Retail Landscape in India

 In terms of retail, India is the world's fifthlargest destination. India is placed 16th in the FDI Confidenc
e Index (after US, Canada, Germany, United Kingdom, China, Japan, France, Australia, Switzerland, a
nd Italy).
 The retail scene in India is evolving due to a young population, a growing middle class, and major infra
structural investments in one of the world's fastest expanding economies.
 Here are some fascinating facts and trends shaping India's retail future.
 According to the India Retail Forum, key macroeconomic variables continue to support India's "high-
potential" retail market.
 Due to the introduction of various new businesses, the Indian retail industry has become one of the mos
t dynamic and fast-paced industries.
 It generates more over ten percent of the country's GDP and employs about eight percent of the workfo
rce. In terms of retail, India is the world's fifth-largest destination.

 RETAIL LANDSCAPE

 India's retail sector is expected to increase at a rate of 12% year over year, topping $1.1 trillion USD by
next year, because to its young population, increasing urbanisation, and rising affluence.
 India's retail business currently accounts for 10% of the country's GDP and 8% of its jobs (1.09 million
people).

 Impact of Economic landscape of the nation on Retails industry

 Due to the introduction of various new businesses, the Indian retail industry has become one of the mos
t dynamic and fast-paced industries.
 It generates more over 10% of the country’s GDP and employs about 8% of the workforce.
 In terms of retail, India is the world's fifth-largest destination.
 The Indian retail business is one of the world's fastest expanding.
 According to Kearney Research, India’s retail business will develop at a slower rate of 9% from 2019
to 2030.
 India is the world's fifth-largest and most popular retail destination.
 In terms of retail store availability per capita, the country ranks among the best in the world.
 The retail sector in India is exploding, with development taking place not only in big cities and metros,
but also in tier II and III cities.
 In 2020,the Indian online grocery sector is expected to surpass sales of around Rs. 22,500 crore,
representing a considerable increase of 76% over the previous year.
 On the strength of a large young population, India will become a favourable market for fashion
merchants.
 India will become a favourable market for fashion retailers on the back of a large young adult
consumer base, increasing disposable income and relaxed FDI norms.

 Drivers of Retails Landscape in India

 Healthy economic growth, changing demographic profiles, rising disposable income, urbanisation, and
shifting customer tastes and preferences are some of the drivers propelling India's organised retail
market forward.
 Retailers must provide compelling value propositions and be responsive to market dynamics to flourish
in the retail sector.
 The ongoing rise of ecommerce has changed the retail industry's dynamics in such a way that merchant
s have been obliged to reallocate significant resources to multi-channel strategies.
 The reader will gain a fundamental understanding of the elements that influence the retail business by r
eading this essay, which focuses on retail industry drivers and dynamics.
 Recognize the retail industry's business drivers and dynamics.
 The retail trade is well-known as a very competitive field of business, but for entrepreneurs with
sufficient finance, business ability, and appealing merchandise, it can be financially and personally
gratifying. The retail industry, like all businesses, is subject to a variety of business drivers that
determine its trajectory.
 Given below are the key drivers of the retail industry:
 Customer-centred selling.
 Income that can be spent.
 Opt for simplicity over complexity.
 Affordability.
 Demographics/ Location of store.
 Segmentation.
 Market to target.
 Turnover & Margin.
 Trust & Image of the store.
 Merchandise Management is number ten on the list.
 Multichannel Retailing.
 Shifting Consumer Behaviour.
 Inhibitors of retails in India
 Middle-class consumer growth: Ad campaigns.
 The number of working women is increasing: ADVERTISMENTS.
 Excellent value for money.
 Rural market on the rise.

 Indian Retail Sector (Top 6 Key Segments)

