Sunday 8 March 2015

India's Retail in Detail - India Opportunities

This article mostly talks about the Organized retail opportunities in India.
So what is Organized retail :
Organized retail or modern retail is usually chain stores, all owned or franchised by a central entity, or a single store that is larger than some cut-off point. A single large department store is also modern retail. (ICRIER)
The Indian retail industry is expected to grow around in great CAGR percentage in next 7-10 years.There is lot of space for Organized retail industry in India. 95% of the current Indian Retail is traditional retail market , remaining  5% is the only organized retail.

 There are few Indian players in the market
1. Trent is in agreement with British Player Tesco Plc
2.Pantaloon retails
3. Shoppers Stop
there are other players as well .

Table attached below shows the share of Indian Organized retail as compared to total retail sales.

Source : ICRIER

There are reasons for the growth :

  1. Changing family structures in India , demanding childrens .
  2. Changing family level organization/role definitions and exposure.
  3. More nuclear families.
  4. Increase in the number of working women.
  5. Kids being more informed and demanding.
  6. Increasing exposure to and influence of cosmopolitan media; consequent adoption of Western habits.
Source : Trent

References taken from :

1. FICCI reports
2. Annual reports of Trent
3. Reurbanist

Image Source : WikiPedia

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