India’s retail and FMCG sectors are experiencing dynamic shifts, driven by evolving consumer behaviour, policy changes, and strategic corporate moves.
Walmart’s Q4 results highlight the impact of Flipkart’s Big Billion Days sale shift, with the retail giant benefiting from strong performance in India. Meanwhile, the Indian retail industry is poised for exponential growth, projected to double from $1.2 trillion to $2.5 trillion by 2035. This expansion will be fuelled by urbanisation, digital adoption, and the rising influence of e-commerce, which is set to reach $550 billion. Notably, tier II and III cities are emerging as major retail hubs, offering new growth avenues.
In a significant move, Google is set to open its first retail stores outside the US, with locations in Delhi and Mumbai. This will bolster its presence in India’s premium smartphone market, where it competes with Apple. Speaking of Apple, the tech giant is also seeking approval to expand its direct retail presence in India, capitalising on favourable regulatory shifts.
Quick commerce continues to disrupt traditional retail, with a projected 75-100% annual growth rate. By 2025, it is expected to capture a substantial share of India’s $250 billion grocery market, driven by rising consumer demand and the participation of leading FMCG companies. Meanwhile, Nestlé India is considering price hikes to counter rising costs of commodities like coffee, cocoa, and edible oil, carefully balancing affordability and profitability.
The rural market also presents untapped potential for FMCG companies. Marico’s CEO, Saugata Gupta, emphasises the need for long-term investment in rural distribution and smaller price-point packs to capitalise on increasing disposable incomes and growing demand for branded products.
As India’s retail landscape evolves rapidly, businesses are making strategic moves to secure their positions in this high-growth market. The coming years will be defined by digital expansion, premiumisation, and innovative retail formats.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. Walmart Q4 growth: Retail giant leverages Flipkart's Big Billion Days shift
Announcing the results for the fourth quarter of FY25, global retail giant Walmart said the company’s international business benefited from the change in schedule of Flipkart’s Big Billion Days (BBD) sale. On overall performance, the US-based retail giant said that the company performed well in India.
The Indian retail industry is set to grow from $1.2 trillion to $2.5 trillion by 2035, driven by urbanization, digital adoption, and policy support. E-commerce will play a significant role, projected to reach $550 billion by 2035, while tier II and III cities emerge as new retail hubs.
3. Google to open first retail stores outside the US in India, targeting premium market
Google is finalising plans to establish its first-ever physical retail stores outside the United States, with locations likely in New Delhi and Mumbai, three sources familiar with the matter told Reuters. This move is expected to strengthen Google’s presence in India’s premium smartphone market, where it competes with Apple.
4. India's quick commerce to grow 75-100% YoY, will outpace traditional retail: Bernstein Report
Quick commerce in India is set to grow at a staggering 75-100% year-on-year in India, outpacing traditional retail. By 2025, it is expected to capture a substantial share of the USD 250 billion grocery market in the top 40-50 cities, bolstered by consumer demand and leading FMCG companies.
5. Rural market at inflection point offers headroom, long-term potential for growth: Marico MD & CEO
The rural market presents significant growth opportunities for FMCG companies as rising disposable incomes drive demand for branded products. Marico's CEO, Saugata Gupta, emphasizes the importance of consistent investment in rural distribution and affordability through price point packs to leverage this potential.
6. Apple Seeks Approval for Retail Expansion in India
Apple has applied for approval from the Indian government to establish a wholly-owned retail store in India, leveraging changes in retail regulations. The move aligns with Apple's strategy to strengthen its presence in a market that continues to see growth in smartphone sales. Currently, the company sells its products through third-party retailers in India.
7. Nestle India considering price hikes to counter commodity inflation, executive says
Nestle India plans to increase prices of its products slightly to address rising costs of coffee, cocoa, and edible oil without significantly impacting sales volumes. This move comes as profits decline due to consumer inflation and high commodity prices. The company aims to keep increases minimal while awaiting the potential boost in consumption from upcoming personal income tax cuts.