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 population
India 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 urbanization
Historically 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.
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Indian Retailing Scenario PPT 3