Retailers to continue hiring in 2024, focus on tier 2, 3 cities : Report
The retail industry is anticipated to witness a significant surge in employment opportunities in 2024, a trend carried over from the operational expansion of brands initiated in 2023. This expansion is expected to bolster job demand by 15-20% within the sector. Despite the challenges faced by the e-commerce segment, including layoffs and budget restrictions, the continued adoption of technology, a focus on sustainability, and the need for skill development remain pivotal trends in an era of exponential e-commerce growth.
Retail stores are positioned at the forefront of job demand for the upcoming year. This follows the trend set in 2023 when retail job demand surged by 18%, driven by brands making operational the spaces they had acquired. The Milan-based recruitment solution firm, Gi Group, anticipates a continuous demand within the range of 15-20% for retail jobs in 2024. E-commerce entities, despite their significant role in the startup ecosystem, face hiring constraints amid more selective recruitment processes. Concurrently, the logistics sector observed a decline in active job postings by nearly 14% in the third fiscal quarter, amidst peak season fulfillment requirements.
The recruitment strategy for the retail sector indicates a preference for fresh talent, with more than half of the retailers (52%) looking to hire fresh graduates, and a substantial portion (38%) seeking experienced professionals. Sonal Arora, the Country Manager at GI Group Holding, highlights the ongoing expansion in tier 2 and 3 cities as a key driver for the creation of job opportunities. “India’s substantial consumer market continues to attract both domestic and international brands, paving the way for considerable job creation across the country,” Arora emphasized.
The demographics of applicants reflect a youthful workforce, with a majority (86.86%) falling within the 18-30 age group. Tier-1 cities presently host the largest pool of applicants, although tier-2 and tier-3 cities are not far behind, evidencing the expanding reach of retail opportunities.
Aside from the domestic market, international luxury and premium brands are setting sights on India for expansion, contributing to the job market’s growth. This trend is anticipated to continue throughout 2024, enhancing job prospects in various cities and segments of retail, including the rapidly growing e-commerce sector. Cities like Bangalore, Mumbai, and Chennai are leading the e-commerce growth, showcasing the sector’s vibrant potential.
Sustainability practices are also making headway among retailers, with 40% adopting energy-efficient store designs. This strategic move not only enhances their brand reputation by 47% but also provides a competitive edge to 40% of them.
Looking into the future, e-commerce is poised for transformative growth, with projections indicating a rise to Rs 26 trillion by 2030 from the current Rs 8.2 trillion. This growth is largely attributed to the evolving preferences of Gen Z and women, who have been pivotal in reshaping retail dynamics post-COVID-19. Despite the optimistic outlook, the industry faces challenges in skill development, with a significant percentage of retailers aiming to bridge the skill gap in various domains, including sales, marketing, logistics, and tech.
Technology adoption remains a cornerstone for success in retail and e-commerce, with high-growth businesses demonstrating a keen investment in tech advancements. This includes the use of AI, cloud solutions, and IoT to streamline operations, manage inventories efficiently, and enrich customer experiences. The post-pandemic period also saw a surge in demand for e-commerce and related applications, further underlining the sector’s growth potential.
In terms of product demand, electronics, beauty and personal care, and fashion and lifestyle categories have seen the highest consumer interest. These trends reflect the changing consumer behavior and preferences that have emerged during and after the pandemic, showcasing the dynamic nature of the retail landscape in India.
As 2024 approaches, the retail industry in India is gearing up for an exciting phase of growth and expansion, particularly in tier 2 and 3 cities. With a focus on technology, sustainability, and skill development, the sector is well-positioned to meet the evolving demands of consumers and embrace the opportunities that lie ahead.
