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The Rise of Indian Retail: How India is Transforming Shopping Experience
The rise of the Indian retail sector is transforming the shopping experience for consumers around the world. Today, India is home to some of the world’s largest and most successful retailers such as Reliance Retail, Godrej, Titan, and V-Mart, to name a few. The retail sector in India, propelled by innovation and creativity, has grown immensely over the last decade. As on 17th April 2023, there are more than 2,890 DPIIT Recognised startups in the Retail sector, spread across 363 districts in India. Some of the key sub-sectors under Retail include Comparison Shopping, Retail Technology, and Social Commerce which form 77% of all retail startups, while Auto Vehicles, Parts & Service Retailers, Computer & Electronics Retailers, Home Furnishings Retailers, and Home Improvement Products & Services Retailers form the rest of the 23% of retail startups.
E-commerce is becoming a major force in the Indian retail sector. India’s young demographic, increasing internet and smartphone penetration, growth of online payment systems, and relatively better economic performance are some key drivers for the growth. According to a report published by IAMAI and Kantar Research, India’s internet users are expected to reach 900 million by 2025 from ~622 million internet users in 2020.
Over the years, retailers have had to innovate and modernize their stores to keep up with the changing demands. Some of the pivotal innovations and trends in the sector include Digital Payments due to which retailers are now able to offer customers additional payment options such as mobile wallets and UPI, and customization allowing retailers to provide tailored experiences using data and analytics.
As e-commerce has become more popular, through Omnichannel Retailing, retailers are using technology to bridge the gap between online and offline shopping and provide customers with a seamless and unified experience. For instance, Lenskart provides an omnichannel experience to customers, allowing them to purchase the same product from both online and offline stores with the same delivery time. Similarly, Nykaa first established its presence solely online through its website and app, before operating on an omnichannel store strategy and opening physical stores across the country.
Today, startups across sectors and categories are selling their products through innovative retail solutions. For instance, Vahdam Teas, a DPIIT-recognised startup, is disrupting the traditional supply chain of tea by delivering garden fresh teas to consumers across the world, by leveraging technology & cutting out middlemen.
The direct and indirect impact created by these startups has been monumental. Retail startups have generated employment of over 28,000. Startups in the Retail space have also been at the forefront of inclusivity, with 47% of such startups having at least one woman director.
While the sector continues to surge to new heights, 32% of Retail startups are in the Validation stage, while 33% are in the Early Traction stage. Considering the same, the 2023 edition of the National Startup Awards by Startup India, DPIIT, has introduced an award category dedicated to Retail called the Retail Innovator of the Year to recognize the innovation and impact being created by startups in Retail.
The potential for growth in Indian Retail is tremendous with retail startups sprouting up in smaller towns and villages, allowing more people to experience the convenience they have to offer. The changing face of Indian retail has provided an exciting new opportunity for both businesses and customers.
If you are a startup making a difference in this Sector, we urge you to apply for the National Startup Awards 2023. To apply for the National Startup Awards 2023, you have to be a DPIIT recognised startup. Click here to get recognised.
