8/12/2019 Retail Uprising-Untapped Opportunities in Indian
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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(
