Maier Vidorno Altios

RETAIL SECTOR OVERVIEW

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

Retail Industry in India - Maier Vidorno Altios India

Summary/Snapshot​

Retail Industry

  • India currently has the world’s fourth-largest retail market. The Indian retail industry is expected to grow to 1.5 trillion dollars by 2030, up from $0.793 trillion in 2020, representing an almost $700 billion increase in market size in this decade.
  • Big Bazaar announced its expansion into the instant home delivery service in March 2021, intending to provide a 2-hour delivery guarantee. The service is currently available in Delhi NCR, Mumbai, and Bengaluru.​
  • Many Indian retailers are adopting Omni-channel retailing. Croma, Reliance Retail Ventures, Aditya Birla Fashion and Retail Limited, and OnePlus are among the companies that have adopted Omni-channel retailing.​​
  • In FY22, the retail sector contributed $800 billion to India’s GDP and employed 8% of the country’s workforce (35 million people). By 2030, it is anticipated to have created 25 million new jobs.
  • Hyper-personalization models based on behavioral data, brand performance, demographics etc. are used by Indian merchants to increase sales.
  • Acceptance and usage of E-retailers by consumers is growing as a result of ease and secure financial transactions and the pandemic.​
  • Major retail segments are fast-moving consumer goods (FMCG), clothes & footwear, and consumer electronics, which account for 65 per cent, 10%, and 9% of the market, respectively.​
Retail Industry - Maier Vidorno Altios India

Growth Drivers

  • Food products manufactured in India and in single-brand retail allow 100% FDI is authorized via the automatic route.​
  • To encourage E-retailing in consumer durables, the online retail segment offers cash-on-delivery and manufacturer’s warranty. Cash-on-delivery is the favored payment method in India, with over 30% of buyers choosing it.
  • Significant growth in surplus money and changing lifestyles are the two main factors in Indian retail. India will add 140 million middle-income and 21 million high-income families by 2030.​

Sub industries​

  • Apparel​
  • Fashion Accessories​
  • Food & Beverage​
  • Footwear​
  • Furniture & Furnishing​
  • Kitchenware & Tableware​
  • School & Office Supplies

Opportunities

  • According to ASSOCHAM, India’s luxury market will expand to US$ 30 billion by the end of 2020, up from US$ 23.8 billion in 2017. This is due to increased exposure to international brands among Indian youth and the higher spending power of the upper class in tier II and III cities.​
  • Global retailers such as Walmart, Tesco, and JC Penney are boosting their sourcing from India by establishing their own wholly-owned/wholly-managed sourcing and buying offices, rather than using third-party buying offices.
  • In 2020, the retail sector in India attracted US$ 6.2 billion in equity and venture capital funding.​

Challenges

  • The retail industry’s biggest problem is attracting and keeping customers.​
  • The retailers are not in direct contact with farmers, producers, or manufacturers. Retailers then seek the services of middlemen, which expands the supply chain and raises the price of the final product.​
  • For a long time, India’s retail industry has remained disorganized. There are no standard procedures or plans that can help a retailer start and run a store.​
  • High maintenance expenses, the growth of E-commerce, and changing customer expectations are among the key issues facing the retail industry.​

Key Investment Opportunities

  • The government’s focus is on supply chain-related infrastructures such as cold storage, abattoirs, and food parks, and this segment provides investment potential in food processing infrastructure.​
  • Food parks provide a unique opportunity for businesses, including foreign investors, to enter India’s food processing industry.​
  • For 728 districts across the country, the One District One Focus Product (ODOFP) programme covers agriculture and associated products.​
  • Fabric processing equipment is available for a wide range of natural, synthetic, and speciality fabrics.​
  • There are numerous opportunities to invest in retail brands.​
 
 

Recent Developments

  • Retail tech companies supporting the retail sector with services such as digital ledgers, inventory management, payments solutions, and tools for logistics and fulfilment are taking off in India. In the first nine months of 2021, investors pumped in US$ 843 million into 200 small and mid-sized retail technology companies, which is an additional 260% of capital compared to the entire 2020.
  • Retailers should leverage digital retail channels (E-commerce), which would enable them to spend less money on real estate while reaching out to more customers in tier II and tier III cities. The online retail market in India is projected to reach US$ 350 billion by 2030 from an estimated US$ 55 billion in 2021, due to rising online shoppers in the country.
  • India is expected to become the world’s third-largest consumer economy, reaching US$ 400 billion in consumption by 2025. Healthy economic growth, changing demographic profile, increasing disposable income, urbanisation, and changing consumer tastes and preferences are some of the factors driving growth in the organised retail market in India.

Key Players in India

National

  • Rallis India Limited
  • Nuziveedu seeds limited​
  • Advanta Limited
  • Poabs Organic Estates​
  • National Agro Industries​
  • Godrej Agrovet Limited​
  • Rasi Seeds​
  • Jain Irrigation Systems​
 



International

  • BASF​
  • Bayer AG​
  • CNH Industrial​
  • DowDuPont​
  • Syngenta AG​
  • Cargill​
  • CLAAS​
  • Deere & Company​

We have completed over 8,000 projects worldwide & 1500 projects in India in nearly every business segment.

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