Speaking About Change
Retailers witnessed a modest growth of 7% in the month of June 2023, as per a survey conducted by the Retailers Association of India (RAI). The modest growth is a reflection of the economy which is straining under the growing inflation.
The revenge shopping spree has ended and consumers are now tightening their purse strings for non-discretionary spending.
The bright side is that although moderate, the growth is there. Food, grocery, and footwear showed a growth of 15% while the jewellery category showed a 14% growth. Retail business[es] across regions have indicated growth in sales as compared to the June 2022 sales level with South India signaling growth of 8%, while East India and West India indicate a growth of 7% and 6% respectively followed by North India at 5%.
While surveys help to give us an idea of how the market is moving, they are inadequate in terms of giving the whole picture. If you speak to new-age businesses, you’ll realize that consumer spending has not shrunk as much as we believe, it has shifted. Consumers today are gravitating towards D2C brands.
India houses more than 800 D2C brands, and the count is only increasing. This market segment is estimated to touch the 100$ billion marks by 2025. And there is a lot of innovation and opportunity in this space as was evident at the India D2C Summit and Awards that were held in Mumbai last month. The July edition of IMAGES Retail talks about the Summit and the recent shifts in retail, with advice on how retailers can adapt to the change. Speaking about change, we will be launching the next edition of IMAGES Retail in a totally new format. Stay tuned.
Until then, log on to https://www.indiaretailing.com for the best and latest insights and updates on retail in India.