Retail is India's largest industry, accounting for over 10 per cent of the country's GDP and around eight per cent of the employment. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve and many of these players have not tasted success so far. However, the future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations.
The emerging trends in the Indian organized retail sector are also adding up to the development of the Indian organized retail sector. The relaxation by the government on regulatory controls on foreign direct investments has added to the process of the growth of the Indian organized retail sector. Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India.
Modern retail has entered India as seen in sprawling shopping centres, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India.
The growth of the Indian organized retail sector is anticipated to be heavier than the growth of the gross domestic product. Alterations in people's lifestyle, growth in income levels, and encouraging conventions of demography are proving favorable for the new emerging trends in the Indian organized retail sector. The success of this retail sector would also lie in the degree of penetration into the lower income strata to tap the possible customers in the lowest levels of society. The demands of the buyers would also be enhanced by more access to credit facilities. With the arrival of the Transnational Companies (TNC), the Indian retail sector will undergo a transformation. At present the Foreign Direct Investments(FDI) is not encouraged in the Indian organized retail sector but once the TNC'S get in they inevitably try to oust their Indian counterparts. This would be challenging to the retail sector in India.
Some Key Facts:-
Retail is India’s largest industry, accounting for over 10 per cent of the country’s GDP and around eight per cent of the employment- The market size of Indian retail industry is about US $312 billion- Organised retailing comprises only 2.8 per cent of the total retailing market and is estimated at around US$ 8.7 billion- The organised retail sector is expected to grow to US $ 70 billion by 2010
BOOMING RETAIL SECTOR IN INDIA:
INDIA is one of the most attractive destinations for retailers from all across the globe. Thanks to the entry of corporate, changing consumer behaviour & lifestyle, increasing influence of western culture and rising income, the Indian retail industry has seen phenomenal growth in the last five years (2001-2006) and organized retailing has finally emerged from the shadows of unorganized retailing and is contributing significantly to the growth of the overall retail sector, according to ''Booming Retail Sector in India”, a new market research report. The research report helps the client to analyze the opportunities and factors that will make the Indian retail industry a success.Key Findings- Organized retail market in India is expected to reach US$ 50 Billion mark by 2011. - Number of shopping malls is expected to increase at a CAGR of more than 18.9% from 2007 to 2015. - Rural market is projected to dominate the retail industry landscape in India by 2012 with total market share of above 50%.- Organized retailing of mobile handset and accessories is expected to reach close to Rs. 5000 Crore by 2010. - Driven by the expanding retail market, third party logistic market is forecasted to reach US$ 20 Billion by 2011. - Apparel, along with food and grocery, will lead the organized retailing in India.
Key Issues Analyzed-
What is the market size and scope of the retail industry in India?- What are the current market trends?- What are the growth prospects and issues related to the industry?- What is the segment-wise size of the organized market and what are the growth prospects of the market?- What are the opportunities and challenges faced by the industry?- Who are the major players in the Indian retail industry and what are the latest developments?Key Players AnalyzedThis section covers the key players currently operating in the Indian retail industry, including Subhiksha, Reliance Retail Ltd, Pantaloon Retail (India) Ltd., etc.
Research Methodology UsedInformation SourcesInformation has been sourced from books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases.Analysis MethodThe analysis methods include ratio analysis, historical trend analysis, linear regression analysis using software tools, judgmental forecasting and cause and effect analysis.