Retail Innovation in India

Being the 5th largest economy in the world, India expects to see a huge growth in the luxury market in the upcoming future. According to research, there is a declining market of real estate infrastructure needed to support this exponential growth in the luxury market. In order to combat this issue, we propose the idea of luxury department stores in India, which as of now, comprises of a majority of malls. 

 

We aim to give a unique shopping experience and inspire the customers with a combination of a shopping experience with a digital influence

An Emerging Market

The retail industry is forecast to grow significantly by 2021 by $1.2 trillion and it accounts for 10% of India's GDP as well as 8% of employment.

Considering this, over the coming years, over 300 international brands are expected to enter the Indian market.

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The Indian Consumer

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The total population of India was 1.37 billion as of 2019 with a middle class growing at 1.4% a year until 2022. Millennials are 34% of the total population at 440 million.

Consumer behavior in India is seen to be influenced by 3 major factors:

  • Rising Affluence

  • Unique Pattern of Urbanization

  • Fundamental Shifts in Family Structure- Role of Women in India

Further, today's consumers desire a more personalized shopping experience at every touch point therefore brands are pushing towards a more experience based retail in order to gain customer loyalty and drive growth. The "Forrester Business Impact of Investing in Experience – A Spotlight on Retail Study highlights that experience driven retailers are 1.6x more likely to have seen increased customer advocacy."

 

In order to achieve this personalized experience, brands are leaning towards technological advancements in order to gain consumer data therefore provide a more personalized experience. 

Income Expectancy

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Sources: https://www.consultancy.uk/news/13252/indian-consumer-market-to-see-strong-growth

Boston Consulting Group ‘The New Indian: the many facets of a changing consumer’,

India is home to the fourth-largest population of millionaires in the Asia-Pacific region. By 2025, the overall average household income is expected to multiply by 1.7 times.

Further, real estate plays huge role in the introduction of new brands and experiences in India. India was expected to see more than 10 million square feet of additional retail real estate in 2019 – three times that of 2018. This number is now seen to be on a decline as brands fight for premium retail spaces in India. 

Our Idea Proposal

  • Showcasing a fusion of international brands, local start-ups, concept shops and micro-businesses, and offer a wide range of leasing options, starting from a small kiosk, suitable for a small jewelry designers, for instance. The shortest leases will be six months; the longest will last for 10 years.

  • Anything in the store, from the lamp, plants and vases to furnitures like bookshelf or side table, will be available for purchase.

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  • For a seamless and personalized experience, the quiz on the store's app will guide our consumers to inspire and navigate themselves in order to explore brands synonymous to their style. It will provide them with a personalized map of the store, walking them through a personalized version of our department store.

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In collaboaration with Anne Chen and Julija Belovodskaja

Feel free to contact me regarding any questions!

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