Indian Retail Sector; the opportunities are gargantuan and the stakes are really high. The economists and the analysts are robustly betting on strong retail sector performances to help and empower India, one of the Worlds fastest and Asia’s third-largest economy to become one of the world’s most prominent and best retail destinations in 2020. Indian consumerism has transformed dramatically to adapt to western-style consumer spending patterns and this change is one of the prime factors driving Indian economy to higher levels. The steadily increasing income of an average Indian, the robust developments in infrastructure across all the regions of the country, the bold and continual economic reform measures and liberal foreign direct investment(FDI) policies, prominent international brands eyeing India as one of top investment destinations and the internet revolution’s influencing power on Indian population’s consuming trends, all together is certainly a pivotal driving engine to make India as one of the strongest economy and most attractive international destinations for FDI.
Top Indian corporates like Reliance, Bharti Enterprises, Dabur, Aditya Birla Group and the Raheja’s have strategically positioned themselves by opening modern retail formats across the country so as to lever their customer base. Amidst, 51% FDI in multi-brand retail policy effect has embarked the foreign giants like Wal-Mart, Carrefour, IKEA, Tesco and Metro AG to have their big bites. The estimated value of the Indian retail sector is about USD 500 billion presently and it is believed that India’s retail sector will become a USD 1.3 trillion opportunity by 2020. Modern retailers and Fast moving consumer goods (FMCG) majors, the spinning wheels of Indian retail, will not only have to capitalise on huge consumer base by increasing their store presence across major cities but will also have to look beyond the conventional brick- and-mortar stores, and consider other avenues like digital and mobile sales notably websites and mobile applications, which at present are miniscule.
It is estimated that in 2020 there will be close to 200 cities with population of over 0.5 million that will fuel retail growth in India. With the advent of multi-channel retailing, time has come for a more robust and symbiotic relationships between retailers and FMCG companies, as this opportunity is the one which will accelerate the retail industry much faster than expected to make India a globally renowned destination for retailing. This paper offers a framework of the present retail scenario in India based on which the future growth prospects and developmental issues are analysed as the challenges are immense and equally are the rewards.
Foreign Direct Investment (FDI), Multi-brand retail, Economic Reforms, Modern Retail, Multi-Channel Retailing, FMCG
