India’s retail and FMCG landscape is buzzing with transformation: from rural growth surges to AI-led innovation, the sector is evolving faster than ever.
Rural India continues to be the growth engine for FMCG in the March quarter, outpacing urban demand despite rising input costs putting pressure on margins. While urban demand benefits from seasonal factors like summer-focused purchases, rural resilience is shaping long-term market strategies for FMCG majors.
Sustainability in brand building took centre stage this week, with Marico Chairman Harsh Mariwala advocating for innovation, digital expansion, and strong talent pipelines as critical components. The D2C space continues to draw his confidence, especially as homegrown brands increasingly cross the ₹100 crore revenue threshold, underlining the maturity and potential of this segment.
In a move toward more inclusive retail, Britannia Industries launched ‘A-Eye’, an AI-powered pilot initiative designed to enhance accessibility for the visually impaired. This effort, in partnership with WPP and Google’s Gemini technology, signals how brands are using innovation to broaden retail participation. Meanwhile, Meta unveiled a new set of AI-driven ad tools to help e-commerce and retail brands improve their reach and efficiency, especially as tier-2 and tier-3 cities see more digital retail adoption.
India has now overtaken the U.S. to become the world’s second-largest e-retail market, with 280 million digital buyers. But with growth slowing to 10–12%, questions arise about what’s next. Union Minister Piyush Goyal also weighed in, cautioning that unbridled e-commerce growth might weaken traditional retail ecosystems and lifestyle habits. The balancing act between digital acceleration and preserving physical retail continues to define the future of Indian retail.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. Rural FMCG's market growth outpaces urban in Q4 as qcom sees growth
Rural market growth continued to outpace that from the urban market for the FMCG industry in the March quarter, and margins remained under pressure as prices of some key commodity inputs remained at peak levels, according to business updates by leading players.
To build a sustainable FMCG brand, one should focus on constant innovation in brands, expansions, and technological transformation and have the right talent on board, says Marico Chairman Harsh Mariwala. He also continues to bet big on the D2C brands.
3. ‘A-Eye’ by Britannia uses AI to make retail accessible for all
Britannia Industries, in collaboration with WPP and powered by Google’s Gemini technology, has launched a pilot initiative called Britannia A-Eye, aimed at enhancing the retail experience for visually impaired consumers. This project marks a significant step towards inclusive retail, using artificial intelligence to improve independent shopping.
4. Meta Launches New AI-Powered Ad Tools to Boost Growth for India's E-commerce and Retail Sector
Meta has rolled out a suite of new ad tools aimed at helping e-commerce and retail businesses improve performance, boost reach, and unlock efficiency through AI. As India's digital retail landscape expands—fuelled by quick commerce and increased online shopping in tier-2 and tier-3 towns—these innovations are positioned to support brands looking to engage consumers across multiple channels.
5. India becomes world’s second-largest e-retail market, but growth slows to 10-12%
India’s e-retail market has reached a major milestone, overtaking the U.S. in 2024 to become the second-largest online shopping market globally. With 280 million online shoppers, India now trails only China, which boasts a staggering 920 million digital buyers. However, despite this impressive achievement, the industry’s rapid expansion has hit a speed bump.
6. The Rs. 100 Crore Club: How India’s D2C Trailblazers Are Redefining Retail
India’s direct-to-consumer (D2C) revolution is no longer just about survival—it's about scale, strategy, and smashing revenue milestones. As consumer preferences evolve and digital adoption skyrockets, homegrown brands are rewriting the rules of retail, proving that the Rs 100 crore mark isn’t just a dream but an achievable reality.
Union Minister of Commerce & Industry, Piyush Goyal, underscored the importance of assessing the broader implications of e-commerce on traditional retail businesses. "I'm not wishing away e-commerce—it's there to stay," he stated. However, he stressed that the growth of e-commerce must be evaluated dispassionately, with a focus on its effects on sectors like restaurants, pharmacies, and local retail stores.