$1.6 trn Retail Market by 2030 to Sell 70 PC Unbranded Products or Regional Brands

Chennai: While India’s retail market is projected to surpass $1.6 trillion by 2030, 70 per cent is driven by unbranded and regional brands in different product segments.

India’s retail market is set to grow from $1 trillion in 2024 to $1.6 trillion by 2030. Organized retail - offline as well as online retail - is projected to become a $600 billion opportunity by 2030 or more than 35 per cent of India retail.

However, scaling up will require organized retail models to also address the regional and unbranded consumption. Indian retail is marked by highly fragmented supply with 70 per cent of products valued $ 1 trillion expected to be driven by unbranded and regional brands even in 2030, finds RedSeer Consultancy.

National brands serve less than 25 per cent of consumption, while regional players and the unbranded segment cater to the vast majority. India has only around 350 brands with revenues over $100 million, whereas China has 2800 brands with over $100 million in revenue.

Building pan-India brands remains a challenge due to significant regional diversity, high

price sensitivity, and complex supply chains. India’s culture, language, and tastes change every few kilometers, leading to huge diversity in product preferences.

In a segment like sarees there are more than 100 million SKUs, over 7.5 million SKUs in toys and 10 million SKUs in home décor.

Unorganized supply led by unbranded and regional brands has resulted in creation of complex supply chains led by multiple unorganized intermediaries across both sourcing and distribution.

High price sensitivity is an impediment. With per capita income of India still 0.5x of Indonesia, 0.2x of China, and 0.03x of the US, the majority of India’s population has limited disposable income, leading to prevalence of small ticket size transactions.