This week, the retail sector highlights a mix of innovation, growth, and resilience across industries. The FMCG sector faces a pressing need to reignite volume growth amidst subdued urban demand, with a call for strategic distribution innovations to sustain momentum. Meanwhile, the rising popularity of organic baby food reflects a shift towards health-conscious consumer preferences, driven by increasing disposable incomes and awareness about food safety.
In consumer durables, LG Electronics India’s decision to file for an IPO underlines the sector’s growth potential, fuelled by strong demand. Similarly, French apparel brand Celio plans aggressive retail expansion into tier-2 and tier-3 cities, signalling growing aspirations in smaller markets.
On the real estate front, mall vacancies have dropped significantly, reflecting retail’s resurgence amid economic recovery. The pharma sector also witnessed double-digit growth in November, driven by respiratory and derma drugs, showcasing adaptability to changing health trends.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. FMCGs need volume growth, distribution innovation: Pidilite's Bharat Puri
The FMCG sector needs to reignite volume expansion and embrace strategic innovation to maintain growth, Pidilite Managing Director Bharat Puri said amid the FMCG companies reportedly facing subdued growth during October and November hit by the slowdown in urban demand.
2. LG Electronics’ India arm files for IPO amid strong consumer durables demand
The Indian unit of South Korea’s LG Electronics filed for an initial public offering on Friday to cash in on the country’s growing demand for consumer durables amid higher appetite for IPOs. The Indian firm said its parent company will sell 101.8 million shares as part of the offering. No new shares will be issued for sale.
- Rising awareness, income boost organic baby food market in India
The demand for organic and nutritious baby food is surging in India due to the rising disposable incomes and growing awareness of nutrition and food safety, GlobalData reported. The report said parents are increasingly prioritising quality and are willing to pay a premium for healthier options.
- Amid pollution woes, Asthma drug demand drives pharma retail market growth in November
India’s organised pharma retail market bounced back with double-digit growth in November, driven by high demand for derma and cardiac drugs, after months of subdued performance. Heavy pollution across several parts of the country also contributed to increased sales of respiratory medications, particularly Foracort, used for asthma and related conditions.
- India’s Retail Inflation To Ease To 4.7-4.8% In FY25: Report
India's headline Consumer Price Index (CPI) inflation is projected to settle around 4.7-4.8 per cent for the financial year 2025 (FY25), driven by a favourable statistical base, easing food inflation, and stable global commodity prices, according to the Bank of Baroda (BoB) report.
- Celio plans retail expansion with 100 new stores in India over the next 3 years
French men’s apparel brand Celio India is targeting to add 100 stores in the next two to three years, according to Satyen Momaya, CEO of Celio Future Fashion. Additionally, the brand plans to expand into tier-two and tier-three cities with plans to add another 50 to 60 stores. In the last 18 months, Celio has added nearly 20 stores to its network.
- Mall Vacancies in India Drop to 8.3%: What’s Driving the Retail Resurgence?
Mall vacancies in India have witnessed a significant decline in H1 2024, down from 15.5 per cent in 2021 to 8.3 per cent in the first six months of this year, according to a latest report by Anarock. The research company has attributed the fall to the retail sector’s unprecedented growth amid favourable economic factors and rising affluence.