Initializing...

Top Retail Brands

»
«

Organise trade to get almost double in size by 2019

Currently, the total retail market size in the top six retail markets of the country amounts to Rs 4,539 bn and this is projected to reach Rs.7,168 bn by 2019.

Tags: organised retail, market, e-commerce, shopping

BY Indian Retailer Bureau  |  Feb 16, 2017  |  comments ( 0 )  | 
Organise trade to get almost double in size by 2019

Retail market in India is an amazing  assortment of formats. With the changing time, the concept of shopping has gone through tremendous shifts  in terms of format and consumer buying behaviour, ushering in a new era of modern retail across the country. With the development, augmentation and modernisation of infrastructure taking place at most major Indian cities, the scope of retail has increased manifold.

A joint study from RAI and Knight Frank titled ‘THINK INDIA. THINK ‘CONNECTED’ RETAIL 2017’ estimates that Currently, the total retail market size in the top six retail markets of the country amounts to INR 4,539 bn and this is projected to reach INR 7,168 bn by 2019.  However, modern retail penetration in India is abysmally low compared to the developed and emerging economies. While the share of modern retail is 84%, 71%, and 53% in the US, Singapore and Malyasia, respectively, it is only 19% of the value of the total retail spending in the National Capital Region, Mumbai, Chennai, Bengaluru, Pune and Hyderabad cumulatively. Overall, the degree of penetration in the country would be even lower, since the presence of modern retail in smaller cities and rural areas is not significant. In the forthcoming years, the share of modern retail in these top six cities is expected to be a quarter of the total retail spending by 2019.  Let’s throw light upon the key highlights of the report:

Omni-channel: A growing opportunity

Finally, we come to the latest retail wave where the e-tailing versus brick-and-mortar debate is not even relevant anymore; both have to be integrated seamlessly to create a satisfying shopping experience. This integration of experiencing the convenience of e-tail and brick-and-mortar is the third and the latest wave – known as omni-channel retailing.

Today, a number of leading e-tailers have opened physical stores to showcase their products and service online customers. These stores will act as experience centres and will offer value-added services, such as trials, instant returns and product demos. On the other hand, a number of traditional brick-and-mortar players have gone online, either with their own websites or by tying up with already existing e-tailers, such as Amazon, Snapdeal, Jabong or Myntra. The figure is set to increase further in the coming years, as more retailers understand the importance of offering multiple touch points to consumers. Several brands are bringing technology into their physical stores, with kiosks to highlight their products and provide customer support. Some of these stores also allow customers to check the availability of a product across all brand outlets and order home delivery.

Hence, an omni-channel strategy that is connected with consumers through various channels, such as physical stores, websites, mobile apps, social media, kiosks and many more, is striving to enable the consumer to shift between various media seamlessly during a consumer shopping journey. We believe that omni-channel retail is going to drive the growth of modern retail in India going forward.

Growing share of organize trade

Although the share of modern retail penetration in the country is not flattering, there is still a lot to cheer as consumer spending patterns and increasing disposable income levels continue to evolve at a fast pace. There is ample dynamism at present, with a number of international brands entering the market. The existing brands are also working towards reinventing ways to keep up with the pace of growth in the sector. Nevertheless, there is a huge untapped potential for the growth of modern retail in the top six retail markets in India.

Currently, the total retail market size in the top six retail markets of the country amounts to Rs. 4,539 bn and this is projected to reach Rs.7,168 bn by 2019. Out of the total retail spending in the top six retail markets of the country, modern retail amounts to Rs. 871 bn and this is projected to reach Rs.1,718 bn by 2019. The penetration of modern retail will also witness a substantial rise, from the current 19% to 24% in the next three years in the top six retail markets of the country, largely driven driven by the omni-channel way of retailing. MMR and Hyderabad have the lowest penetration of modern retail at 14% and 10%, respectively, despite having a sizeable consumer base.

Don't Miss the Opportunity
World Franchise Congress
24 Nov 2015, Hotel Pullman, Aerocity, New Delhi.
Attend First global conference & master class on franchising.
GROW YOUR BRAND FRANCHISE >> REGISTER NOW!





Related Articles

  • Investments
    Retail in India expected
    Indian Retail sector is expected to surge by 10 per cent to become USD 1 trillion by 2020, says a
  • Eretail
    Online marketplace Shop
    Online marketplace Shop Pirate has decided to revamp its entire website to make online shopping more

Comments

Rating  

Please add your comment:

Not readable? Change text.

Enter the characters as seen on the image (case insensitive)

Notify me of followup comments via e-mail

Subscribe for daily newsletter