- Retail refers to the market that encompasses all operations including a company's direct sale of goods or services to consumers, which are often acquired for personal or family use.
- Due to the introduction of multiple new businesses, the Indian retail industry, according to IBEF, has become one of the most dynamic and fast-paced industries. It generates more than 10% of the country's GDP and employs about 8% of the workforce. In the retail industry, India is the world's fifth-largest market.
- Despite a second wave of COVID-19 hitting the country in the first half of FY21, retailing recorded significant growth as the Indian economy rebounded. In FY21, overall retailing will expand by double digits, compared to a minor dip in FY20. During the second wave of COVID-19, more positive consumer attitude, greater discretionary expenditure, and fewer limitations aided recovery. Consumer appliances, cosmetics and personal care, and home care industries, which were badly hit by strict lockdowns and reduced demand in FY20, rebounded in FY21, boosting retail sales.
Retail sales Channels:
Offline Retail Market
- An offline retail market is one in which a vendor sells things in person through a storefront location. They usually allow customers to try on things before purchasing them, and they may also provide professional fitting services.
- According to Financial Express report by Rajat Wahi, (Partner at Deloitte India) - total retail sales in India range from $850 to $900 billion, with offline retail (General and Trade and Modern Trade) accounting for 95 to 96% – General/Traditional Trade accounting for 80-83%, and Modern Trade accounting for 12-15% today, with ecommerce/online retail accounting for the rest and Direct Selling accounting for a small portion. During the lockdowns.
- In FY22, offline retail revenue in India is predicted to rise by Rs 10,000-12,000 Cr. (US$ 1.39-2.77 Bn.). By the end of FY22, India's direct selling business will be worth $2.14 Bn.
Online Retail Market:
- The sale of goods and services through the internet is known as electronic retailing (E-tailing). Business-to-business (B2B) and business-to-consumer (B2C) sales of products and services are examples of e-tailing.
- The United Nations Conference on Trade and Development's FY19 Business-to-Consumer (B2C) E-commerce Index rated India 73rd. India is the world's fifth-largest retail destination, ranking 63 in the World Bank's Doing Business FY20 report.
- India has the world's third-largest e-commerce market (only behind China, the US). By FY30, new-generation logistics companies are estimated to deliver 2.5 Bn. Direct-to-Consumer (D2C) packages. In the next ten years, online used automobile transaction penetration is predicted to increase by 9x. Despite the epidemic, Amazon, Flipkart, and other vertical players sold $9 Bn. worth of items during the festival season in FY20.
- The retail industry's primary growth drivers are an increase in digital payment methods, a hybrid retail model, and heavy investment.
- Reliance retail limited, Aditya Birla Fashion & Retail Limited, Shoppers Stop etc others are the key players of the retail industry.
Online Gifting Industry:
- There are three types of gifting categories in the internet gifting industry: festive, corporate, and personal. According to Technopak, the Indian corporate and personal gifting markets are worth a total of Rs. 250,000 Cr. Corporate giving owns Rs 12,000 Cr and is expected to expand at a pace of over 200% every year.
- According to a research by TechSci Research the online gifting business in India is expected to increase from $119 Mn. in FY19 to $159 Mn. by FY25,increasing at a CAGR of 6% each year.
Market Drivers of Online Gifting Industry
- Use of Artificial Intelligence (AI) and Data Analytics: By allowing users to fill in information about the gift recipient, occasion, relationship between the receiver and present-giver, and budget, online gifting platforms are providing customers with a seamless experience of gift choosing. The programme narrows the product possibilities and homes down on the best gifting alternatives using a machine learning algorithm. It also allows the organization to learn more about current giving preferences and stock more of these items.
- The last-minute surprises: Its capacity to deliver delectable cakes, flowers, chocolate boxes, and personalized presents late at night or after midnight is a key component in its expansion. The date and time of the event may now be customized by anyone. Same-day delivery is now available on several online giving sites.
- Personalization: Users are drawn to online gifting by the option to personalize presents at the press of a button. T-shirts, coffee mugs, photo frames, and flower selection for a bouquet may all be created depending on personal preferences and needs. As a result, the sector becomes increasingly consumer-focused.
Major Players of Online Gifting :
- Some of the major players operating the India gifting market are Archies, Ferns & Petals, Mini So, Beccos, Uniqlo and others.
- In the furniture area, Pepperfry, Hometown, and Homecentre are competitors, while in the handicraft division, The Indiacraft House, Karu, and others are competitors.