Indian retailing scenario
According to the report ‘Strong and Steady 2011’ released by global consultancy and research firm PricewaterhouseCoopers (PwC), India's retail sector, which is currently estimated at about US$ 500 billion, is expected to grow to about US$ 900 billion by 2014.
India has also been ranked as the FOURTH most attractive nation for retail investment among 30 emerging markets by the US-based global management consulting firm, A T Kearney in its 9th annual Global Retail Development Index (GRDI) 2011.
RETAIL ACCOUNTS FOR 22 % GDP
8% EMPLOYMENT
The organized and unorganized
sector co exist.
The share of unorganized sector
is more than 90%
According to the Indian council for research
and international relations ( ICRIER) India is
the 7th largest retail market in the world.
India has the largest number of retail outlets
in the world at over 13 million and the
average size of a store is 50-100 square feet.
Second highest is in china which are
5000in number
It also has the highest number of
outlets per million inhabitants.
The per capita retail space in
India is among the lowest in the
world, though the per capita
retail store is the highest.
Majority of these stores are
located in rural areas.
Strong underlying economic
growth,
Higher income Levels
High consumer spending
Dual Income
changing lifestyle
aVERAGE AGE 25 YEARS IS THE
LOWEST AS COMPARED TO
OTHER COUNTRIES.
IT WILL BE 28 YEARS IN 2020
AND 53% WOULD BE UNDER THE
AGE OF 30 BY 2020
Increase in working populationIndia is the second-largest country in the world in
terms of population, and is the largest consumer
markets in the world owing to its favorable AVERAGE
AGE.
Further, the increase in the number of working
women has fuelled the growth in sales .
There has been a 20% increase in the number of
working women in the last decade with an average
salary of rs9492
Spurt in urbanizationHistorically cities and towns have been the driving
force of overall economic and social development.
Currently over 350 million people of India reside in
cities and towns, which translates to around 25% of
the total population.
The rapid growth in urbanisation has facilitated
organised retailing in India, and has caused the
speedy migration of population into major tier I and
tier II cities,
which have a significant share in the retail sales of
the
country
The urban population’s contribution in
India’s GDP shot up from 29% in 1951 to
60% in 2001 and is expected to increase to
70% by 2018, as migration to cities and
towns grows rapidly in anticipation of
higher income opportunities provided by
these epicenters.
Stiff competition from unorganized sector.
Organized retail sector has to pay huge taxes, which is negligible for small retail business.
In retail sector, Automatic approval is not allowed for foreign investment.
There is a shortage of quality real estate and infrastructure requirements in our country.
Opposition to Foreign Direct Investment from small traders affects retail industry.
Shortage of retail space in central and downtown locations also hinders the growth of retail industry. Presence of strong Pro-tenancy laws makes it difficult to evict tenants and this is posing problems.
Lack of trained work force.