 Fashion, Fitness and Personal Care: This sector is divided into beauty parlours (both men and
women), health centres, spa, gym, and yoga centres:
Indians have been spending enough money on fashion, fitness, and personal care products as their earni
ngs have increased. India has over a million stores, with personal care accounting for half of them. Sma
ll singlelocation merchants dominate sales of fitness and personal care items, just as they do in other ret
ailing sectors.
 Health and Pharmaceuticals:
The Indian pharmaceutical market grew 17.7% annually in August 2021, up from 13.7% in July 2020.
 According to India Ratings & Research, revenue in the Indian pharmaceutical market is predicted to in
crease by more than 12% year on year in FY22.
 In FY21, India's medicine and pharmaceutical exports totaled US$ 24.44 billion.
 Entertainment Retailing:
 The Indian retail industry is one of the fastest-
growing in the world, and India is the world's fifth most popular retail destination.
 India's retail market is estimated to reach $1,200 billion by 2021, according to the Indian Brand Equity
Foundation (IBEF).
 The ground is prepared, with several significant firms preparing to launch retailtainment locations that
will disrupt the market.
 Food and Grocery: In 2021, there will be approximately 12.8 million retail grocery stores in India.
 Within the category, there were both classic and modern retailers.
 While there has been constant growth in numbers since 2013, traditional stores have accounted for the
majority of the increase.
 Consumer Electronics:
By 2020, the Indian consumer electronics market is anticipated to be worth $1.15 trillion.
 In 2014, India overtook China as the world's second-
largest smartphone market, with the potential to overtake it by 2021.
 India also has the fastest-growing tablet market in the world.

 Competitive landscape of retail

 Ack of Technology Adoption is a term used to describe a lack of technology adoption.
 The availability, feasibility, and adoption of technology is the most significant barrier that Indian retail
outlets face.
 Infrastructure and Logistics, Skilled Workforce Scarcity.
 Frauds in the Retail Industry.
 Supply Chain Management that is inefficient.
 There's a price war going on.
  Cultural Diversity is a term that can be used to describe a wide range of things
 Complexity of the Tax System

 Key distribution channels retails in India.

 The three types of distribution channels are wholesalers, retailers, and direct-to-consumer sales.
 A distribution channel is a series of firms or intermediaries through which a good or service is
purchased by the final buyer.
 Wholesalers, retailers, distributors, and the Internet are all examples of distribution channels.
 The maker sells directly to the consumer in a direct distribution channel. Multiple intermediaries are
involved in indirect routes before the product reaches the consumer.
 While a distribution channel may appear to be endless at times, there are three primary categories, each
of which includes a producer, wholesaler, retailer, and end customer.
 Because it comprises all four: producer, wholesaler, retailer and consumer the first channel is the
longest.
 This extended distribution chain is exemplified by the wine and adult beverage sector.
 A vineyard cannot sell directly to a store in this industry due to prohibition-era rules.
 It works on a three-
tier structure, which means the vineyard must sell its product first to a wholesaler, who then sells it to a
retailer.
 The product is then sold to the end user by the retailer.
 The second channel bypasses the wholesaler by selling directly to a retailer, who then sells the goods to
the end user.
 This suggests there is only one intermediate in the second channel.
 Dell, for example, is large enough to sell its products to respected stores like Best Buy directly.
 A direct to consumer model is the third and final channel, in which the manufactures sells its product
directly to the end consumer.
 A direct model is demonstrated by Amazon, which sells kindles to its consumers through its own
platform.
 This is the shortest possible distribution path, obviating the need for both a wholesaler and a retailer.

 FUTURE AND TRENDS IN INDIA RETAIL

 The Indian ecommerce market is anticipated to grow by 84 percent to $11 billion by 2024. This shift
will be fuelled by mobile shopping, which is expected to expand at a rate of 21% per year over the next
three years.
 The food and beverage industry, as well as the jewellery industry, offer the most prospects for
multinational companies.
 The fashion industry occupies a significant portion of the entire organised retail segment in the United
States.
 As a result, retailing has been solely responsible for propelling the economy.
 In India, the retail industry is booming.
 A strong skill pool, limitless prospects, vast markets, and the availability of high-quality raw materials
 India is poised to overtake the world's best retailer due to lower costs of material
 According to industry insiders, economies will be in a better place by 2042.
 The retail industry will become more customer-centric in the future.
 All of this bodes well for India's retail expansion.
 Consumer behaviour trends to watch.
 Impulsive shopping: Today's consumers are impulsive shoppers who want to buy products right away.

Source & References-

https://timesofindia.indiatimes.com/business/india-business/indias-retail-landscape-a-nearly-900-billion-market-
dominated-by-mom-and-pop-stores/articleshow/81628781.cms
https://www.ibef.org/industry/retail-india.aspx
https://www.indianretailer.com/article/whats-hot/trends/the-changing-indian-retail-landscape-in-the-new-
normal.a6709/
http://www.fruitnet.com/asiafruit/article/179297/indias-retail-landscape-is-evolving