Review of the retail industry for 2022 and a roadmap for retailers in 2023
11 Jan 2023
Review of the retail industry for 2022 and a roadmap for retailers in 2023
Indian retail is a captivating tale in itself. It is worth noting how much this industry has evolved over time while maintaining its core value towards its customers. Just like every business, the Indian retail market also has its fair share of challenges. The year 2022 was the year when everybody was getting back to the office, just like in the pre-Covid era. As the year comes to a close, now is the ideal time to reflect on the intricacies of Indian retail and consider what lies ahead in 2023.
When the year began
During the 2021 holiday season, the market saw an improvement in consumer mood, which gave 2022 a bright start. Consider CBRE's report, which found that retail sector transactions increased by 160% between January 22 and April 22. Increased consumer purchasing power, the opening of offices and transport hubs, and a more upbeat market all contributed to growth.
The Government of India's creation of the Open Network for Digital Commerce (ONDC), which intends to provide an interoperable network for digital commerce and give the Indian e-retail industry a much-needed boost, was hailed by Indian retailers.
How the industry profited in 2022
India now has the third-largest e-retail market share, and consumer spending power is rising. The rise in household incomes, easier access to shopping centres and malls, and a higher internet penetration rate all have an impact on growth. The modern retail sector in India makes use of expanding e-commerce networks.
Today, targeted social media advertising accounts for a sizable portion of e-retail sales, helped along by effective marketing strategies applied across digital platforms. Social media businesses are expected to grow by at least 79%, and this development will continue to influence how retail will seem in the years to come.
The retail sector took advantage of the chances to adjust physical storefronts to meet the expectations of the digital generation by restructuring inventory management procedures, promotional strategies, and supply chains.
Challenges the industry is facing
The fluid state of the world economy could directly affect retail as a whole. Raw material costs and overhead expenses may increase as a result of the supply chain disruption brought on by a pandemic-like crisis, decreasing the brand's advantage over rivals. Workforce attrition, fake goods, innovation and new product development, fast changing consumer preferences, and data breaches are just a few major worries that could affect the performance of the brand as a whole.
According to IBEF estimates, India's retail market was worth around $883 billion in 2020 and is expected to be worth around $1,000 billion by 2030. It has now become imperative that our country’s retailers start digitising with a focus on an omni-channel framework that integrates inclusivity at the forefront.