More than half of all retailers are planning to onboard fresh graduates this year, GI Group Holding’s Survey

Pune : GI Group Holding’s latest report “The Great Indian Consumption Story” unveils a dynamic landscape in retail, E-commerce, and logistics, marked by a surge in job interest, particularly among youth, and a rapid embrace of cutting-edge technology. The ultimate goal of this study is to create a transformative and enriching labor market that benefits employees, organizations, and society.

As businesses gear up to meet the evolving demands of consumers, a notable trend emerges in hiring practices. More than half of all retailers (52%) are planning to onboard fresh graduates this year, while two out of five (38%) seek to recruit experienced professionals. This emphasis on talent acquisition reflects the industry’s commitment to fostering growth and innovation.

In 2023, the retail industry experienced a notable 8% rise in job applications, while demand surged by 18%, indicating a robust interest in retail roles. Of particular note, 86.86% of applicants were aged between 18 and 30, signaling a strong inclination among the youth towards careers in retail. Tier-1 cities emerged as hubs for job seekers, constituting 58.49% of the total applicant pool, followed by tier-2 and tier-3 towns. This distribution trend is expected to persist, reflecting ongoing industry dynamics.

Conversely, the logistics sector faced a 13.89% decline in active jobs during Q3 FY24, attributed to challenges during peak season fulfillment. However, the onset of 2024 saw a promising 10.24% increase in new job postings, with projections of continued growth leading up to this year’s peak season.

According to this research, e-commerce is experiencing exponential growth and is projected to reach INR 26 trillion by 2030 from its current market size of INR 8.2 trillion. This staggering growth trajectory underscores the increasingly prominent role of digital commerce in India’s economy. Furthermore, the post-COVID-19 years have witnessed a significant surge in retail consumption, fueled predominantly by Gen Z and women, who account for 42% of this growth. Their changing preferences and shopping habits have reshaped the retail landscape, driving innovation and adaptation across the sector.

However, amidst this growth, challenges persist. The report highlights a pressing need for skill development, with 83% of retailers expressing a desire to close skill gaps in sales/marketing, followed closely by logistics (77%) and tech/analytical skills. Bridging these gaps is crucial to sustaining growth and competitiveness in an increasingly digital marketplace.

Tech adoption emerges as a critical factor in driving growth and efficiency within the retail and e-commerce sectors. Businesses experiencing high growth demonstrate a higher level of tech adoption, emphasizing its role in reducing costs, managing inventory, and enhancing user experience.

The transformative impact of technology extends beyond e-commerce platforms to logistics firms, which are increasingly turning to cloud solutions (54%) and AI automation (37%) for last-mile deliveries. Leveraging IoT (40%) for supply chain management further underscores the industry’s commitment to innovation and efficiency.

Post-COVID-19, e-commerce and related apps have witnessed sustained increases in demand, surpassing on-demand delivery apps for food and groceries. This shift in consumer behavior underscores the enduring appeal and convenience of digital commerce platforms. Cities with fast and healthy e-commerce growth include Bangalore (93%), Mumbai (92%), and Chennai (88%).

Sonal Arora, Country Manager at GI Group Holding, said, “India’s Retail, E-commerce and Logistics sectors have witnessed phenomenal growth fueled by factors such as increasing internet penetration, smartphone adoption, and a burgeoning middle class. This growth has led to a surge in demand for efficient logistics solutions to handle last-mile delivery challenges, especially in Tier II and Tier III cities. E-commerce and Retail giants and startups alike are investing heavily in technology-driven logistics infrastructure, including warehouses, fulfillment centers, and delivery networks, to streamline operations and elevate customer experience. Nonetheless, the sector continues to evolve rapidly, presenting lucrative opportunities for innovation and investment.

Our report aims to offer valuable insights into industry growth dynamics, emerging consumer trends and the challenges faced by businesses. Furthermore, it will also shed light on the pivotal role of technology, the diverse career pathways available to India’s workforce and the crucial transition towards sustainable practices within retail and logistics.”

Emerging trends in the employment sector:

Job trends are shifting: retail is growing, driven by personalized service; logistics is slowing due to supply chain challenges, and e-commerce is hiring selectively to adapt to changing demands.

• In 2023, retail job applications rose by 8%, while demand surged by 18%. Notably, 86.86% of applicants were aged between 18 and 30
• In contrast, tier-1 cities witnessed the highest influx of applicants, accounting for 58.49% of the total, followed by tier-2 and tier-3 towns. This distribution pattern is anticipated to continue throughout the current year, reflecting ongoing trends within the industry.
• Those E-commerce businesses that outsource delivery services do so mainly to reduce costs (24%), focus better on sales and marketing (20%), and facilitate easier scaling of their business (15%)
• In the logistics sector, active jobs fell by 13.89% in Q3 FY24 during peak season fulfillment. However, new job postings increased by 10.24% at the start of 2024 and are expected to continue rising leading up to the peak season this year.
• Diversity hiring is a focus, with 30% of retailers seeking female candidates and 40% of E-Commerce firms prioritizing DEI initiatives
• In terms of AI and Automation, E-Commerce leads with a 56% adoption rate compared to Logistics at 37%
• Post-COVID, E-commerce and related apps (55%) saw a slightly higher sustained increase in demand compared to On-demand delivery apps for food and groceries (45%)
• The most in-demand product categories in the domain are Electronics and Gadgets (67%), Beauty and Personal Care (46%), and Fashion and Lifestyle (42%), reflecting changing consumer trends during and after the pandemic.

The report serves as a roadmap for industry stakeholders, policymakers, and investors seeking to navigate the complexities and capitalize on the opportunities inherent in India’s retail and e-commerce sectors.

Click on the link to download the report: https://www.gigroupholding.com/india/the-great-indian-consumption-story/

About Gi Group Holding, India:

Gi Group Holding, India, is among the world’s leading companies providing services for the evolution of the Labor Market, by offering services in various domains of talent acquisition and management.

The group is active in the field of Temporary and Permanent Staffing, Site Managed Services, Search & Selection, Domestic & International Recruitment, Recruitment Process Optimization (RPO), Executive Search and HR Consulting & Training. With direct and indirect presence and strategic partnerships in about 60 countries across Europe, Asia, America and Africa. Gi Group has developed a strong expertise through its specialist divisions and dedicated local and international teams.

Gi Group has been present in India since last two decades, helping clients implement highly crucial projects by hiring and managing great talent.  In India Gi Group actively works with leading corporate customers across the country through a network of offices in 10 major cities