This week, several key trends are shaping India’s retail and FMCG landscape. The push for direct engagement between brands and kirana stores, as seen with HUL, is transforming supply chains and providing greater control and cost efficiency, particularly in local markets. This trend highlights the growing importance of partnerships beyond traditional distribution models.
In the FMCG space, companies like Adani Wilmar are diversifying into high-margin products using their established distribution networks, showcasing a broader trend of leveraging core strengths for market expansion. This shift signals a changing dynamic in the sector as companies seek to broaden their portfolios.
The rise of quick commerce is another significant trend, with expectations of its market share increasing from 0.3% to 2-3% by 2028. This growth is pushing retailers to rethink their supply chains and delivery models to meet consumer demand for faster, more convenient shopping experiences.
Lastly, in response to inflation and rising input costs, FMCG companies are turning to value-driven growth strategies. Innovation in pricing and packaging will be key for maintaining consumer loyalty in the face of economic pressures. These trends point to a retail landscape that is becoming increasingly competitive and consumer-centric.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. HUL streamlines supply chain to kirana stores, lowers credit limit barriers
Hindustan Unilever (HUL) is strengthening its control over the distribution process by directly supplying products to kirana stores in Mumbai. The company plans to expand this model to Delhi and other major metro cities
2. Adani Wilmar to expand FMCG portfolio, emulates ITC post-Adani group exit
Adani Wilmar Ltd (AWL), India's largest edible oil company, is adopting a strategy similar to ITC's by leveraging its core business and extensive distribution network to drive growth in its high-margin FMCG portfolio after the Adani group exit, according to sources.
HyFun Foods has expanded its global footprint by partnering with Woolworths in Australia. This Rs 25 crore deal for 2025 introduces their premium frozen potato products to over 1,000 stores, with further expansion possibilities. HyFun aims to leverage India's potato production to capture double-digit market share and invest Rs 1,100 crore over three years for global growth.
4. Chinese Smartphone Brands Boost Investments In India’s Offline Retail Market
Chinese smartphone brands are ramping up their investments in India and working to improve relationships with offline retailers. Notably, this shift comes after these brands faced criticism for their online sales strategies, which were seen as sidelining offline retailers.
5. The Billion-Dollar Bet: India’s Retail Growth and the Investment Rush
India’s retail landscape has undergone a seismic shift over the past decade, morphing from traditional brick-and-mortar stores to omnichannel ecosystems. Brands are now blending offline and online strategies to capture the imagination of consumers.
6. Multiple players can co-exist in Quick Commerce India's retail market: Report
The retail market in India stood at Rs 76trn - 78trn in 2023 and is expected to reach to Rs 116trn-124trn by 2028. Of this, Quick Commerce's contribution is expected to increase from 0.3 per cent (Rs 224bn) in 2023 to 2-3 per cent (Rs 2320bn-4240bn) in 2028, expanding at a CAGR of 60- 80 per cent.
7. FMCG companies expect growth to slow in Q3
Hit by inflation, higher input costs and pricing measures, FMCG companies are expected to see a contraction in their gross margin and a modest-to-flat operating profit in the Dec quarter. Several FMCG makers are likely to log a low single-digit rise in their revenue, returning to the cycle of value-driven growth.