"Today retail clients don't want to overspend and have very strict ROI expectations. They also want us to deliver the entire project within the allotted budget. This often involves creative problem-solving to deliver high-quality designs without exceeding financial constraints. The trend essentially requires designers to be more strategic and innovative in their approach, ensuring that design elements not only enhance aesthetics but also contribute to the bottom line,” says Ashateet Saran, Founder of SA Studio, while sharing his thoughts on the Indian retail design industry – its growth trajectory, opportunities and challenges.

Speaking about client spends on stores, Ashateet says he sees a marginal increase post-COVID. "Costs of raw materials and labour have gone up, so clients have to bear that cost," he explains. While there is a slight uptick in spending, it is driven more by necessity than a desire to splurge on extravagant designs, he shares. Indeed, as Ashateet emphasises, today's retail clients are more focused than ever on ensuring that every rupee spent translates into tangible returns, and they are increasingly budget-conscious due to their own cost pressures and the need to drive profitability. 

"Clients are educated enough to know the limitations of their budgets," says Ashateet, noting that this awareness helps in setting realistic expectations and achieving satisfactory outcomes.

But Ashateet does acknowledge the significant growth potential for the Indian retail design industry. "We have seen year-on-year growth of around 20 to 40%," he notes and adds, “The Indian retail industry is currently on a growth trajectory and this growth reflects the expanding market and the increasing sophistication of retail spaces in India.” He feels this growth is fueled by a robust demand for innovative retail spaces that enhance customer experiences and drive profitability. 

The challenge of finding right talent

But for the industry to grow would mean having the right talent in place. Like many others in the industry, Ashateet feels finding the right pool of talent is a big challenge in this industry, pointing out the need for specialised skills in retail design, that not all architects or interior designers possess. To address this, SA Studio focuses on in-house training, recruiting architects and designers interested in retail, and providing them with the necessary exposure and training.

Innovations and Sustainability

One trend that Ashateet finds particularly noteworthy in retail, is the shift towards sustainability. "Sustainability is coming to the forefront," he says, emphasising the increasing importance of eco-friendly practices in retail design. He informs that SA Studio has already implemented sustainable practices in projects such as water recycling in salons, earning international recognition for their efforts.

Ashateet also believes that integrating sustainability can also enhance ROI in the long run. "We are doing our own R&D to understand how to integrate sustainability without impacting ROI," he explains. 

Technology: Need is for intuitive solutions 

Ashateet also views technology as a critical yet underutilised component in Indian retail. "Tech integration is still a challenge because it's not happening rapidly," he notes. This slow adoption is partly due to customers' reluctance to embrace new technologies, particularly in high-traffic, multi-brand retail environments, he says. 

"Most customers are not willing to use much technology," he observes, indicating a need for more user-friendly and intuitive tech solutions that enhance the shopping experience without overwhelming the consumer.

Well, it comes back to the point about the increasing need for retail designers to be problem solvers for their retail clients  - whether it is by thoughtful tech integration, an aesthetically curated brand story telling or a sustainable design process.