Retail

The Evolving Consumer and Shifting Retail Dynamics

The retail industry in India is undergoing a profound transformation. Consumers of today are not just participants—they are informed, empowered, and driving demand across formats, from traditional brick-and-mortar to digital channels. Supply chains, distribution networks, and operational efficiencies are being redefined through tech integration, omnichannel strategies, and data-driven logistics.

Customized Strategic Services for Modern Retailers

Our retail sector specialists offer tailored services across the value chain, including:

Strategic Consulting by experienced consumer-sector professionals
Taxation Advisory aligned with evolving retail and e-commerce regulations
Audit & Assurance, encompassing internal control evaluations
Risk & Financial Advisory for navigating market volatility and opportunity zones
M&A, Fundraising, Partnerships & Investor Relations, designed to meet modern capital and expansion needs

Sector Overview: A 2025 Snapshot

India’s Retail Market has evolved exponentially over the last few years and has emerged as one of the fastest growing markets in the world with significant opportunities and challenges. The growth is primarily driven by increased consumer spending, rapid urbanization, growth in e-commerce and digital trading, and rising disposable income in the hands of a large middle-class segment.

Retail Market Size & Growth: India’s retail sector demonstrated remarkable expansion, with the total market estimated at USD 993.1 billion in 2024, and projected to surge to USD 3.43 trillion by 2033 at a CAGR of 13.2%. A BCG–RAI report also forecasts the sector to hit INR 190 trillion by 2034, driven by demographic shifts and evolving consumer preferences.
Leasing & Physical Retail Resilience: In Q1 2025, retail leasing surged 169% year-on-year, with 3.1 million sq ft leased and 2 million sq ft of new supply added across India’s top seven cities. Domestic retailers dominated take-up at 86%, and fashion/apparel led leasing categories with a 31% share.
E-Commerce & Quick-commerce (Q-Commerce): The e-retail GMV stood at approximately US$ 60 billion in 2024, making India the world’s third-largest retail market and second-largest in online shopper base. India’s e-commerce market, worth US$ 147.3 billion in 2024, is projected to grow at a CAGR of 18.7% through 2028. A thriving D2C market crossed US$ 80 billion in 2024 and is on track to exceed US$ 100 billion in 2025. The Q-commerce sector (ultra-fast delivery models like Blinkit and Zepto) reached a gross order value of US$ 7.4 billion in FY 2024–25, shifting focus toward profitability and sustainable monetization through fee-based streams. Read more.

Policy Landscape & FDI Dynamics: India’s FDI framework has continued to be liberal. In FY 2024–25, total FDI inflows stood at US$ 81 billion, growing 14% over the previous year. This includes 100% FDI under the automatic route for business-to-business (B2B) e-commerce marketplaces but prohibits inventory-based e-commerce foreign ownership. At the same time, regulatory scrutiny remains high, with the Enforcement Directorate filing a FEMA complaint against Myntra for alleged FDI rule violations amounting to over Rs 1,654 crore.
Index Reform with E-Commerce Integration: In 2025, India’s statistics ministry began directly sourcing price data from Amazon, Flipkart, and other platforms to revamp the Consumer Price Index. This move aims to capture evolving spending behaviors, particularly in e-commerce, streaming, and travel-related goods/services.

Your Strategic Edge in 2025 & Beyond

As India’s retail universe becomes more dynamic and differentiated—from omnichannel networks to regulatory shifts and digitization—our advisory services empower retailers to navigate:

Consumer sophistication and segment-specific strategies (urban vs tier-2/3 markets, value vs premium, digital-first vs experiential)
Changing compliance and regulatory frameworks, especially around e-commerce operations and FDI
Supply chain optimization through tech, analytics, and localization
Capital structuring for expansion and investor relations in evolving capital markets

Let’s shape the future of retail together—combining research rigour with decades of experience to deliver insights that matter.

Sources

Would you like to start a project with us?

Partner with us to unlock strategic financial solutions tailored to your growth and sustainability goals.