Organised retail is poised to reach $ 1.3 trillion by 2020 and provides a tremendous growth opportunity for retailers.

The story of India’s growth and consumption potential remains intact, over the last decade with rising incomes coupled with proliferation of consumer products, and increased urbanization. According to the Global Retail Development Index 2012, India ranks fifth among the top 30 emerging markets for retail. The recent years have witnessed rapid transformation in customer behavior and vigorous profits across various categories. This can be attributed to the overwhelming acceptance of Indian consumers to modern retail formats. Organized retail, which constitutes 8 per cent of the total retail market, is expected to grow much faster than traditional retail. It is poised to reach $ 1.3 trillion by 2020 and provides a tremendous growth opportunity for retailers.

Foreign Investment:     

The country is fast becoming an exciting and dynamic retail destination for foreign investment. The advent of FDI will open up strategic investment opportunities for global retailers, who have been waiting to invest in India. It will give the necessary fillip to the growth of the economy.

Challenges faced by the industry:

Though modern retail offers immense opportunity to retailers, the market poses its own challenges. The sector is facing immense competition with mom-and-pop (kirana) stores, which cater to customers within their neighborhood. Customers find shopping more comfortable at a local store for their day-to-day needs. This can be addressed by positioning modern retailers in a manner which differentiates them from a local vendor. Other challenge exists is sky rocking retail real estate costs due to which it is becoming difficult to achieve break-even. More and more retailers are now willing to go multi-channel way. Digital commerce provides brick retailers to expand their reach without investing in expensive real estate. Besides, retailers have to offer the consumers more width and depth.

The Indian modern retail is lacking behind the pace consumerism is developing in India. As an industry level, retail needs to be more consolidated and at the same time a lot of Government policies are required to create a level playing field.


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