MUMBAI, Aug 24: The Indian retail market, will grow a Compounded Annual Growth Rate (CAGR) of 6 percent to reach USD 865 billion by 2023.
The size of e-tailing is estimated to grow from the current USD one billion at 0.2 percent of the retail market to USD 56 billion (in real terms) at 6.5 percent of the total market by 2023, driven by an ecosystem favouring the e-tailing market.
The share of corporatized brick & mortar retail in total merchandise retail will at best grow from the current 7 percent to 17 percent by 2023.
These were the key takeaways from Technopak’s ‘Vision 2020 Emerging Consumer Trends & Retailer Responses’ presented at ET Edge International Retail Leaders Summit on ‘Retail in Momentum, Being Change Ready’ held here recently.
The indian retail market currently estimated at USD 490 billion.
In a seminar, Ankur Bisen, Vice President, Technopak, said, ‘Despite the persistent economic pressures and slowdown in India’s economy, merchandise retail will continue to witness sustained growth.’
An increasing share of incremental merchandise retail will come from urban and semi-urban centers, which in turn, is an outcome of rapid urbanization experienced in India.
Apart from these urban centers, demand will also come from the emerging towns and clusters where primary source of livelihood has moves from agriculture to other professions. The retail chain will continue to face structural issues encompassing real estate, labour, sourcing and supply chain that will not allow corporatized brick & mortar retail to grow beyond the stated estimate.
The strategic discussions amongst leaders and visionaries presented India and global industry barons & visionaries on a single platform to put across their concerns to the policy makers, discover new opportunities, create and expand into untapped markets and understand the existing lacunae and loop-holes that impact profits and market share, thus enriching the industry at large.
(UNI)
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