8 minutes read

Understanding the Shifts in India's Retail Sector

Explore the evolving landscape of India's retail sector, highlighting the shift towards an experience economy and the implications for retailers.

Dheeraj Kumar
22/01/2024

India's retail sector is undergoing significant transformations, with changing consumer preferences at the heart of this evolution. A recent study by the Boston Consulting Group (BCG) and the Retailers Association of India (RAI) highlights the dual nature of these changes, presenting both challenges and opportunities for Indian retailers. On one hand, the Indian economy continues to shine on the global stage, with a robust GDP growth and projections placing it as the world's third-largest economy by 2030. This economic vibrancy is expected to propel the retail sector to a $2 trillion market in the coming decade.

However, the landscape is not without its hurdles. The study points out a shift in consumer spending from traditional staples to more discretionary and experiential purchases. This trend towards an 'experience economy' is reshaping the retail sector, with consumers favoring experiences over products. This shift is further evidenced by the growth in service categories outpacing that of product categories in recent years.

Moreover, the report underscores the increasing inclination of Indian consumers towards savings and investments, which could potentially impact discretionary spending. Despite these challenges, there are silver linings. The rise of the experience economy and the changing consumer preferences offer retailers a chance to innovate and cater to the evolving demands of the Indian consumer.

In conclusion, as the Indian retail sector navigates through these shifts, understanding and adapting to the changing consumer landscape will be key. Retailers who can blend the allure of experiences with their offerings may well be positioned to thrive in this new era. Amidst these changes, platforms like Probz.ai stand out by offering AI-powered insights collection, helping businesses glean both qualitative and quantitative insights to better understand and serve their customers.

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Dheeraj Kumar

data specialist

Archit has been working in the field of data science since 2018. He has worked with various clients in the field of healthcare, education, and finance. He has worked with various clients in the field of healthcare, education, and finance. He has worked with various clients in the field of healthcare, education, and finance.

Member since Mar 15, 2021

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