India’s retail landscape continues to evolve rapidly, marked by impressive growth and strategic developments. The FMCG sector recorded a robust 10.6% sales growth in the December quarter, the highest in a year. This recovery was powered by rising rural demand and price hikes for staples like wheat flour and edible oil, signalling a positive shift after a period of subdued performance.
International brands are increasingly eyeing India’s lucrative market. In 2024, 27 new foreign retail players entered the country, nearly doubling from the previous year. Categories such as beauty, fashion, and accessories saw significant growth, with Delhi-NCR emerging as a preferred destination. This influx is driven by rising urbanisation, shifting shopping preferences, and a growing appetite for luxury goods.
Technology continues to reshape the sector, with the adoption of computer vision enabling retailers to enhance customer experiences and optimise operations. Meanwhile, global players are expanding their footprint. South Korea’s Lotte Wellfood recently set up a manufacturing plant in Pune, and GCC retailers are eyeing India’s $60 billion luxury market opportunity.
Ikea India remains bullish, projecting operational profitability as it expands its omnichannel approach. Together, these developments underscore India’s dynamic and rapidly growing retail environment, which is poised for sustained growth driven by innovation and evolving consumer demand.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. Rural demand, price hikes power India consumer goods sector growth, NielsenIQ says
Solid demand in rural areas, as well as higher prices of staples including edible oil and wheat flour, helped the consumer goods sector report a 10.6% sales growth in the December quarter, market researcher NielsenIQ said.
2. FMCG sector grew 10.6% in December quarter, says NielsenIQ India
Fast-moving consumer goods (FMCG) posted a double-digit growth of 10.6 per cent in the December quarter — its best in a year. In the same period last year, the sector recorded a growth of 6.5 per cent. It witnessed a growth of 5.6 per cent in the September quarter this year, up from 3.5 per cent in the June quarter.
3. Ikea India Eyes Profitability Amid Expansion and Omnichannel Growth
Ikea India, the Swedish furniture and home furnishing giant, anticipates achieving operational profitability within the next few years, according to Susanne Pulverer, CEO and Chief Sustainability Officer of Ikea India.
4. Why Indian retail stores are adopting computer vision
Computer vision is emerging as a game-changing AI technology, helping retailers enhance customer experiences, optimise operations, and make data-driven decisions like never before.
5. India is a $60bn opportunity for GCC retailers, experts say
Leading UAE and GCC retailers and e-commerce platforms are eyeing to corner a sizeable pie of the estimated $60 billion luxury e-commerce market in India, with some of the players already making an entry and several more are in the process of finalising entry plans, sector experts said.
6. 27 new foreign retail brands enter India in 2024 amid rising consumer demand for luxury items
In 2024, 27 new international retail brands entered India, driven by growing luxury demand, nearly doubling from 2023. Key categories included beauty, fashion, and accessories. Delhi-NCR emerged as a top destination, with high-end brands leasing significant space. The influx is fueled by rising urbanization, disposable income, and shifting shopping preferences, enhancing India's dynamic retail market.
7. South Korea's Lotte Wellfood expands India operations with new plant
South Korean confectionery firm Lotte Wellfood has opened a new manufacturing plant in Pune to expand its footprint in India, Yonhap News Agency reported. The company, which acquired local ice cream brand Havmor in 2017, currently operates a production facility in Gujarat.