Retailers must continue to innovate, embracing trends such as quick commerce, AI-powered omnichannel experiences, and sustainability to stay competitive
IndiaRetailing Insights: The retail sector is witnessing a rapid evolution, driven by shifting consumer expectations and technological innovations. From the rise of quick commerce in fashion to a growing emphasis on sustainability, the following trends are set to define the future of retail.
1. Quick Commerce in the Fashion sector
Quick commerce has rapidly reshaped how consumers shop for fashion. The growing demand for fast, reliable delivery services has forced retailers to innovate their operations. With local fulfilment centres, efficient inventory management systems, and same-day or next-hour deliveries, fashion brands are now able to meet customers’ expectations for speed and convenience. This shift is helping build brand loyalty and increase sales, particularly as customers seek immediate gratification in their shopping experiences.
Fashion e-commerce platforms like Myntra have recently announced the launch of M-Now enabling 30-minute delivery. “Together with the brands, M-Now will play a transformative role in advancing our collective mission to expand fashion possibilities and reshape India’s lifestyle shopping experience,” said Nandita Sinha, chief executive officer (CEO), Myntra in a statement. “This is just the beginning, and as we advance in our M-Now journey, Myntra will continue to sharpen the offering on multiple fronts, including selection and the speed promise.”
“With the rise of quick commerce, fashion retailers must be agile in adapting to new consumer needs,” said Naman Vijay, chief executive officer (CEO), Clickpost, an all-in-one logistics platform. “Optimising last-mile delivery systems and integrating technology into the supply chain will be crucial for brands looking to maintain their competitive edge in 2025.”
2. The Integration of AI and Omnichannel Strategies
In 2025, the integration of Artificial Intelligence (AI) and omnichannel strategies will be at the forefront of retail innovation. Retailers are using AI to enhance customer experiences by providing personalised recommendations, virtual try-ons, and 24/7 chatbot services. These tools are helping retailers stay ahead by improving operational efficiency, enabling accurate demand forecasting, and enhancing inventory management.
Moreover, omnichannel strategies, which integrate both online and offline channels, will ensure a seamless and consistent customer experience. Customers now expect features like click-and-collect, real-time inventory visibility, and easy returns for online purchases. By using AI-driven solutions to improve these experiences, retailers can offer personalised service that spans both the digital and physical realms. This approach not only leads to higher customer satisfaction but also drives sales across various touchpoints.
“Retailers can no longer afford to treat online and offline experiences as separate. A seamless, unified approach will be the key to gaining customer trust and loyalty,” said Berry Singh, Co-founder and chief operating officer (COO), Ace Turtle.
AI will also play a critical role in improving store operations. For example, retailers are using computer vision to analyse in-store CCTV footage, gaining insights into foot traffic, customer demographics, and store layout optimisation. This data helps brands tailor the in-store experience to customer preferences, ultimately improving sales performance.
3. Innovation in Logistics and Supply Chain
Efficient logistics and supply chains will be essential to meeting the demands of consumers who expect fast, reliable deliveries. The retail sector is embracing technologies like automated warehouses, optimised delivery routes, and even drones to streamline operations and improve delivery efficiency.
Sustainability in logistics is becoming a crucial factor as well. Brands are introducing eco-friendly measures, such as electric vehicles and biodegradable packaging, to cater to growing consumer demand for responsible business practices. These innovations not only improve the speed and efficiency of the supply chain but also help reduce the environmental impact of retail operations.
“As logistics plays a key role in retail, it is critical to focus on integrating sustainability into the supply chain,” added Vijay from Clickpost. “Using advanced logistics platforms can help retailers optimise deliveries while reducing carbon footprints, providing both operational efficiency and environmental responsibility.”
4. Sustainability Across Retail Operations
Sustainability continues to gain traction as a significant trend for 2025. From packaging to energy use, retailers are under increasing pressure to reduce their environmental impact. Many are opting for sustainable materials, eco-friendly packaging, and energy-efficient practices across their operations. Consumers are more environmentally conscious than ever before, and retailers that prioritise sustainability will be able to differentiate themselves in a competitive market.
In addition to sustainable product offerings, retailers are also embracing more sustainable business models. This includes everything from sourcing ethically produced materials to implementing circular economy practices that reduce waste and encourage product reuse.
Retailers can further elevate their sustainability efforts by embracing technology that optimises supply chain processes and reduces waste. By integrating AI and data analytics, companies can minimise overstocking and excess waste while maintaining an efficient supply chain.
5. Experiential Malls
Experiential malls are redefining the retail landscape by blending shopping with immersive experiences that drive foot traffic and enhance customer loyalty. Developers are incorporating unique attractions such as rooftop parks, amusement facilities, entertainment zones, and community-focused events to engage shoppers beyond traditional retail offerings. Malls like those operated by Lulu Group, Pacific Group, and Inorbit Malls are leading this shift, with features like large-scale amusement rides, fitness events, and interactive spaces becoming key revenue drivers. As consumer expectations evolve, future mall designs are prioritizing flexibility to accommodate emerging trends and provide a mix of retail, recreation, and local community engagement.
Also, by integrating innovative store formats, interactive displays, and technology-driven experiences, brands can captivate customers in new and exciting ways. Whether through interactive product demos, digital signages, or virtual reality experiences, experiential malls will become essential for brands looking to create a lasting impression on their customers.
Looking Ahead
Retailers must continue to innovate, embracing trends such as quick commerce, AI-powered omnichannel experiences, and sustainability to stay competitive. As brands adopt more sustainable practices and leverage emerging technologies to enhance their operations, they will be well-positioned for growth.
Additionally, the integration of experiential malls and continued investment in logistics innovations will provide the necessary infrastructure for retailers to meet rising consumer demands.
