The statement by our Honourable Prime Minister, “Bharat Badal Raha Hai” (India is Changing), captures the structural transformation of India’s consumer market.
EY (2025) reported that despite global disruptions, India’s consumer sector remains resilient, supported by rising purchasing power and aspirations of its expanding middle class.
The India Brand Equity Foundation(2025) further projects that, with a population of 1.4 billion, India will become the world’s third-largest consumer market by 2026, after the United States and China.
Furthermore, the young Indian is a digital native, showing increased awareness, aspirational purchasing habits, and a demand for products and services that meet global standards.
Additionally, what was once an urban metro trend, improvements in infrastructure, job opportunities, and hybrid work setups have led to similar purchasing patterns across Tier II and Tier III cities.
In short, in this dynamic and turbulent marketplace, consumers have become SMART and expect brands to SMARTen up too.
Firms often respond to these changing consumer sentiments through two primary strategic approaches. One end of the spectrum includes companies that utilise disruptive innovation1 and alter the product category trajectory by offering products that meet previously unmet latent consumer needs.
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Amazon is a prime example. Initially a niche online bookstore, it rapidly evolved into a global retail and technology giant, revolutionising shopping habits and raising customer expectations for convenience.
Similarly, Nykaa, a digital-first beauty platform, has made premium and niche brands accessible to aspirational Indian consumers, transforming perceptions of retail in the beauty sector.
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Another instance is Carvaan, a simple-to-use, single-button retro music device that disrupted the market by making technology accessible to older, less tech-savvy consumers. Overall, these platforms establish short-term competitive positions that later evolve into long-term competitive advantages.
Conversely, firms may adopt a resource-based view approach, in which they maintain a competitive advantage by leveraging existing core competencies2 and brand equity while gradually adapting to consumer demands.
Here, organisations create unique, firm-specific core competencies that enable them to outperform competitors by doing things differently.
Interestingly, these firms also evolve and change; however, the change is built on making moves that lie adjacent to their core. This works as the firm’s core competencies can be tweaked, and/or replicable models can be introduced.
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Thus, Apple strengthens its core competency in design and ecosystem integration through the iOS platform. Therefore, while iPhones remain central, services like iCloud, Apple Music, and the App Store extend consumer engagement without deviating from their technological foundation.
Walmart exemplifies this approach by enhancing its core competency in logistics and scale through omnichannel retailing, such as curbside pickup and online ordering, without abandoning its “Everyday Low Price” positioning.
Similarly, Smart Bazaar, built on the legacy of Big Bazaar, sustains the value-retailing proposition while refreshing assortments and modernizing formats.
The Big Bazaar (BB) story is compelling, as it changed hands from the Future Group to Reliance Industries, yet retained its core identity. The saga offers valuable takeaways for companies, showing how they can evolve while maintaining consistency and consumer trust.
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The Bazaar for Every Indian
Kishore Biyani, Chairman of the Future Group, forayed into organised retail with a unique hypermarket.
Recognising aspirational Indian consumers eager to shop at globally comparable retail outlets, Biyani combined the vibrant chaos of an Indian bazaar with modern amenities like self-service, air conditioning, parking, and return options.
Thus, the first Hindustan ki Dukaan (India's Store), Big Bazaar (BB), was launched in 2001. The store offered a wide range of products, including groceries, kitchen and household items, clothing, luggage, and more.
A balanced mix of private labels and mass brands, across both packaged and unpackaged staples, enabled BB to respond to consumers’ latent desire for upscaling while accommodating those hesitant to shop at a typical hypermarket.
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Its focus was on the mass market, promising Umeed se dugna (more than expected) value. The Indian consumer loved the option, and a rapid adoption of the format ensued. Biyani was buoyant, and Big Bazaar was as busy as a bustling Hindustani haat.
On a typical weekend day, 20,000 consumers rubbed shoulders with each other in the 50,000 square foot area. India had finally got its own Walmart, but with home-grown core competencies, marking India’s entry into organised retail.
With all aspects of the Indian consumer’s pulse in mind, the firm refined its business model and experienced significant growth, expanding nationally into tier II and III towns.
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However, the growth rate, competition from e-commerce giants like Amazon and Flipkart, evolving consumer sentiments, and, to top it all off, the 2020 pandemic, were enough to derail the pioneering story of homegrown retail.
Bad debts and faulty lease rentals, amongst others, led the Future group to seek anew patron for their beloved Big Bazaar in 2020. After a tumultuous courtroom battle and numerous highs and lows, in February 2022, the retail chain now had a new captain at the helm: Reliance Industries.
The transaction was positioned as a strategic move to integrate Future Group’s established formats and brands into Reliance Retail while safeguarding the broader business model.
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From Big to Smart: A Leap of Customer Faith
Big Bazaar’s new retailing chapter was distinct yet shared the nuance of recognising that the Indian marketplace had undergone a dramatic evolution over the last two decades. The consumer was being serviced not just by general and modern trade formats, but also by e-commerce and quick commerce.
Next was understanding the consumer's request for premium offerings, authenticity (natural) as a promise, and a seamless and satisfying experience. And the new benefactor responded by strategically recalibrating the Bazaar and giving it a new Avatar while keeping the core competency intact.
This transition involved redesigning store atmospherics to convey a modern and premium feel. Smart Bazaars featured brighter lighting, wider aisles, cleaner signage, and curated product displays that highlighted both convenience and aspirational shopping.
