India’s Got Retail: A Tale of Fragmented Supply & Consolidating Distribution

India’s retail ecosystem, expected to surpass USD 1.6 Tn consumption by 2030, is undergoing a transformative shift. Both supply & distribution are changing rapidly to better serve the diverse & evolving consumer needs. With the growing adoption of technology across the value chain and the advancements in infrastructure & logistics, the interplay of supply and distribution in India retail has never been more exciting. 

Unliked the developed markets, India’s retail supply remains highly fragmented. Legacy national brands drive less than a quarter of the retail market, and this brand deficiency is widespread across the key retail categories including fresh, FMCG & staples, fashion (apparel & non-apparel), jewellery, home & furniture, and general merchandise. The market is instead dominated by the unbranded segment and regional brands. The rise of new-age D2C brands has further pronounced the supply fragmentation in the country.  

Distribution, on the other hand, is undergoing massive consolidation. Organized retail, inclusive of both offline & online retail touchpoints, is scaling up rapidly, on the back of effective sourcing & supply chain innovations, and application of advanced technology & infrastructure solutions – together enabling better value-add for the end-consumer. 

The fragmented supply and consolidating distribution indicate a shift in the power dynamics towards organized channel partners. However, this unprecedented rise of organized retail requires multiple models to “chime-in”, to cater effectively to the extremely heterogeneous consumer preferences. The good part is that there is enough space for the different models to scale & sustain in India’s retail market. 

This report by Redseer Strategy Consultants provides a detailed data-backed perspective on how the supply & distribution dynamics are playing out in India’s retail and how they are expected to evolve ahead. The findings are based on extensive primary research, primarily in-depth discussions with industry participants, and consumer surveys, supported by our existing IP. Download the report now!