Bengaluru
India’s retail sector is set to exceed $1.6 trillion by 2030, with organised retail projected to cross $600 billion, capturing over 35% of the market, according to a report by Redseer Strategy Consultants.
While essential goods will continue driving sales, discretionary spending is expected to fuel the next growth phase. Organised retail, both online and offline, is improving efficiency through better sourcing, technology adoption, and infrastructure innovations.
Currently, 350 Indian brands have surpassed the $100 million revenue mark, but the supply landscape remains fragmented. Regional and unbranded brands are expected to dominate over 70% of the market by 2030. To expand further, organised retail must cater to both branded and unbranded segments, said Kushal Bhatnagar, Associate Partner at Redseer.
Retailers are employing strategies such as backward integration, private labelling, and supply aggregation to tap into this growing market. India’s diverse consumer preferences have led to a vast number of stock-keeping units (SKUs), particularly in categories like snacks, spices, food grains, apparel, jewellery, and home decor.
Affordability remains a key factor influencing consumer choices, with many preferring small-ticket transactions. The retail supply chain faces challenges due to multiple unorganised intermediaries at sourcing and distribution levels.
Despite the rise of organised retail, traditional general trade continues to thrive due to its accessibility, local integration, and ability to cater to hyper-local consumer needs. The evolving retail landscape presents significant opportunities for businesses adapting to India’s unique market dynamics.
