Deepak H. Archna Gupta Pooja Doshi
Revenue Growth Reported by Retailers in RAI Survey
As per the RAI Business Survey in Jul-Feb FY 22, the overall Retail Segment was on a recovery trajectory in FY 22, while the differential recovery noticed across segments. The Apparel segment was still in the recovery path. The segments already recovered above the pre-covid levels include food & grocery, restaurant & QSR and consumer durables. The segments on track towards full recovery include jewellery, accessories, footwear apparel segments. The beauty and personal care segment showed a longer path to recovery.
Spending Tendencies!
Indian consumers continue to be optimistic on spending. According to RBI’s Consumer Confidence Index (CCI) on Spending, the post-covid recovery period of September 2021 to July 2022 has been the highest ever since pandemic.
Apparel Segment (FY 22) has recovered up to ~90 – 95% of FY 20 revenue. The last 3 quarters of FY 22 has seen great recovery with continued momentum and FY 23 is anticipated to register a minimum growth of 25% vs. FY 20.
Key Trends to Watch
- The Digital disruption is likely to stay in India!
What does it mean for brands?
Technology will shape the future of “experience” in India – Growing demand for Personalization, Social media Influencers, Online Reviews, Online Solutions and more are an integral part of the e-commerce segment. It is noteworthy that ~8% apparel sale was online in FY 22 600+ D2C brands operate in India.
Indians want a good life, while easing out the fast life!
What does it mean for brands?
- Importance of convenience, ease of access and engagement is increasing
- Shift from store to experience
- Merging of digital and store experience
- Technology enhanced instore experience E.g., Video Commerce
- Meta-Fashion AR VR Experience
What does it mean for brands? Quickly adopting to the new change to continue to be relevant and provide new marketing & experience channel E.g., Tanishq, Lenskart, TataClix, Manish Malhotra.
- India on path to mindful consumerism!
What does it mean for brands? Indians appreciate values like transparency, reliable source/process, locally owned, natural/organic, kindness to mother earth etc. in brands E.g., desire of clean eating, healthy living, absence of undesirable ingredients extend beyond categories of food/personal care to automobiles (EV) and fashion.
- Sustainability is the new black
Today’s ‘conscious consumer’ needs to know what their product is made from, where it is made, and what they can do when they have finished with it.
What does it mean for brands? Appeal to the conscious consumer through the production of products incorporating values of sustainability, resale, and environmental, as well as human ethics E.g., Levis, Nike, Ritu Kumar- Mismatched, ABFRL.
- Indians want to westernize while flaunting their “Indianness”
What does it mean for brands? Fusion wear: Desi with a twist OR western with a Desi angle is gaining importance.
- Indian men are looking for affordable indulgences
What does it mean for brands? Little happiness goes long way; brands to offer touchpoints to “experience premiumness/ pampering” E.g., Male grooming brands like The Man Company, Beardo, shoe brands like Mochi have gained popularity. 
BY- Deepak H , Partner & Country Head, Ipsos Strategy3
