential sanctions on Russian diamonds could pose risks. Price stability and consumer spending patterns will be key indicators to watch.”
Capitalising On Changing Shopping Trends
Jitendra Sharma, Founder and CEO of HairOriginals, noted the exciting growth expected in the Indian retail sector, driven by changing consumer behaviours and increasing confidence in spending.
“This growth is driven by more people buying luxury items and looking for good deals, a trend that we, as India's first D2C brand for 100% natural hair extensions and wigs, feel we can capitalise on. People are more confident about spending, boosting sales across different types of stores. There's a big change happening in how we shop. More people are buying online or using a mix of online and in-store shopping today, and we are at the forefront of this shift, enhancing the customer experience through AI-driven features and popular VR technologies,” said Sharma.
He added that the government is also helping by making it easier for foreign companies to invest in the Indian retail sector. “This new year, we expect to see the Indian hair extension and wigs market to grow in size and become more customer-centric. Overall, 2024 will be a transformative year for retail in India.”
Technological Advances And Sustainability Focus
Mohit Jain, Co-founder and CEO of Kimirica Lifestyle, too predicted a 10 to 13 per cent growth in the Indian retail sector in 2024.
“With the ongoing digital transformation, the sector is likely to witness a surge in e-commerce and digital payments, leading to a shift in the retail landscape. The implementation of advanced technologies such as AI and other big data analytics are anticipated to enhance the overall customer experience. Additionally, the industry may see increased focus on sustainability, personalised shopping experiences, and innovative retail formats. Overall, 2024 is expected to be a dynamic and transformative year for the Indian retail sector,” commented Jain.
As these industry leaders share their insights, it becomes clear that innovation, sustainability, and a customer-centric approach will be key drivers shaping the Indian retail sector in the coming year. The industry is poised for growth, driven by changing consumer preferences and a commitment to delivering excellence in products and experiences.
