Carrying forward the legacy of a well-established business is a bit of a healthy obsession for Mr. Sunil Agarwal, the director of Vinod Cookware. A visionary himself, Mr. Sunil Agarwal believes in the power of innovative cookware which brings people together, and by adhering to this principle, he has played a monumental role in taking the cookware empire to newer heights. He became a notable dignitary in the industry after taking over the realms of Vinod Cookware two decades ago. He has also earned numerous accolades for the brand and expanded the company’s expertise from stainless steel to innovative categories of induction cookware and competitive non-stick cookware.
The COVID-19 crisis led to the emergence of unprecedented changes in the retail industry, along with the inevitable humane challenges and economic repercussions. According to Forrester Research, the Indian retail industry was valued at $883 billion in 2020. As per the data released by IBEF, India established itself as the fifth-largest global destination in the retail space and ranked 63rd in World Bank’s ‘Doing Business’ 2020 report. However, the second Covid-19 wave led to several businesses exploring new strategies to balance the books and align the cash flows with the revenue. The global pandemic brought a significant paradigm shift in consumer sentiments, which in turn, affected the retail industry in more ways than one. The defining factor of how and where people are spending their money changed in the blink of an eye. To ensure constant growth, relevance and overcome the challenges faced ever since the first lockdown issued across the country, the retail industry needs to keep a close eye on evolving consumer behavior and industry trends.
The Indian retail industry has put the country on the global map in terms of retail trends and profitability. The retail sector’s operations might have been disrupted in the initial phase of the pandemic, but now, it has caught pace and is recovering well. In the post-Unlock 2.0 world, retailers are looking to ramp up their strategies creatively to attract more customers. Be it launching a product by utilizing social media content creators, engaging AR filters, inculcating value-added services, or creating a virtual reality shop for the consumers to explore. The Indian retail industry is the fifth-largest and one of the fastest-growing retail destinations in the world. Being a developing economy has allowed the Indian retail industry to contribute, to a great extent, to global market growth too. Let’s take a closer look at the top-performing segments in the retail industry post-Unlock 2.0:
The thriving segments post-Unlock 2.0
Fashion is one of the largest retail sectors in the world, naturally, in India, it is characterized by large formats that are fairly price competitive. Personal care stores consist of self-diagnostic equipment, natural foods, beauty parlors among other items. Small single outlet retailers have also dominated the sales of fitness and personal care products.
Physical and mental health has taken center stage ever since the COVID-19 outbreak, resulting in people becoming more health-conscious and indulging in expenditures on health and pharmaceutical products. It has kickstarted a revolution for millions of people, not just in India, but across the world. The rise in value-added services like home delivery and online consultation has further propelled this sector to excel.
In the post-Unlock 2.0 world, the content supply has taken a front seat again, and the return to normalcy for the entertainment sector has been noteworthy. Not only the Metro cities but Tier II and Tier III cities as well have displayed a strong propensity and affinity for online content. Retail chain segments like amusement parks, music, and movies have come to the forefront and further contributed to the entertainment sector.
Consumer electronics meant for everyday usage include computers, smartphones, cameras, video recorders, game consoles, GPS navigators, musical recording and playback equipment, and video media. There is an increasing demand for electronics as the consumers are always on the lookout for new technology and thus, it is the fastest-growing segment of the retail industry in India after food and grocery. Several luxury brands have increased their presence in shopping malls and high streets. The exponential rise in consumer expenditure on luxury items has opened the door for potential new businesses to thrive in the current market scenario. Not to mention India’s technological advancements that have led to the country making a mark in this sector on a global level.
The Food and Grocery sectors come out on top
Food sales accounted for 77 percent of total sales, resulting in growth to Rs 70.7 lakh crore from Rs 35 lakh crore in 2005. In a significant development during the pandemic, we have seen people baking, cooking at home instead of ordering food online. It has shaped how we plan meals and at the same time, how we shop for groceries. As people explored their palates with new recipes in their repertoires, they gradually gravitated towards premium kitchen essentials from the retail sector. This trend has continued in the post-Unlock 2.0 phase as well, with food retailers and manufacturers catering to customers who are on the lookout for products that make home cooking, simpler and healthier. As a result, the overall demand for cookware products has observed a significant boost. The global cookware market size is expected to reach USD 20.15 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 6.9% from 2021 to 2028. The food and Grocery sector in India occupies approximately 60 percent market share of the total industry size. It continues to remain the dominant sector in value terms. New players in this sector have banked on new opportunities, aligned their product offerings and strategies to meet the demand following the impact of COVID-19 on the retail market. The food and grocery sector, in particular, has overcome the challenges of consumer buying behavior patterns, perhaps more successfully than others, and thereby, seen an emergence of a large number of food outlets across the country.
According to reports, India will clock an economic growth of 6.7 percent in 2022, slower than the country’s expected 2021 growth rate. However, even with a slower growth rate of 6.7 percent, India will still be the fastest-growing major economy in the world next year. The post-Unlock 2.0 world is more than just about recovery. The rise of e-commerce, driven by demand factors, has seen phenomenal growth. With a significant rise in online traders and a soaring disposable income of the current generation, the sky’s the limit for the Indian retail industry.