Supermarkets in India

PROSPECTS

Proximity is a key factor behind the growth of supermarkets in India

Supermarkets in India is growing at a slow pace compared with other grocery retail channels. Nevertheless, in terms of value sales, the leading players are registering positive performances.

Supermarkets operators change strategy as competition with convenience stores intensifies

In the context of busier lifestyles and increasing disposable incomes, convenience stores in urban areas performed extremely well at the expense of supermarkets. Although hypermarkets suffered the most from this trend, the supermarkets channel was also affected.

Consumers chase discounted prices, which leads to a new marketing approach

Supermarkets used price drops, offers and promotional discounts to maximise footfall and retain sales during the review period. Consumers started to shop from more than one brand/outlet to maximise value for money.

COMPETITIVE LANDSCAPE

Reliance Retail maintains its lead thanks to low prices and innovative strategies

Reliance Retail, with its chains Reliance Fresh and Reliance Smart, was the leading player in supermarkets in India in 2019. This is due to its low prices compared with other supermarkets.

Domestic retailers characterise supermarkets benefiting from their local knowledge

Supermarkets continued to be characterised by home-grown retailers in India in 2019, and this is likely to continue in the forecast period. Most international players that have entered grocery retailing in India have chosen the hypermarkets channel.

Growing competition for supermarkets from food and drink e-commerce

Increasing competition from food and drink e-commerce retailers is also impacting the growth of supermarket chains. With companies such as Big Basket, Amazon and Flipkart offering discounts online, consumers are more inclined towards buying groceries online rather than from supermarkets.

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