The retail industry anticipates a transformative year ahead with a focus on innovation, sustainable practices, and robust growth, driven by changing customer experiences, AI integration and more
With a rollercoaster ride of large highs in 2023, the retail sector is set to begin a period of exciting growth driven by innovation and changing customer experience.
The year ahead promises a dynamic landscape of change and opportunity with AI, prioritising sustainable practices.
“In 2024, innovation will take centre stage, with brands exploring new materials and manufacturing techniques that align with the environment and evolving needs of the customers,” said Sean Ashby, Founder and CEO, aussieBum.
He emphasised that quality and durability will take precedence over quantity, as health and wellness considerations will be major driving choices.
According to Umang Jindal, CEO of Homeland Group, the retail sector in India is set to witness robust growth, fuelled by a projected GDP growth rate of 6.5 per cent and an expected increase in per capita income to USD 3,277 per annum, this growth is particularly noticeable in tier two where changing demographics and improving infrastructure are driving retail expansion.
“The integration of online and offline retail channels, the rise of omnichannel retailing and the increasing importance of data-driven decision-making are some of the trends that will shape the future of the sector in 2024,” Jindal stated.
The retail industry is projected to grow annually at a rate of 10 per cent in coming years to reach around USD 2 trillion by 2032, he added.
Rapid Retail
While in-store shopping remains the preferred way, delivery of groceries and daily essentials in 10 to 30 minutes is here to stay, thanks to quick commerce business models, said Sharmila Senthilraja, Vice President and Industry Platform Leader for Consumer Products and Retail – India, Capgemini.
“With ecommerce predicted to constitute 22.3 per cent of total retail sales by 2024, retailers will prioritise a seamless online experience, quick deliveries, secure payments and personalised recommendations,” Ashby said.
Saahil Goel, CEO and Co-founder of Shiprocket said, “However, the real dynamism lies in the heart of tier two and tier three cities as they emerge as growth engines, striving toward the vision of becoming a superpower by 2047.”
AI In Fashion
With AI integration, a focus on sustainability and customisation, the year 2024 promises to be an exciting one for Gen Z-focused fashion. Players currently witness a high degree of fashion adoption in tier three cities and this trend is expected to accelerate along with more ecommerce penetration. However, the category may experience some headwinds at the beginning of the year.
“We believe that while H1 may see some macroeconomic headwinds, the younger population that is targeted by value fashion will largely remain buoyant and will grow the category,” said Shyam S Prasad, CEO, Brand Studio Lifestyle.
The ecommerce channels will pivot towards greater personalisation and unique customer experiences in the coming year, he added.
Additionally, a big trend to watch out for in 2024 will be the increasing role of generative AI in content creation, predictive analytics and personalisation.
“This will become more prevalent in the fashion space in design, content, cataloguing and in how audiences will experience content in an immersive manner,” Prasad added.
Above all, inclusivity will be paramount, with brands embracing diverse sizing and styles to cater to varied body types and gender expressions. Emphasising both comfort and style, a surge in fashionable and trend-forward designs, incorporating bold colours and patterns is expected, Ashby highlighted.
Moreover, India is asserting its growing global relevance in the fashion industry through a combination of rich textile heritage and innovation.
As per Ashby, with a rapidly expanding digital infrastructure and flourishing e-commerce sector, India will emerge as a significant player in global online retail.
