India's Retail Market Soars to Rs 82 Lakh Crore in 2024
India's consumer market has grown to Rs 82 lakh crore in 2024 from Rs 35 lakh crore in 2014, doubling up over the decade at a rate of over 8.9%, a report by the Boston Consulting Group (BCG) and the Retailers Association of India (RAI) found. The retail market is forecast to reach beyond Rs 190 lakh crore by 2034 as India continues its rapid economic growth and transforming consumer landscape. The report, entitled 'Winning in Bharat & India: The Retail Kaleidoscope', points out that India's consumption growth pattern continues to be strong, with the 2024-2034 decade set to see the greatest growth in consumption. Despite disruption such as the COVID-19 pandemic, the resilience of the retail sector further establishes it as a driver of the economy.
"The Indian consumer market is large and expanding, with a projection to exceed Rs 190 trillion by 2034. The growth has exceeded aggregate consumption, pointing to the strength and momentum of the sector," the report said. The changing consumer profile is at the center of the growth. More families entering the upper income group mean aspirations are on the up but so is affordability.". Retailers will have to walk a fine line, appealing to premium tastes while providing value-for-money options.
India's consumer base is extremely heterogeneous, with stark contrasts defining the market. The report identifies an emerging middle class and increasing prosperity along with price-conscious consumers. It also points to the presence of digitally inclined Gen Z shoppers and a growing 45-plus population, along with the growing role of women in influencing buying habits. These overlapping trends produce what the report refers to as a 'retail kaleidoscope' a scene full of opportunity but riddled with complexity. To win, retailers will need to strategically select their target segments and design customized strategies.
"Winning in Bharat and India involves retailers to acknowledge the various opportunities, and select acutely where they wish to play, and play there effectively", the report cautioned. The omnichannel dynamic is becoming critical, with digital payment transactions and online retail penetration on the rise. More than 58% of purchases, though, continue to be purely offline, highlighting the ongoing significance of traditional retail. Consumers are influenced by trends from around the world but continue to be thoroughly imbued with local pride, yet another added complexity for retailers.
Successful retailers, the report observed, have specifically selected their areas of focus. Some excel by delivering efficiency and value in segments like mass grocery or fast fashion, while others dominate premium markets through exclusive products, immersive in-store experiences, and advanced digital tools. To capture the full potential of the Indian market, retailers must combine consumer-centric insights with sharp execution across channels.
Regardless of online, offline, or both, the companies that map their merchandise, pricing, in-store experience, network, and promotions to a clear customer value proposition will dominate the next ten years of retailing. In the end, the merchants who are able to accept India's complex consumer culture and learn to adapt to changing habits will be the gold standard for the industry, thriving in both Bharat and India's dynamic digital and vibrant physical marketplaces.
