The retail industry includes segments like – Food & Grocery, Jewelry, Apparel, Furniture, Pharmacy, Mobile, Consumer Durables, Beauty & Personal care, Footwear, and others. The Food & Grocery segment held the largest market share of the Indian retail industry with 61.67% in FY 2022, which is estimated to reach ~58.90% by FY 2027. The Jewelry market holds the second position with 8.25% in FY 2022. The apparel market is likely to grow from 7.24% market share in FY 2022 to 8.13% in FY 2027 due to increase in disposable income.
India’s retail industry is projected to grow quickly owing to factors such as increasing urbanization, rising household income, connected rural consumers, and increasing consumer spending. The retail industry was valued at INR 62.90 Tn in FY 2022 and is expected to reach INR 120.59 Tn by FY 2027 at a compound annual growth rate (CAGR) of 14.22%. Clothing, textiles, fashion accessories, jewelry, watches, footwear, health and beauty products, pharmaceuticals, consumer durables, home appliances, cell phones, furnishings, utensils, furniture, food, grocery, catering, books, music, gifts, and entertainment are among the major segments of the Indian retail sector.
The retail industry is facing significant challenges due to the increasing cost factor associated with the large supply chain. A supply chain refers to the network of suppliers, manufacturers, and retailers involved in the production and distribution of a product. As the retail industry expands globally, the supply chain becomes more extensive, making it difficult to manage and control costs. Most consumers still like to analyze and compare products by going to an exclusive brand outlet (EBO) or a multi-brand outlet (MBO). Customers typically visit any physical store before making a final purchase since live demonstrations, in-person product viewing, handling, and experience are crucial and impactful at the time of purchase.
Israel’s retail-tech ecosystem comprises innovative companies offering solutions for wide-ranging applications, from supply chain logistics to the in-store consumer experience.
Companies, interested to know about Retail Tech offered by Israel companies,
please contact Ms. Kavitha, Trade Officer-
Consulate General of Israel, Bangalore
Tel: +91-80-49406-516, Email: Kavithas@israeltrade.gov.il