Umang Gupta, Country Head at RELX- Reed Exhibitions, speaks on the rise of aspirational consumers beyond metros, D2C brands moving offline, experiential retail and the growing role of AI and data in retail expansion
India’s retail growth is increasingly extending beyond the largest metros, with Tier 2 and Tier 3 cities emerging as important markets for retailers, mall developers and consumer brands. Rising connectivity, improving infrastructure and growing consumer aspirations are opening up new opportunities for organised retail, while D2C brands are increasingly adding physical stores to their online presence.
At MAPIC India, Umang Gupta, Country Head at RELX- Reed Exhibitions, spoke to BW Retail World about the changing retail landscape, the expansion opportunity in emerging cities, the convergence of retail and commercial real estate, the offline evolution of D2C brands, experiential retail and how data and AI are reshaping retail decision-making.
Q. MAPIC India brings retailers, brands and commercial real estate developers together. What role does the platform play in India’s evolving retail ecosystem?
MAPIC has been a flagship event for RX, and this is its 22nd edition. The platform has been in India for almost two decades. If I were to simplify it, it is an amalgamation platform for the retail industry and commercial real estate developers.
Retailers want to know where the next major mall or retail development is coming up. When we say India is growing, that growth is no longer happening only in the metros. It is increasingly happening across Tier 2, Tier 3 and even Tier 4 cities. Retailers therefore want to understand which locations across India are emerging as the next growth markets.
At the same time, mall developers are keen to meet emerging retail brands. Consumers entering a mall today are not only looking for the same established brands they have seen for years. They also want something new, whether that is a homegrown Indian brand or a new international entrant.
That makes MAPIC a meeting point for retail and real estate because the two sectors work hand in hand. Investment plans, expansion strategies, leasing discussions and brand launches can all come together on one platform.
Q. Which categories and markets are currently showing the strongest appetite for retail expansion beyond the top metros?
There is no single segment where we are seeing expansion. India is growing, the population is young and consumers are spending more across lifestyle categories.
That could mean health and wellness, including gyms and healthcare, or luxury retail across apparel, watches and jewellery. Entertainment and F&B are growing as well.
A visit to a mall today is no longer just about buying a product. A consumer may shop for apparel or footwear, eat out and also look for entertainment. The mall itself is becoming much more experience-oriented, which is why several of these categories are expanding simultaneously.
Q. What has changed in Tier 2 and Tier 3 cities that is making them increasingly attractive to organised retailers?
Over the last five years, particularly after Covid, greater telecom connectivity and improved highway connectivity have helped create a new generation of consumers in Tier 2 and Tier 3 cities.
These consumers are equally aspirational. They have purchasing power and they want access to brands and experiences that were previously concentrated in metropolitan markets.
For retailers, this represents a large untapped market. A whole new segment of consumers is now coming into organised retail.
Q. D2C brands that started online are increasingly opening physical stores. What is driving this shift, and how important is retail real estate to their next phase of growth?
Absolutely. Many startups initially built themselves through e-commerce and online channels. Once they reach a certain level of success, however, they often want to establish a physical retail presence.
We have several brands at MAPIC that may have started online five or 10 years ago but today operate multiple retail outlets across India.
Online channels can provide significant reach, but depending on the nature of the product, consumers still want to see it, feel it and assess its quality physically. Eventually, many brands will want both an online and an offline presence.
Q. Consumers are increasingly looking for experiences rather than purely transactional shopping. How is this changing mall formats and retail technology?
Consumers are becoming much more experience-driven. That means mall developers and retail brands have to think beyond just the product.
Traditionally, retail was largely about the product and its pricing. Today, brands have to consider the entire shopping experience, from how a consumer enters the mall and where the outlet is located to how technology is being used inside the store.
AI and other technologies can increasingly become part of that experience, including in categories such as apparel. More investment is therefore going into understanding the consumer journey and the consumer mindset, rather than focusing only on the transaction.
Q. How are AI, data analytics and digital tools changing retail decision-making across inventory, personalisation and consumer engagement?
Data is now sitting at the heart of retail planning.
Inventory is one important area. Consumers increasingly expect products to be available quickly, and in many cases they expect delivery within hours. For a retailer operating outlets across India, managing inventory across markets therefore becomes extremely important.
Personalisation is another major opportunity. Consumers are becoming more individualistic in their choices and are looking for greater customisation.
With the amount of data now available, retailers can plan different product variants for consumers in North India, the Northeast, western India and southern India rather than treating the entire country as one homogeneous market.
Data is becoming an integral part of how retailers think, plan and execute as they try to serve the new-age consumer.
