India's value retail sector has undergone a remarkable transformation over the past decade. Currently pegged at US$112 billion, the market will likely surge to US$170 billion by 2026, according to a Wazir Advisors report. This segment is set to grow at a CAGR (Compound and Annual Growth Rate) of 15%, surpassing the overall retail sector's expected 10% CAGR. The overall retail market grew from approximately $490 billion in 2011 to over $1 trillion in 2022. Value retail contributed substantially to this, growing at a CAGR of around 15-20% during this period.
"The rise in digital integration, personalized shopping, and sustainability has evolved the growth of value-retail as a segment," said Vineet Jain, COO, V-Mart.
This evolution has been driven by a surge in consumer demand for affordable yet quality products, rapid urbanisation, and an expanding middle class with rising disposable incomes. As a result, several value retail brands have not only emerged but also thrived, each employing unique strategies to capture and sustain market share.
Following the success of Zudio from Trent Ltd., many large retailers entered the game. Reliance Retail brought Yousta, Aditya Birla Fashion & Retail Ltd. opened StyleUp, and Shoppers Stop launched InTune all focusing on affordable clothing, footwear, and accessories.
Other players like D-Mart, V-Mart, V-Bazaar and Vishal Mega Mart too expanded their value retail offerings.
Factors
The future of value retail in India looks promising, with continued growth driven by urbanization, increasing disposable incomes, and evolving consumer preferences. To stay competitive, value retailers are focusing on innovation, operational efficiency, and customer-centric strategies. They are embracing technology, such as Al-driven insights and e-commerce integration to understand and meet consumer needs.
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