RETAIL SECTOR

NAME:- CHINMAY VIVEK POL

DIV :- C
ROLLNO:- 8
SUBJECT :- INDUSTRY ANALYSIS AND DESK RESEARCH
CONTENTS

 INTRODUCTION
 MARKET SIZE
 INDUSTRY SCENARIO
 TECHNOLOGY IN RETAIL
 CONCLUSION
INTRODUCTION

 Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of
several new players. Total consumption expenditure is expected to reach nearly US$ 3,600 billion by 2020
from US$ 1,824 billion in 2017. It accounts for over 10% of the country’s gross domestic product (GDP) and
around eight% of the employment. India is the world’s fifth-largest global destination in the retail space.

 India ranked 73 in the United Nations Conference on Trade and Development's Business-to-Consumer (B2C)
E-commerce Index 2019. India is the world’s fifth-largest global destination in the retail space and ranked 63
in World Bank’s Doing Business 2020.

 India is the world’s fifth largest global destination in the retail space. In FDI Confidence Index, India ranked
16 (after US, Canada, Germany, United Kingdom, China, Japan, France, Australia, Switzerland, and Italy).
 MARKET SIZE

 As per Forrester Research, in 2020, India's retail sector was estimated at US$ 883 billion, with grocery retail accounting
for US$ 608 billion. The market is projected to reach ~US$ 1.3 trillion by 2024.

 Revenue of India’s offline retailers, also known as brick and mortar (B&M) retailers, is expected to increase by Rs.
10,000-12,000 crore (US$ 1.39-2.77 billion) in FY20. India’s direct selling industry would be valued at US$ 2.14
billion by the end of 2021.

 According to the Retailers Association of India (RAI), the retail industry achieved 93% of pre-COVID sales in February
2021; consumer durables and quick service restaurants (QSR) increased by 15% and 18% respectively.

 After an unprecedented decline of 19% in the January-March 2020 quarter, the FMCG industry displayed signs of
recovery in the July-September 2020 quarter with a y-o-y growth of 1.6%. The growth witnessed in the fast-moving
consumer goods (FMCG) sector was also a reflection of positivity recorded in the overall macroeconomic scenario
amid opening of the economy and easing of lockdown restrictions.
 Industry Scenario

 India’s retail market is estimated to reach ~1.5 tn by 2030, from $0.79 tn in 2018, driven by socio-
demographic and economic factors such as urbanisation, income growth and rise in nuclear
families. On the other hand, the Indian e-commerce industry is expected to cross $200 bn mark by
2026, growing at a CAGR of 30%, and have a market penetration of 12% compared to 2%
currently.

 In 2020, e-commerce accounted for nearly a third of several electronic categories, almost half of
smartphones sold, and about a fifth of all apparel sales in India. In 2020, e-commerce and consumer
internet companies raised more than $8 bn in PE/VC capital across 400 deals (excluding
investments in Jio). India's e-commerce market is growing at YoY rate of 5% with estimated
revenue of $56.6 billion in FY 2021.
 TECHNOLOGY IN RETAIL

 Rising consumer confidence, increasing income, cons umption-based behavior and a large pool of consumers
opens
 up a plethora of opportunities for the retailers to tap. The fact that we have the youngest population in the world,
 companies are poised for ascending on the growth scale. Retailers need to tap technology to stay in this
competitive
 environment. Technology helps retailers achieve top-line growth and bottom-line profits by enabling loss
 prevention, minimizing retail shrinkage, increasing operational efficiency and facilitating best practices in retaIL
 excellence through everyday solutions to business challenges. As per retail industry analysis done by TYCO,
80.3%
 of retailers believe that technology enhancement holds the key to challenges in the business. It helps retailers
 improve profitability through innovation in technology and proper store management solutions.
 CONCLUSION

 The Indian retail sector has matured over the years but is still highly unorganized. The country‟s estimated
 annual retail opportunity of USD 500 billion is a great opportunity for both domestic and international retailers.
 Additionally, despite the regulated environment, as per the recently released World Investment Report for 2014,
 India is the third most desirable destination for FDI. The report further states that FDI inflows to India stood at
 USD 32 billion in 2011, registering a growth of 33 percent over 2010. It is expected that FDI inflows will move
up by 25 percent by the end of 2015. The country needs more investment in the retail and allied sectors such
ascold chains, warehousing and logistics. Market observers insist there is a retail renaissance underway and it
is
 digital, as technology is linking consumers, devices and data for a smarter shopping experience. Technology
 represents an outstanding competitive advantage for those retailers who are open to innovation and willing to
 take on a new perspective of today‟s unpredictable, complex retail industry. As supply chain becomes more and
 more complex and consumers becoming smarter, tech-savvy, gadget-literate, and surf through different channels,