India is standing on the threshold of a retail revolution and witnessing fast changing retail scenario. India is the most preferred new destination for global retailers and it topped the list in a survey, done by property agents CB Richard Ellis, of 323 international retailers about the markets they entered for the first time last year. India ranks 35 with just about one-fourth retailers present in the country and New Delhi was ranked as the fourth most popular city for new retail entrants at city level, according to the CB Richard Ellis study, which covered 75 countries, in terms of international retailers present in a country.
The RNCOS's convenience store market reports present the picture of changing retail industry with the emergence of organised retailing and modern retail formats like convenience stores, supermarkets and hypermarkets.
The Indian retail industry has experienced high growth over the last decade with a noticeable shift towards organised retailing formats. The industry is moving towards a modern concept of retailing. India's retail market is expected to grow at 7 per cent over the next 10 years, reaching a size of US$ 850 billion by 2020. Traditional retail is expected to grow at 5 per cent and reach a size of US$ 650 billion (about 76 per cent), while organised retail is expected to grow at 25 per cent and reach a size of US$ 200 billion by 2020.
India has emerged as the fifth most favourable destination for international retailers, outpacing UAE, Russia, Indonesia and Saudi Arabia, according to A T Kearney's Global Retail Development Index (GRDI) 2012. "India remains a high potential market with accelerated retail growth of 15-20% expected over the next five years," highlighted the report by A T Kearney.
- The foreign direct investment (FDI) inflows in single-brand retail trading during April 2000 to March 2012 stood at US$ 44.45 million, according to the latest data released by Department of Industrial Policy and Promotion (DIPP)
- Cash and carry represents an opportunity worth around Rs 8,250 billion (US$ 148.49 billion) of the Rs 27,500 billion (US$ 494.96 billion) annual retail business in India
- Domestic pharmaceutical retail market clocked a robust 15 per cent growth during 2011, mainly driven by therapies like anti-diabetic, vitamin, anti-infectives and dermatology. The domestic pharmaceutical retail reached a new milestone by recording overall sales of Rs 60,000 crore (US$ 10.80 billion) for the year 2011
- The entire textile and apparel industry in India is expected to grow by 11 per cent to touch Rs 10,320 billion (US$ 185.75 billion) by 2020. Currently, menswear is the major chunk of the market at 43 per cent, according to Technopak Advisors, a retail consultancy
- India's cosmetic sector has, in fact, emerged as one of the markets holding immense growth potential. The Indian cosmetics market registered impressive sales worth Rs 264.1 billion (US$ 4.75 billion) in 2011, and with rising purchasing power and growing fashion consciousness, the industry is estimated to expand at a compound aggregate growth rate (CAGR) of around 17 per cent during 2011-2015, according to RNCOS latest research report titled 'Indian Cosmetic Sector Forecast to 2015'
- Online retail business is another format which has high potential for growth in the near future. India's e-retail industry is likely to touch Rs 7,000 crore (US$ 1.26 billion) by 2015, up from Rs 2,000 crore (US$ 359.97 million) currently, as per an industry body report
- Banks, along with existing e-retail marts are entering into the discount business on the back of flourishing online purchase of gift items, especially jewellery and flowers. The online shopping marts have made gift purchases easy through a number of their retail members. "The estimated Rs 50,000 crore (US$ 8.99 billion) e-commerce business is growing at an overall 40 per cent. Of this, online flower sector has been rising between 70-75 per cent," as per Kunal Gothivarekar, Director (Sales) of ICICI Merchant Service, an online shopping venture
- Tesco Hindustan Service Centre (Tesco HSC) is helping the world's third largest and Britian's leading retailer in going global with its e-commerce roll-out. "The user response has been excellent. It is one of the five most visited retail websites and on average processes 500,000 orders a week across its online businesses," according to Sandeep Dhar, CEO, Tesco HSC
- The gems and jewellery industry has found a way to shine online. Data compiled by eBay India Guide 2011 suggest that a piece of jewellery is being sold every three minutes on eBay India