The Indian retail sector continues to evolve, with this week bringing a mix of milestones, strategic shifts, and emerging trends that are shaping its future. On the digital front, the e-commerce FMCG market is set to hit an impressive $100-105 billion by FY2025, with companies focusing on blending traditional operations with digital innovation to enhance accessibility and personalization.
Meanwhile, Apple is riding high on record iPhone sales and aggressive retail expansion, solidifying its position as a premium brand in India.
Premiumisation remains a defining theme across the sector. FMCG companies are betting big on premium products to offset sluggish urban demand, catering to consumers willing to pay for quality and convenience. This trend is reflected in broader consumer behaviour, as Indians increasingly opt for high-end items despite economic concerns.
Competition is heating up, too, with Dabur India filing a legal suit against Patanjali over its controversial Chyawanprash ad, signalling the fierce battle for consumer loyalty in the FMCG space.
At the same time, rural markets are witnessing transformation as companies double down on "super workers" and advanced demand prediction models to optimize supply chains.
On the retail policy front, Haryana has extended its 2019 Logistics, Warehousing, and Retail Policy, providing stability to businesses until a new framework is introduced. Meanwhile, Dixon Technologies has joined hands with Vivo to manufacture smartphones, marking another win for India’s electronics sector.
From local brands eyeing multi-city expansion to global players rewriting their India strategies, this week’s updates showcase the vibrancy and complexity of the Indian retail market.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
- E-comm FMCG market to hit $100-105 bn by FY2025; digital transformation reshapes landscape
The e-commerce FMCG market in India is expected to reach $100-105 billion by FY2025. Success will depend on balancing traditional operations with digital capabilities, keeping products affordable and accessible, and creating personalized customer experiences, says Marico's MD and CEO, Saugata Gupta.
- FMCG companies bet on premium trend amid demand slump
The FMCG industry does not see a full revival in urban demand to set in until at least mid-next year. This is even when companies are betting on premiumisation to derive growth from the bigger cities, where consumers are seeking high-quality products and convenience to partly make up for the sluggishness that has weighed on overall consumption.
- Dabur India moves court to restrain Patanjali's Chyawanprash ad that calls rivals 'ordinary'
Patanjali Ayurved has found itself in a fresh legal tussle, this time involving Dabur India over allegations of targeting the FMCG major's 'Chyawanprash' brand. Dabur is seeking restraining orders on Patanjali over an ad which calls Dabur's product 'ordinary'.
- How India bought, craved, and consumed in 2024
Despite economic concerns, Indian consumers increasingly gravitated toward high-end items, even if it meant paying a premium. This trend, known as premiumisation, has become a dominant theme in the Indian market, with consumers opting for better quality products across various categories.
- India's only 100% vegetarian omni-channel retailer eyes expansion across cities
"Vocal for Local" will first target Bengaluru and Karnataka, then expand to other states, with plans to collaborate with local brands in cities like Hyderabad, Chennai, and Pune in the next phase.
- FMCG companies double down on ‘super workers’ in rural markets
Modern demand prediction models are bringing production and distribution closer to real-time. This paradigm shift is bringing a new set of challenges and opportunities for FMCG companies, data shows.
- 2024 sees Apple’s rise in India with record iPhone sales and expanding retail
2024 has turned out to be a remarkable year for Apple in India, as the tech giant not only broke new records for exports but also saw impressive growth in domestic sales. This success can be attributed to a combination of factors, including the rising trend of premiumisation, the government's Production-Linked Incentive (PLI) scheme, and Apple's aggressive retail expansion in the country.
- Haryana Cabinet Approves Extension of Logistics, Warehousing & Retail Policy, 2019
Haryana Cabinet, which met under the chairmanship of Chief Minister Nayab Singh Saini in Chandigarh on Saturday, approved the extension of the Haryana Logistics, Warehousing and Retail Policy, 2019, along with the schemes notified under it until the new Haryana Logistics, Warehousing & Retail Policy is notified.
- Dixon Joins Hands With Vivo To Manufacture Electronic Devices; Shares Jump 4.8%
Electronics contract manufacturer Dixon Technologies has said it will set up a joint venture with Chinese mobile phone company Vivo for manufacturing of electronic devices, including smartphones, according to a regulatory filing. Following the news, Dixon’s shares surged 4.8 per cent to Rs 18,819 apiece on the BSE during the early trade.