The changing demand and supply drivers are likely to accelerate the growth momentum, with the Indian retail market reaching up to $1.5 trillion by the financial year 2030 and add more than 25 million new jobs by the financial year 2030, according to a recent report by NASSCOM.
The report, ‘Retail 4.0: India story - Unlocking Value through Online and Offline Collaborations’ said the Indian retail market has witnessed a massive growth of 3X over the last decade. The retail sector contributed about 10 per cent to India’s GDP in 2019-20 and 8 per cent to the total workforce with more than 35 million employees.
“Covid-19 has been a litmus test for resilience and adaptability, and the Indian retail sector has been largely successful in navigating the crisis by accelerating digital adoption and the shift to online in the country," it said.
The convergence of retail channels and the collective evolution of their capabilities via tech-enabled collaborations will define the ‘Retail 4.0’ evolution in India, it added.
Retail 4.0 will result in a significant rise in the size of the domestic market, job creation, and exports.
“Of this, a lion’s share will be the ‘Offline+Online’ model which will account for 50 per cent of the total retail employment addition - almost 12 million, enable USD 125 billion worth of exports and account for 37 per cent of total retail tax contribution amounting to approximately USD 8 billion incremental GST contribution by 2030," it added.
With the increasing rise in ‘Digital Natives’ and tech-savvy customers, retailers are embracing the use of data-driven advanced analytics, and prediction technology to tailor customer-centric product/service offerings leading to enhanced personalisation experience.
Further, to minimise and alter cost structures effectively, retailers both traditional and online are increasingly digitising point-of-sale (PoS), in-store operations, and inventory tracking in face of evolving demand, the report said.
Nasscom President Debjani Ghosh said Retail 4.0 is rapidly evolving to Online+Offline (O+O) retail models that will bring incremental economic contribution, job growth, and exports.
To achieve this, a greater need for collaboration among retail stakeholders, policymakers, and supporting sectors for tech-awareness will be the key, which will accelerate the sector’s growth in the years to come, she added.
As per the NASSCOM-Technopak survey of over 360 retail stakeholders, 79 per cent of respondents strongly felt that technology will play a pivotal role in the growth of Indian retail.
There has been a rising awareness and willingness to embrace online with 70 per cent of respondents having a positive outlook towards Online+Offline collaborations.