Consumer Markets

In an industry where cost pressures are high and margins are tight, it makes sense that the majority of consumer & retail brands are taking a controlled, risk-limiting approach. The biggest players can innovate at scale but for others, following on fast is an effective tactic. Nevertheless, modernisation intent is endemic across the industry. The conversations we’re having with clients are very much ‘AI first’ as C&R businesses look to embed smart tech across their operations to become a lever for growth.

India’s retail leaders are moving beyond transaction efficiency to experience orchestration. The real differntiator is not payment methods but strategic collaboration with banks and fintechs to co-create seamless, trusted journeys.

Those who build ecosystems, not vendor stacks, will lead the next growth curve.

The 2025 Consumer & Retail CEO Outlook highlights AI’s shift from pilots to scaled adoption, driving smarter operations and deeper consumer engagement.

For India, this presents a clear opportunity to build AI-led, agile business models – but success will depend on strengthening data foundations, scaling responsibly and translating investments into enterprise-wide impact. As consumer demand becomes more diverse and digital-first, technology will be the defining lever for resilience and differentiated growth in India’s retail landscape.

Precision is what separates growth India’s consumer growth story remains compelling, but capturing it will demand sharper execution. Organisations will need to rethink how they read demand signals, accelerate decision-making, and deliver consistently at speed. Future leaders will bring together scale and precision, insight and execution, and central clarity with local agility.

While cost and budget constraints may be top of mind for many retailers, the reality is that consumers hold all the power. If they demand a new type of payment option, retailers have little choice but to accept it.

Retailers can’t afford to spend a year assessing and implementing a new payment option; they must be ready to adapt quickly, both in terms of strategy and technology integration.

Sharad Maloo

Psrtner, HCAS
KPMG in India

As operating models digitise, success depends on cross-functional, data-led teams that can act on micro‑market signals fast. Incentives matter just as much. Leaders must shift to shared growth metrics, rewarding teams collectively for market share, service and experience, no matter where the sale happens.

What's next for kiranas in evolving neighbourhoods. This is not just about competition. It is about relevance. Consumer baskets are changing. Earnings are under pressure. The next generation is stepping away.

Survival now depends on sharper local assortments, better loose staples, closer FMCG ties and simple digital ordering.

India's consumer market is entering a decade defined by speed, precision, and experience. Traditional go-to-market models built around broad distribution and national averages are no longer sufficient in a market where demand fragments across micro-markets and channels converge rapidly. Organisations that win will be those that sense demand early, orchestrate channels intelligently and execute with precision at a local level, turning data, technology and supply chain agility into a unified growth engine.