OVERVIEW OF THE SECTOR RETAIL

Statistics, news & updates: everything you need to know about the Retail Industry in India

Indian supermarket

 

  • Summary
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats

Summary

With more than 13 million retail outlets, the Indian Retail sector is mainly unorganized. Most Indian shopping happens in open markets or in the numerous small grocery shops. Shoppers typically wait outside the shop, ask for what they want, but can’t pick or examine a product from the shelf. In the last years, the Indian Retail sector has seen great growth in the organized segment. Both, major domestic and international players have stepped into the retail sector with ambitious plans to expand their business across verticals, cities and formats. With a changing lifestyle, an increase in disposable income and the growing preference for branded products, the claims of customers have changed. This has led to an immense growth in the organized sector with more than 1500 supermarkets, 325 departmental stores, and 300 new malls are being built.

With permitting 100% FDI in the single brand retail and 51% in multi-brand retail, the Indian Government wants to further accelerate the Retail Industry. The sector accounts for over 10% of the GDP and around 8% of the employment in India. Due to the entry of several new players, the sector has emerged as one of the most dynamic and fast-growing industries.

Map- Industry Clusters

Growth Drivers

  • India’s Retail and Logistics Industry employs about 40 million people
  • The online retail market is expected to grow from $6 billion to $70 billion during FY15-FY20
  • India’s modern consumption level is expected to grow to $1.5 trillion from the present level of $750 billion
  • Rising income and demand for quality products to boost consumer expenditure
  • FDI inflow from April 2000 to December 2016, in the retail sector, was $935.74 million

Key Players in India

International

  • Walmart, Metro AG, Amazon, Target Corporation, Best buy Co, Ikea Retail

National

  • Lifestyle, Pantaloons, Shopper’s Stop, Bata India, V Mart, Cantabil, Reliance fresh, Future retail, Trent, Spencers, Big Bazaar

 

Market Stats

  • India’s retail market is expected to touch $1.3 trillion by 2020 from $672 billion in 2015
  • The sector is growing with a CAGR of 16.7% between 2015-2020
  • The Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of the sales
  • The amount of supermarkets has increased to 8,500 in 2016 from 500 in 2006