According to the report, Indian retailers can achieve incremental growth of 8 to 20 percent. (Representative image)
Certain sectors, including beauty products, personal care, consumer electronics and consumer durables, could see a dampening of growth, according to a report from consultancy Deloitte.
The decline is due to high post-pandemic purchases, which have created a high base for FY25, according to Deloitte’s Future of Retail report.
The report also highlighted a significant shift in consumer spending patterns, with an increase in the number of value-seeking buyers, which is evident across all consumer businesses.
Although consumers could increase their spending on leisure activities, indicating good performance for the airline and hotel sectors in FY202425, the report added.
Yet the growth of premium products in several sectors, including electronics and personal care, has outpaced entry-level products. Companies will benefit from understanding their customers’ preferences for premium products and using them to drive growth, the report said.
Based on the survey, the report said that a large proportion of customers across industries reported that replacement purchases would be a key driver of purchases in FY25.
It is suggested that the companies capitalize on this trend to maintain their loyal customer base and encourage replacements when product performance or perceived value of products is expected to improve through replacement or upgrades.
The report further states that Indian retailers can achieve incremental growth of between 8 and 20 percent by sweating their investments in customers, products, channels and experiences, despite a stable demand scenario.
The key challenge and opportunity for retailers would be to grow like-for-like businesses by maximizing the potential of existing assets and investments. Our experience is that by implementing the right interventions, companies can achieve incremental like-for-like growth of 8 to 20%, the report says.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First print: June 25, 2024 | 8:51 PM IST