Unveiled on October 9 at ‘Massmerize 2018’, the annual retail, FMCG & e-Commerce Conference held in New Delhi the FICCI– Deloitte Report, ‘Consumer LEADS’ states that India is one of the fastest growing major economy in the world, leading to a high growth consumer and retail market – thus presenting massive investment and business opportunities in the retail space. The Indian retail sector is expected to reach at USD 1,750 billion by 2026 with a CAGR of 7.8 per cent. E-commerce is expected to grow rapidly in India, one of the fastest in Asia as well as globally, at a CAGR of over 30 per cent in the period 2016-21. Also, while unorganized format dominates the retail market, share of organized segment is rapidly growing. Further, food & grocery is the major segment, accounting for 65% of retail market.
The report also reveals that emerging fields in the technology sector ranging from precision farming to data analytics have the potential to increase the efficiency of businesses significantly, providing more opportunities for the FMCG, retail and e commerce sectors. The report presents interesting company case studies including discussions with senior stakeholders of the FMCG, retail and e-commerce sectors in India, thus offering a comprehensive view of the opportunities and issues in the sectors.
According to Mr. Rajat wahi, Partner, Deloitte, healthy growth of the Indian economy (real GDP growth rate of over 7 per cent estimated for 2018) coupled with favourable demographic factors in the country are expected to drive growth in the retail, CPG and e-commerce industries. While the retail industry is forecast to grow at a CAGR of over 10 per cent in the four-year period from USD 795 billion in 2017 to reach USD 1,200 billion by 2021, the e-commerce market is predicted to increase by over 30 per cent over the same period to reach USD 84 billion in 2021 from current USD 24 billion.
Highlighting upcoming trends he maintained that personalised offerings and bespoke solutions will be seen as the major priority by consumer brands. Consumers are expected to leverage technology to indulge in two-way communication with brands leading to the emergence of a new front of consumer-to-business (C2B) market model, where brands develop new products taking cues from consumers’ demands.