The Indian retail landscape this week highlights a dynamic blend of market re-entry strategies, sectoral shifts, and evolving consumer trends.
Shein's much-anticipated return to India via Reliance Retail marks a significant move in the fast fashion sector, with the brand rapidly climbing app store rankings since its relaunch. This collaboration is expected to capitalise on the digital-first consumer wave that has reshaped retail in the country.
In the beverage segment, Nestlé's plans to introduce Starbucks' ready-to-drink products reflect India's shifting coffee culture. Despite being a tea-dominant market, the rising urban demand for premium coffee experiences signals a broader evolution in consumer preferences.
India's consumer market is on track to become the world’s second largest by 2030, with spending projected to reach $4.3 trillion. Drivers include an expanding middle class, urbanisation, and dual-income households, painting an optimistic picture of the country's retail future.
Meanwhile, FMCG players are navigating turbulence. Dabur's decision to reduce its strategic review timeline underscores the uncertainty caused by macroeconomic factors and consumer volatility. Urban markets remain sluggish, prompting brands to introduce affordable SKUs, while rural India shows promise due to favourable agricultural trends.
The adoption of digital payments continues to surge, with a 100-fold increase over the past 12 years, transforming the way retail transactions occur. As India embraces cashless convenience, the future of retail looks set for further innovation.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. Shein re-enters India market after 5-year ban through Reliance Retail
Chinese online fast fashion brand Shein has re-entered the India market almost five years since its ban through the country's leading retailer Reliance Retail. Shein India Fast Fashion App from Reliance Retail currently has over 10,000 downloads on Google's Play Store and is ranked among the top-10 among peers on Apple's store.
2. Nestle brews plans to bring Starbucks to retail outlets
Nestle is considering introducing Starbucks' ready-to-drink coffee products in India's retail market as part of their global partnership. This move aims to capitalize on the growing coffee consumption trends in India, despite it being a predominantly tea-drinking nation, and could include products like wholebean, roast, and ground coffees.
3. India's consumer market to become world's second largest by 2030: Report
India's consumer market is set to grow by 46 per cent by 2030, driven by rising incomes, a young workforce, and urbanization. Consumer spending is projected to reach USD 4.3 trillion, supported by an expanding middle class, increased discretionary spending, and the growth of dual-income households.
4. FMCG slowdown prompts Dabur to shorten strategy review timeline
Consumer goods maker Dabur India Ltd has shrunk its cycle of strategic reviews from four years to three years citing short-term volatility in the sector as well as uncertain macroeconomic indicators, according to its top executive.
5. India's job market witnesses 4% growth in Jan 2025; FMCG, pharma sectors lead: Naukri
Indian job market reported a 4 percent growth in January 2025, according to a report by Naukri JobSpeak. Among the sectors, the FMCG sector saw 16 percent growth in hiring, followed by FMCG at 16 percent and Pharma/Biotech at 11 percent, respectively. The FMCG sector witnessed growth in Bengaluru (30 percent) and Chennai (28 percent).
6. Urban slowdown might continue to hamper volume growth for FMCG companies: Mayuresh Joshi
Rural India is expected to show improvement in Q4 and Q1 due to a good rabi harvest and increased MSP prices. However, urban areas may continue to experience a slowdown, affecting FMCG companies' volume growth. Dabur's performance across its business divisions has remained steady, with the company introducing lower-priced SKUs to counter urban spending issues.
7. India sees 100-fold jump in retail digital payments over 12 years: RBI
Retail digital payments in India have grown from 162 crore transactions in the financial year 2012-13 to over 16,416 crore transactions in the financial year 2023-24 — an approximately 100-fold increase over 12 years, according to a new RBI report.