The Indian retail market is projected to reach over Rs. 190 lakh crore by 2034, driven by economic growth and evolving consumer preferences, according to a joint report by the Boston Consulting Group (BCG) and the Retailers Association of India (RAI).
Titled ‘Winning in Bharat & India: The Retail Kaleidoscope’, the report highlights the sector’s resilience, noting that India’s retail market has grown from Rs. 35 lakh crore in 2014 to Rs. 82 lakh crore in 2024, reflecting a compound annual growth rate (CAGR) of over 8.9%.
The report underscores the growing affluence of Indian households, balanced by a strong demand for value-for-money offerings. Retailers must strike a balance between aspiration and affordability to succeed in a market shaped by a burgeoning middle class, price-sensitive consumers, digitally savvy Gen Z shoppers, and an expanding female workforce.
The rise of omnichannel retailing is another key trend, with digital transactions soaring. However, 58% of purchases still happen offline, indicating the continued relevance of physical retail.
Retailers that embrace India’s diverse demographics and contrasting consumer behaviors are poised to benefit the most, the report suggests. Companies must sharpen their focus on specific consumer segments, with some excelling in value-driven mass grocery and fast fashion, while others thrive in premium categories through exclusive offerings, immersive in-store experiences, and advanced digital engagement.
A well-aligned operating model—covering merchandise, pricing, omnichannel strategies, store networks, and promotions—will be crucial for sustained success, the report adds.
Despite India’s rapid economic growth, the retail landscape remains complex, with sharp contrasts in consumer behavior. Retailers must identify the right opportunities and execute strategies effectively to gain a competitive edge in both ‘Bharat’ and ‘India’.
By leveraging consumer-centric insights and seamless execution across online and offline channels, businesses can not only keep pace with India’s retail boom but also set new industry benchmarks for the next decade.
