Indian retail - an overview
According to a report by the Indian Brand Equity Foundation (IBEF), the Indian retail industry has emerged to be one of the most dynamic and fast-paced industries due to the entry of several new players. Retail accounts for over 10 % of the country’s GPD and is the world’s fifth-largest global destination in the retail space, according to the report.
Further, a report by Deloitte and the Retailers Association of India called, ‘Unravelling the Indian consumer’ that was quoted in the mainstream media recently, states that India is one of the fastest-growing major economies globally. The Indian retail market is expected to grow from USD795 billion in 2017 to USD1.2 trillion by 2021.’
With the Union Government relaxing norms for single-brand retailers having foreign investment and also relaxing certain provisions for complying with local sourcing requirements, the retail sector received additional boost.
The Deloitte report adds that with the ever-increasing internet penetration in the country and a boost in operations of international retailers, the share of the organized retail market is expected to increase from 12% in 2017 to 22-25 percent by 2021.
Traditional retail is also in the midst of a major makeover, imbibing the competitive strengths of modern retail, with 18 million outlets across the country, according to a Tecknopak report.
So what are the specific factors that play an important role in the Indian retail space? Here’s look.
Indian shopper and the evolving lifestyle
India is home to a fifth of the world’s youth. And what’s more, India has the world’s largest millennial population. Also, the percentage of urban Indian shoppers who are well-travelled, well -exposed and are brand and quality conscious is gradually growing. These are the shoppers who are looking for value- adds not only in the product, but also in the shopping experience, whether offline or online.
As shopper research studies suggest, millennials place more emphasis on brand values and image and prefer personalized product and service categories. There is also a growing appetite for international brands among the digitally connected Indian shoppers due to rising income levels and increased awareness.
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