India’s retail inflation may ease to 4.1% by February 2025, thanks to falling vegetable and milk prices, though global trade and climate risks remain. Quick commerce is booming, drawing major investments but also regulatory scrutiny, as FMCG distributors call for an investigation into alleged anti-competitive practices by Swiggy Instamart, Zepto, and Blinkit.R
etail expansion has slowed, with top players like Reliance and DMart cutting store launches due to weak discretionary spending. Meanwhile, counterfeit medicines have surged by 50%, prompting urgent calls for stricter regulations.
On the corporate front, PepsiCo plans to double its India revenue in five years through aggressive investment, while Unilever expects stronger performance in the latter half of 2024, driven by affluent consumers and growth in beauty and quick commerce.
As the sector navigates inflation, competition, and regulation, businesses must stay agile to thrive. Stay tuned for more updates.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. India's retail inflation may ease to 4.1% in February, food prices remain a concern: BoB Report
India's consumer price inflation (CPI) is projected to decline to 4.1 per cent by February 2025, driven by falling vegetable prices and reduced milk costs. However, risks like higher global edible oil prices, tariff policies, and extreme weather conditions could still elevate food prices. Monitoring temperature impacts on crops and improving logistics may help stabilize prices.
2. Quick commerce dominates India's urban retail scene
A quick commerce boom is changing how Indians shop—faster deliveries, targeted buys, and big ad dollars pouring in. With established players raising quick funding, global e-commerce giants like amazon and Walmart backed Flipkart are jumping in. But can quick commerce limit cash burn and turn profitable anytime soon?
3. FMCG distributors’ body seeks CCI investigation against quick commerce platforms
The All India Consumer Products Distributors Federation (AICPDF) which represents scores of small retail businesses has petitioned India’s fair trade regulator, seeking an investigation into the anti-competitive practices of quick commerce platforms Swiggy Instamart, Zepto and Zomato’s Blinkit.
4. Reliance, DMart and other top retailers go easy on store launches as slowdown hurts
India experienced a significant slowdown in new store openings in 2024, with only an average of three new stores added daily compared to ten in 2023. Top retailers faced tepid demand in discretionary categories, leading to cost cuts and slow expansions, but they are now gearing up for the next phase of growth.
5. Surge in fake medicines in retail markets leaving druggists distraught: Traders' body
The All India Organisation of Chemists and Druggists (AIOCD) reports a 50% surge in counterfeit medicines post-COVID-19. Contributing factors include consumer preference for discounts, ineffective government regulations, and inadequate legal penalties for violators. Urgent intervention is required to address this public health threat.
6. PepsiCo to double India revenue in 5 yrs, invest in capacity building in key market
The PepsiCo plans to double its revenue in India over the next five years, considering the country a key anchor market. The company is making aggressive investments to expand its capacity, focusing on sustainable solutions and region-specific strategies to drive growth in the Indian market.
7. For India, Unilever says second half will be a better half
Unilever's CEO Fernando Fernandez expressed confidence in India's economic outlook for the latter half of the year, despite recent challenges from significant food inflation. Highlighting India's affluent and economically active households, Fernandez remains optimistic about the country’s long-term growth potential and evolving consumer preferences, particularly in beauty and quick commerce sectors.