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Premium retail growth in India to be driven by quick commerce, tier II aspirations: Industry expert

Published 1 month ago2 minute read

India's retail landscape is rapidly changing with the rise of quick commerce, premiumization, and digital disruption. Traditional retailers in smaller cities are enhancing services to remain competitive, while direct-to-consumer brands and sustainability practices redefine the market. Future retail leaders must navigate this evolving ecosystem with tech-savviness and human-centric leadership.

Anurag Sharma

India’s retail landscape is undergoing a rapid transformation, with quick commerce, premiumization, and digital disruption leading the charge. Kaushik Das Gupta, partner and lead – consumer, retail & media practice at Odgers Berndtson India, said that businesses must adapt swiftly to stay ahead in this dynamic market.

“Quick commerce is here to stay, expanding rapidly into Tier 2 and 3 cities. Traditional retailers are taking cues from Tier 1 markets to enhance services and remain competitive,” he said. At the same time, premium categories in personal care, automotive, and retail are witnessing strong growth, driven by rising disposable incomes. However, Gupta notes that many Indians continue to purchase luxury products from tax-friendly markets like Dubai and Singapore due to better pricing and variety.

Further, Gupta highlights how D2C brands are reshaping the market, leveraging e-commerce, modern trade, and exclusive stores—as seen with Organic India and Nykaa—to bridge existing gaps. Sustainability is also taking center stage, with brands integrating eco-friendly practices without compromising product quality.

In a retail environment where technology and consumer behavior evolve faster than ever, leadership must also transform, Gupta emphasized. “Future retail leaders must be digital natives with a high Emotional Quotient (EQ). They need to learn, unlearn, and relearn at an unprecedented pace,” he said.

With quick commerce scaling, D2C brands disrupting traditional models, and sustainability driving new consumer choices, the future of retail leadership will demand a blend of tech-driven decision-making and human-centric leadership. Gupta opined that successful leaders will need to balance digital acceleration with brand storytelling, cost efficiency with customer experience, and innovation with operational scale.

As quick commerce and sustainability gain momentum, only agile, innovation-driven leaders will thrive in India's evolving retail ecosystem.

  • Published On Feb 11, 2025 at 07:51 PM IST

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