NEW DELHI: The Indian retail market is one of the fastest growing markets in the world, expected to cross USD 1.4 trillion by 2027, said the latest annual report of Reliance Industries (RIL). RIL operates the country’s leading retailing firm Reliance Retail.
India is poised to become the third-largest retail market by 2030, the report said adding the growth is propelled by factors like increasing urbanisation, rising income levels, expanding female workforce, and an aspirational young population.
Moreover, a rising demand for premium and luxury products further fuels this growth trajectory, reflecting the evolving preferences with rising disposable incomes.
This growth extends across various town classes, benefiting numerous local, regional and international brands and manufacturers.
“They are being connected with consumers across diverse markets, thereby actively participating in India’s ongoing growth narrative,” said Reliance.
Segments such as grocery, fashion and lifestyle and consumer electronics constitute over 90 per cent of the fast-growing Indian retail market.
“Focus on range expansion across non-food categories remained a key priority. Stores witnessed continued growth in the non-food category led by General Merchandise and Home & Personal Care categories,” it said.
Reliance Retail Venture Ltd (RRVL), the retail arm of billionaire Mukesh Ambani-led RIL, which crossed the Rs 3 lakh crore revenue mark in FY24, is a “commitment” for the sector and has made “substantial investments” across the retail value chain over the years, the report said.
The company saw a record 1.2 billion customer transactions in the fiscal year.
However, it also mentioned challenges as well such as “supply of quality real estate due to limited availability of quality malls and high streets” and lack of trained manpower to support growth.
Reliance Retail had a record footfall of over 1 billion at its 18,836 stores and its registered customer base increased to 300 million.
“Reliance is India’s largest retailer and the only Indian retailer to feature among the top 100 global retailers,” it said.
Reliance Retail is expanding its reach through a multi-channel distribution model, leveraging a network of its stores as well as digital and new commerce platforms.
It operates an integrated network of stores and digital commerce platforms, retailing in the electronics, fashion, grocery and connectivity consumption baskets.
Reliance Retail, which has an ambition to have a substantial FMCG business in the country, is also building its consumer brands business through indigenous products that are accessible and affordable, the report said.
It has made several strategic partnerships and acquisitions.
Reliance Retail’s acquired beverage brand Campa and owned brand Independence have received good traction from trade channels and consumers, it said.
“The own brands business witnessed the introduction of new products across various categories and an extended distribution reach,” it said.
Besides Reliance, the largest fashion and lifestyle retailer, is also driving growth by assortment through tailored target customer segments and expanding in the right catchment areas through new store openings.
In the fashion e-commerce space, its online platform AJIO strengthened its proposition. It also launched the ‘Swadesh’ store format and youth-focused ‘Yousta’.