Retail & Consumer Practice

Our practice

Our strong industry-focused team can assist you with market entry strategy, issues, Regulatory assistance, tax advisory, transaction support, valuation assistance, finance function effectiveness, technology effectiveness, workforce management, etc. Our team has an in-depth understanding of the major issues impacting retail and consumer companies.

The sector today

PwC research indicates that the Indian retail sector is worth USD350 billion and has a low organised retail penetration of eight percent. Modern trade is growing at 15 to 20 percent per annum. Several studies have ranked India as one of the world’s most exciting retail destinations due to strong economic fundamentals and demographic advantages.

  •  India’s 500 million young consumers under 25 years of age are demanding and aspirational. Young Indians are driving purchases in mobile phones, footwear, apparel, accessories, etc.
  • PwC’s thought leadership report, Strategic Issues for Retail CEOs, indicates that retailers are optimistic about the success of their private label products. Retailers plan to derive an increased percentage of sales from private labels and ensure higher visibility of private labels in stores, etc.
  • Recent M&A and PE transactions in the retail sector are providing the funds required for marketing, brand-building, establishing operations in new cities, hiring talent, improving production capacity, etc.

India’s fast moving consumer goods (FMCG) sector, while more mature than its retail sector, is no less dynamic.

  • India-based FMCG companies have aggressive growth plans and not just content in achieving leadership positions in their home country have been boldly acquiring global peers.
  • Convenienceis a theme that is shaping India’s FMCG market.  Consumers are demanding access to products that make their lives easier (eg., ready to eat foods, sauces, purees, home care items, etc.) given the challenges of juggling home and work pressures. 
  • The onset of Diabetes and obesity in children and adults, increased awareness about health and fitness and improved access to health and wellness products are making Indian consumers believe that you “are what you eat.”  Health and wellness products encapsulate a range of categories that include spa and salons, fitness and slimming centres, herbal and Ayurvedic personal care products, etc.

The main issues to address in the Retail and Consumer sector are:

  • Infrastructure, which is the main challenge impeding expansion. The absence of good roads, highways, ports, etc. is impacting the speed with which companies can get products onto the shelf, minimize stockouts, etc.
  • Supply chain, which is a critical enabler for growth and development, given that the retail sector is becoming increasingly crowded.
  • Retail is an emerging sector in India and given this, retail talent is still developing; from a workforce management perspective, it is important to train staff, reduce attrition, etc.; training is an issue and most retailers are starting to make investments in this area.

Publications 

  • Winning in India’s retail sector — This report examines why India is a strong retail destination, reviews key tax and regulatory issues, discusses benefits of modern trade and outlines three factors critical for success. We also provide case examples of how three retailers/brands, across products, categories and pricepoints, are winning in India's retail market.
  • Wellness: Riding the Growth Wave — This FICCI-PwC report discusses India's health and wellness market from the perspective of five stakeholders—Consumers, Providers, Facilitators, Adjacent industries and the Government.
  • Strong and Steady — This report discusses the outlook for six retail and consumer products sub-sectors in Asia: food and general retail, fashion and apparel, online retailing, fast-moving consumer goods, luxury brands, and durable consumer goods and electronics, with a focus particularly on China, Hong Kong, India, Japan and Taiwan.
  • Strategic Issues for Retail CEOs — This RAI-PwC report, largely based on key insights from 19 interviews we conducted with retail CEOs and our insights, explores six major themes: supply chain, innovation, private labels, tax and regulatory issues, sustainability and workforce management. We also provide 12 primary case examples describing how retailers are managing issues and running their businesses.
  • Building to Win — The report was produced in collaboration with the Economist Intelligence Unit and is the result of 30 interviews with senior executives at global retail and consumer products companies.  The report has interesting findings on global structuring, in-country operating models, corporate culture and talent management. It focuses on the transformation currently underway with retail and consumer products companies.
  • Glimmers Amid the Gloom — This report, produced in cooperation with the Economist Intelligence Unit, focuses on six categories: food and general retail, fashion and apparel, fast food, fast moving consumer goods, luxury goods and consumer durables and electronics in Asia, Latin America and Central and Eastern Europe.
  • Issues and Solutions for the Retail and Consumer Goods Industries —  This report summarises some of the complex accounting areas that are specific to the retail and consumer industry.  These areas cover the full value chain from the conception of a product by a consumer goods company to its distribution to the final customer.
  • The Benefits of Modern Trade for Transitional Economies — This CII-PwC report examines how modern trade benefits four major constituencies: Government, consumers, farmers/producers and unorganised trade. We also present case examples from selected organisations in terms of how they are incorporating stakeholders into operations.