Retail companies in India can cultivate a loyal customer base while sustaining their growth trajectory by using retail industry trends
The retail industry in India is an ever-evolving and dynamic sector, carefully attuned to the changing preferences and trends of its discerning consumers. To stay ahead of the competition in this bustling market, it is crucial for brands to remain at the forefront of industry developments.
With India becoming the most populous country in the world, brands are looking to tap into this vast market by launching products across various value segments. A favourable population composition and rising disposable income would be the main drivers of the retail industry expansion in India.
Some of the trends that are shaping the industry are as follows:
Omnichannel retailing is revolutionizing the way products are sold. With online shopping gaining widespread acceptance, brands have successfully expanded their footprint across both online and offline retail spaces. For omnichannel retailing to be successful, all channels need to work together seamlessly. Companies are investing in technologies that allow for easy integration of different channels, such as a single shopping cart across all channels, unified customer databases, and streamlined checkout processes. By developing a unified omnichannel strategy that integrates a multitude of sales channels such as brick-and-mortar stores, e-commerce platforms, social media, and quick commerce, brands can reach a wider audience and create a more immersive shopping experience for their customers.
In an era of digitalization, connecting with consumers through digital marketing has become increasingly imperative. Brands that wish to stand out from the competition must employ digital marketing tools and technologies to create personalized campaigns that appeal to their intended audience. This may involve producing captivating social media content, leveraging influencer marketing, or utilizing data analytics to gain insights into consumer behaviour and preferences. Virtual and augmented reality are emerging technologies that are being used by some companies to create immersive brand experiences for consumers. By using VR and AR, companies can provide interactive product demonstrations, virtual store tours, and other engaging experiences that can help to build brand loyalty.
Affordability is yet another influential aspect shaping the industry, particularly in India. Companies are responding to this trend by offering products at accessible price points. This may include smaller packaging sizes or multi-packs that offer better value for consumers. Brands offering affordable products that deliver great taste and quality are more likely to increase their market share substantially. Launching products across various price segments that cater to people from diverse demographics is also a strategic approach.
Innovation is a key driver of growth in the retail industry. Consumers are always on-the-lookout for new and exciting products, and brands that can deliver innovative and affordable offerings are likely to increase their customer base. This involves developing unique flavours or product formats, using new ingredients or production techniques, or introducing products at accessible price points. Companies may also invest in new technologies that allow them to create products with longer shelf lives or that are easier to transport and store.
The burgeoning demand for “better for you” products is shaping the industry. Millennial and Gen Z consumers are becoming more health-conscious and are looking for products that offer functional benefits such as reduced sugar, high protein, or natural ingredients. These products cater to consumers who are looking to indulge without sacrificing their health goals. Brands that can offer BFY products are likely to appeal to health-conscious consumers looking for guilt-free indulgences.
Sustainability is another trend that’s becoming increasingly important in the retail industry. As consumers become more environmentally conscious, they are looking for products that are produced sustainably and have a minimal impact on the planet. Brands that can demonstrate their commitment to sustainability through initiatives such as using green fuel energy, reducing packaging waste, using sustainable packaging materials or supporting local communities are likely to appeal to consumers who value responsible consumption.
Furthermore, brands must provide discerning consumers with choice and transparency. Today’s consumers are increasingly interested in knowing the exact contents of the products they consume. Brands that are able to offer clear and concise information about ingredients and nutritional value will earn the trust of their consumers. It is also imperative for brands to provide a diverse range of portion options and flavours in order to satisfy the multifarious needs and preferences of modern-day consumers.
In conclusion, by prioritizing innovation, sustainability, affordability, and providing consumers with choice and transparency, retail companies in India can foster a loyal customer base and sustain their growth trajectory.
(This article is authored by Geetika Mehta, Managing Director, Hershey India)
