SHIFTS THAT SIGNAL GROWTH

Claudia Jayatilleke foresees a future of possibility that’s worth embracing

Sri Lanka’s retail landscape has transformed significantly over the recent past. From product discovery to payment methods, the shift has been rapid, tech driven, and shaped by economic changes and digital influence.

So what are the retail trends that are redefining the Sri Lankan market today?

One of the most notable retail shifts in recent times has been the rise of Buy Now, Pay Later (BNPL) services such as Mintpay and Koko. These platforms have made previously unaffordable or delayed purchases easier for consumers. By allowing customers to split payments into manageable instalments, they have expanded access to fashion, beauty, electronics and other sectors without the burden of credit cards or bank loans.

BNPL has also enabled brands to increase conversion rates and basket sizes.

Many customers use these options not only to split payments but also for the Pay Now feature. It’s an incredibly convenient service for buyers because if they don’t have their credit cards with them, they can simply log into their mobile phones and complete a transaction in seconds.

A few years ago, warehouse sales in Sri Lanka were synonymous with ODEL, where shoppers would queue up eagerly for huge discounts. Today, most major fashion and lifestyle brands are hosting large-scale sales throughout the year, and enticing consumers to schedule their shopping times to avail themselves of the discounts on offer.

Even premium brands face pressure to offer discounts and this presents a challenge for retailers. Once customers get used to regular discounts, expectations rise and this make it hard for brands to maintain their pricing without losing sales.

However, some smart brands have broken free of this cycle by focussing on exclusivity, quality and customer experience, instead of competing on price. This is an approach that protects long-term brand value and sustainability.

Today, micro influencers with a few thousand loyal followers are taking centre stage. Their content is raw, personal and often filmed in everyday settings, which makes it feel real and relatable. That authenticity translates into stronger engagement and higher conversion rates.

As a result, brands are shifting away from high cost celebrity endorsements and partnering with multiple micro influencers, each with a niche audience. And the focus has moved from fame to genuine storytelling.

It was only a few years ago that influencer marketing was rife with inconsistencies: one day it was promoting skincare, the next day it was junk food or slimming teas. Audiences soon saw through the inauthenticity. Now, brands are more discerning; they’re choosing influencers who are selective with partnerships and aligned with their values.

Consumers are more conscious than ever. They know when a recommendation is real and when it’s simply another paid post. In today’s retail landscape, authenticity builds trust. And trust is everything!

A major shift in Sri Lanka’s retail landscape is the rise of small homegrown brands that are reshaping the industry. Once dominated by a few players, the market now thrives on lower entry barriers, social media and a new wave of creative entrepreneurs.

Many begin as home ventures selling handcrafted jewellery, artisanal foods or custom clothing, and then grow via platforms such as Instagram and Facebook without the need for physical stores.

In fashion, beauty and wellness, there’s a move away from generic products and towards authentic locally inspired goods. Consumers now seek brands that offer not only products but also tell stories, have a soul and a genuine connection.

Even as e-commerce grows rapidly, Sri Lanka’s physical retail businesses are also experiencing a strong comeback through modern malls. Despite the ease of online shopping, consumers still value the immersive and tangible experience of visiting malls, not only to make purchases but also for ambience and social interaction.

Mall culture in Sri Lanka began with pioneers such as Liberty Plaza, Majestic City and Crescat Boulevard, which served as social hubs that went beyond shopping. Today’s modern malls – e.g. One Galle Face, Colombo City Centre (CCC) and Havelock City Mall – offer world-class multifunctional spaces for shopping, dining and relaxation.

This revival reflects a broader trend where consumers seek curated and meaningful in-person experiences with physical stores complementing rather than competing with digital platforms.

As these trends unfold, one thing is clear: Sri Lanka’s retail sector is undergoing a vibrant transformation. Once dominated by a few major players and predictable patterns, the market is dynamic, digital first and deeply consumer driven.

For businesses, success doesn’t lie in simply following trends but truly understanding what today’s shoppers value.

For consumers, it’s an exciting era with greater access to brands that are local, environmentally conscious and aligned with modern lifestyles. It’s a shift that signals growth, innovation and a future full of possibility that’s worth embracing.

Consumers are more conscious than ever