Fourth episode briefing you about the Indian ecommerce market growth, brands in metaverse and the Indian pet care retail segment surge.
Hello and welcome to This Week in Indian Retail - a podcast dedicated to the major events, news and stories that impacted the Indian retail industry in the last week.
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This is July 10th 2022 and I’m your host Prateek Malik from New Delhi.
Let’s get started!
Summary of Week 27 of 2022 :
Indian ecommerce market to grow by 3x in the next 4 years Industrial body FICCI and realty consulting firm Anarock released a joint report last Thursday that briefs the growth project of the Indian ecommerce market from $38 Billion in 2021 to $120 Billion in 2026. The market size of the retail segment is estimated to grow from $705 Billion in 2020 to $1.8 Trillion in 2030. Online shopping boosted e-commerce growth during the pandemic across Tier-2 and Tier-3 cities of India due to the availability of affordable internet access and restrictions on physical movement. This has also pushed the logistics and warehousing infrastructure development beyond the Tier-I cities. Various key projects have been initiated by the Central government such as Gati Shakti Program, GST, National Manufacturing Policy, Self-Reliant Campaign, land and tax reforms. Further to this, the National Logistics Policy is in the draft stage and is expected to change the face of the logistics sector in India. It concluded that there would be more demand for quality workspaces that are well-located and offer convenience to the employees besides a gamut of other facilities that promote well-being and hygiene.
Indian retail brands test waters in the metaverse While international luxury brands like Gucci, Balenciaga, Louis Vuitton marked their presence in the metaverse economy, Indian brands are also aspiring to be a part of the club. Jewellery brand Tanishq launched its wedding collection titled ‘Romance of Polki’ in the 3D display zones on the metaverse, where signature pieces from the collection were displayed. The audience can view the jewellery pieces in 3D by scanning a QR code. One of India’s largest tyre manufacturers - Ceat Limited also created their own meta store called Ceat Shoppe. The Shoppe is integrated with their e-commerce platform. Buyers and customers can view products in 3D and book orders on the same. Auto giant Mahindra & Mahindra also played with NFT marketing. It auctioned four Thar-themed NFTs, each costing INR 26 Lacs. The winners of the auction got the chance to enjoy an off-road experience to drive the new Thar model. Indian textile company Mafatlal Industries opened a metaverse gallery and NFT store for fashion enthusiasts on Comeearth - an e-commerce metaverse platform in June. This NFT gallery uses 3D models to engage with customers and offer an immersive experience of designer apparels. Multiple designs of school and hospital uniforms are available as NFTs in the store. It is a fascinating, new revenue source for these companies and is contributing to the post pandemic financial recovery. These NFTs are simply branded digital product sales, which is like digital asset sale, without requiring the physical logistics hassle. While some critics talk about the irrelevance of the meta assets, the promoters claim it is a timeless possession. However, being an unregulated market, it has its own risks and one should venture as per their own judgment.
The love for pet care retail segment in India Across the past 5 years, the pet care retail segment in India maintained a steady 17.0% growth rate vs. the global 5.0% growth rate. Currently there are 25 Million dogs, 4.5 Millions cats and over 6 Lac+ pet adoptions across the country. Pet ownership grew by 4.5x in the last two decades. The pet care retail includes sales of pet food, pet care medication or supplies, and pet services like grooming. Pet food is the major segment covering over 50% of the total sales. While markets across North America and Europe are majorly saturated, Asian markets especially India are witnessing a new surge of pet care brands including both regional and global players. There have been multiple reasons for this change. Firstly, there’s a major awareness among the pet owners that different pets would require different foods as per the seasons. Secondly, the segment is being led by the demand for more premium products. As the majority of the pet owners are upper and middle class, the rising disposable income is leading to more conscious buying decisions - ranging from natural food products to supplements for vitamins and minerals. Thirdly, there has been a strong demand for ancillary services like salons, spas, pet cafes and even the end of life services - from organized cremation to grief consulting. Also, there has been a niche for pet tech accessories like GPS tags, smart leashes, smart feeding machines and live call cameras. Lastly, there has been a well presented offline retail presence through pet care stores and salons. These hubs are well placed across most metro cities and offer a wide variety of products and services. This is being backed by a cohesive omni retail network on both online and offline channels, which is further supported by the existing growth of the supply chain across all tiers and zones in India. An average Indian consumer is spending approx INR 25,000 per year on these services, which is equivalent to a smartphone or a home appliance purchase. Needless to mention, it may grow beyond the projected numbers in the future.
That’s a quick wrap for this week.
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See you in the next one.
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