Retail Uprising-Untapped Opportunities in Indian RetaiL
Transcript of Retail Uprising-Untapped Opportunities in Indian RetaiL
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Retail Rising: Untapped Opportunities in Indian Retail
India has emerged as the fifth most favorable destination for international retailers, outpacing UAE,
Russia, Indonesia and Saudi Arabia, according to A T Kearneys lobal Retail !evelopment Inde"
#R!I$ %&'%( )o*ever, there is a lot more to be done on both fronts before they reach closer to the finish
line( +usinesses across sectors have been coming up *ith uniue solutions to meet the demands of theIndian mar-et( Retail sector has been no different( Retailers across the country have realised that the
consumer is loo-ing for uality goods at efficient pricing(
Massive Opportunities in Retail in India
.actors such as large mar-et si/e, lo* organi/ed retail penetration and increasing personal incomes ma-e
India an e"citing and dynamic retail destination( 0ith a mar-et si/e of US1 23& +n in %&'%, the retail
mar-et in India is e"pected to be US1 342 +n by %&'3( The retail mar-et in India has gro*n at a
compounded annual gro*th rate #5AR$ of 3(6 per cent since '667( 0hile close to 8& per cent of the
total mar-et belongs to the food and grocery retail chains, the other broad segments include categories
such as clothing and fashion stand at 6(6 per cent( +eauty and *ellness account for 2 per cent, electronicsfor 8(2 per cent and furniture and furnishings for 9(2 per cent(
+ut even at such a robust gro*th rate, the organi/ed retail is :ust a small fraction of the total retail
industry in India( At the end of %&'';'%, the share of organi/ed retail stood at 3 per cent share of the total
retail mar-et in terms of penetration and the rest 63 per cent is penetrated by the unorganised retailers
*ith over '% million mom;and;pop stores(
5learly, there is a huge opportunity for organi/ed retailers to prosper in the Indian mar-et( It is believed
that the share of organi/ed retail *ill go up to 6 per cent by the end of %&'3;'8 and %& per cent by the end
of %&%&;%'(
Banking on the FDI Movement
Till no*, .!I up to '&& per cent *as allo*ed for cash and carry *holesale trading and e"port trading
under the automatic route, and .!I up to 3' per cent *as allo*ed in single;brand retail, *ith prior
government approvals( )o*ever, the 5abinet 5ommittee on Economic Affairs #55EA$ recently
permitted .!I up to 3' per cent in multi;brand retailing *ith prior overnment approval and '&& per cent
in single brand retailing thus further liberalising the sector(
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=rima facie, .!I in multi;brand retail *ould benefit capital constrained retailers, accelerating the pace of
investment in the supply chain to meet demands of increasing scale and enhancing efficiencies #offering
competitive prices$, besides e"pertise of foreign retailers, >=