Dedicated premium sections displayed higher-quality private labels, imported packaged foods, and branded lifestyle items, expanding the customer value proposition. The physical environment was intentionally crafted to attract upwardly mobile consumers while remaining accessible to price-sensitive shoppers.
Interestingly, as Reliance refurbished the Bazaar, they also recognised the variation in the Indian customer segments. Thus, the firm curated three similar yet tweaked retail formats.
Interestingly, as Reliance refurbished the Bazaar, they also recognised the variation in the Indian customer segments. Thus, the firm curated three similar yet tweaked retail formats.
- Smart Point: Reliance Retail’s neighbourhood format operates 1,800+ stores across 600+ cities. With an area of 2,000–3,000 sq. ft., it offers groceries, FMCG, fresh produce, dairy, and pharmacy products at prices at least 5% below MRP. JioMart integration supports online ordering and delivery.
- Smart Bazaar: The hypermarket format spans 45,000–75,000 sq. ft., with 260 stores in 100+ cities. As multi-category megastores, they replicate global hypermarket models, catering to value-driven urban and semi-urban shoppers through variety and scale.
- Smart Superstore: With 400+ outlets in 200+ cities, these 15,000–25,000 sq. ft. stores combine compact convenience with large-format retail. They balance mass and premium offerings, serving both everyday needs and aspirational consumption, aligning with India’s trend toward convenience and premiumisation.
The annual report presented at the Annual General Meeting of Reliance Industries on August 29, 2025, revealed that Reliance Retail began its next growth phase in FY 2024, with an 8 percent increase in gross revenue to ₹3,30,943 crore (USD38.7 billion) and a 8.6 percent rise in EBITDA to ₹25,094 crore (USD 2.9billion).
The Smart Point, Smart Bazaar, and Smart Superstore formats were identified as key contributors to this performance.
Key Takeaways
Takeaway 1: Indian consumers are no longer static. Income growth, aspirations, technologyadoption, and urbanisation have changed their preferences.
Therefore, firms must Recognize these shifts, Respond to these Requests, and adapt accordingly.
Some brands that have successfully achieved this are exemplified in the 2x2 Price vs. Experience map below.
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Traditionally, Big Bazaar and Mother Dairy operated in the Mass–Basic quadrant, catering to affordability-driven consumers with limited focus on experience. However, as consumer aspirations evolved, both brands moved towards the Premium–Modern quadrant.
Big Bazaar’s transition to Smart Bazaar reflects this shift. Similarly, Mother Dairy diversified into premium milk, organic products, and value-added dairy to remain relevant to the upwardly mobile consumer.
Pantaloons moved from a Mid-Market fashion retailer to a more aspirational, youth-centric brand. Meanwhile, Fab India and Kwality Walls' premium portfolio occupied the Premium–Modern space.
However, while Kwality stayed constant, Fab India moved up the graph, enhancing brand heritage with contemporary experience stores. Thus, firms driven by customer expectations of both value and elevated experiences are migrating toward the Premium–Modern quadrant.
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Takeaway 2: Consumers are diverse, with different expectations. By offering diverse experiences through multi-format/brand expansion, retailers have expanded into related areas without losing their core principles. Two main approaches can be seen in this process.
The first involves brand extensions with the same brand identity, where retailers introduce multiple formats to serve different consumer groups while maintaining the underlying proposition.
Reliance with Smart Point, Smart Bazaar, and Smart Superstore and Nykaa with Nykaa Luxe, Nykaa Trends, and Nykaa Kiosks are apt examples here. Global luxury brands also follow this approach - Armani operates Armani Exchange and Emporio Armani to target different consumer tiers while maintaining a unified brand image.
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The second approach involves creating separate brand images to target multiple market segments without necessarily demonstrating a common link. This method allows for more precise positioning and prevents brand dilution.
Fashion designer Anita Dongre operates under two distinct brands: Anita Dongre, which offers high-end couture, and Global Desi, which specialises in affordable boho-chic designs.
Likewise, the Tata Group operates Westside, a fashion and lifestyle brand, alongside Zudio, its fast-fashion value brand.
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Here, it is interesting to note a hybrid combination by Spencers Retail, which serves two diverse sets of consumers.
The firm operates Spencers across Indian cities, catering to consumers who seek value for money while also seeking variety. For this chain, there are two retail formats: the smaller neighbourhood stores, referred to as simply Spencers, and the hypermarket megastores, known as Spencers hyperstores.
Additionally, Spencers Retail, operates a premium grocery brand, Nature’s Basket, catering to high-end customers who seek exotic groceries and gourmet options.
Conclusion
Therefore, to stay relevant in a rapidly changing consumer landscape, the business mantra is simple:
# Stay Connected: True to your core competency.
# Stay Connected: Stay in sync with consumer values.
# Stay Connected: Grow into new markets/categories but maintain the integrity and replicability of the original, uniquely crafted business model.
References
[1] Christensen, C.M., and Van Bever D.C.M.(2024) "Disruptive Innovation: How Can We Beat Our Most Powerful Competitors? (Abridged)." Harvard Business School Module Note 425-043, December 2024.
[2] Hamel, G. and C. K. Prahalad (1990). "The core competence of the corporation." Harvard Business Review 68, no. 3 (1990): 79-91.
