Accelerating retail at scale: Insights from Keynote Address, Phygital Retail Convention 2024
At the recent Phygital Retail Convention 2024 in Mumbai, Farooq, one of the co-founders of Fynd, provided valuable insights into the future of retail in India. Farooq's speech, supported by the newly launched India Phygital Index 2024 highlighted the transformative changes and growth prospects within the Indian retail landscape.
Here are some of the key takeaways:
India's accelerating retail landscape
India is on the brink of remarkable growth in the retail sector. Projections indicate that by 2030, it will be the world's third-largest GDP, reaching $7 trillion in size. Retail, currently at $1.2 trillion, is set to expand to $2.3 trillion by 2030 (according to a report by Redseer Strategy Consultants), paving immense opportunities for innovation and growth.
Evolution of the supply chain
The supply chain is undergoing a significant evolution, driven by the need for a more integrated and consumer-responsive approach. The traditional business-to-consumer approach is shifting towards a more integrated model involving supply-to-business-to-consumer dynamics. Retailers must align their supply chains with consumer preferences, moving towards a more responsive and efficient system that minimizes inventory risks. This approach is evident in global examples like fast fashion and is expected to permeate various retail categories in India.
Transformation of unorganized retail
A considerable portion of India's retail sector remains unorganized, comprising about 70% of the market. However, digitalization is set to transform these unorganized sectors into digitally native, organized entities. This shift will revolutionize the operations of small retailers, providing them with access to on-demand and extensive inventories, thereby eliminating their dependence on traditional distribution methods.
Beyond online and offline: True omnichannel experience
The future of retail lies in a seamless omnichannel experience where consumers can purchase from any platform or device they interact with. Over the next decade, we expect smart TVs to become shopping hubs for families, and social media platforms to integrate seamless purchasing options. This will enable consumers to buy from anywhere, making the shopping experience more fluid and integrated.
Rise of agentic retailing
AI-driven avatars and agents will redefine customer interactions in retail. These agents will handle customer support and clienteling with human-like interactions. The distinction between human and AI interactions will blur, leading to a more natural and efficient shopping experience. With advancements in generative AI, particularly in voice models, this transition is expected to happen within the next few quarters.
AI-native brands and generative fashion
Artificial intelligence is set to revolutionize the retail industry. AI-powered brands and AI-generated designs and styles will revolutionize design processes, ushering in an era of creativity and innovation across various retail segments. Brands will leverage AI for end-to-end processes, from conceptualization to physical representation. This integration of AI will enable brands to stay ahead in the competitive retail landscape.
Final words
With advancements in supply chain integration, digital transformation of unorganized retail, true omnichannel experiences, agentic retailing, and AI-driven innovations, the future of retail in India is poised for remarkable growth and evolution.
Fynd, a key player in this space, has been at the forefront of these changes, enabling significant sales and supporting a vast network of retailers. Get in touch with us and learn more about the opportunities ahead, backed by our ever-evolving retail tech solutions.
Found this useful? Get more insights from an engaging fireside chat between Ragini Varma, CBO, India at Fynd with Anand Thakur, CPTO at Reliance Retail, at the Phygital Retail Convention 2024.
