Retail

Retail Market Size in India

The retail industry in India ranks 4th in the world in terms of size and accounts for 10% of the overall GDP of the country. The industry’s market size in 2020 was approximately INR 65.50 trillion and is expected to reach INR 96.43 trillion by 2024. The retail industry is estimated to grow at a CAGR of 10.15%.

The Indian retail industry has emerged as one of the fastest growing industries mainly because of the entrants of new players recently. The emergence of Kirana stores (Provision stores) can be considered as the archetype of retailing in the country. Once the Indian government liberalized the economy in the 1990’s many companies vertically integrated their operations to serve a larger customer base. After 2005, large domestic corporations opened multiple stores, especially in the food & general merchandise category and this led to the growth of the retail industry in India. During the same period of time, many international players entered the Indian retail market which further accelerated the industry’s demand. India being one of the fastest growing economies in the world administers a strong platform for manufacturers, distributors and customers. Retailers are continuously trying to unlock the true potential of the industry by incorporating latest technologies such as Artificial Intelligence based data analytics, CRM tools etc.

The Retail Industry in India is segmented as;

• Organized Retail

• Unorganized Retail

Competitive Landscape

India’s retail industry is highly competitive as it is majorly dominated by unorganized retailers. There are approximately 13 million Kirana (grocery, stationary, etc, stores) stores and neighborhood stores that sell food & groceries. Organized retail segment consists of supermarkets or convenience stores, Hypermarkets, Departmental stores, Cash & carry stores, and Specialty stores.