In one of the recent reports published by the global business consulting firm BCG, in association with CII it said that Indian retail market is poised to grow from $630 billion in 2015 to $1,200 billion by 2020 on the back of rising income levels and increased urbanisation.
Over the past decade, Retail is the most talked about topic when it comes to country’s growing economy. The sector with its exponentially increasing preferences and with the Silicon Valley’s drift towards the Indian market, retailing in the country now accounts for 14 to 15 percent of its GDP.
Here are 6 reasons that will make the retail industry splurge in 2016 and will led to become the wealthiest industry of the country within 4-5 years:
1. Internet and smartphone penetration across smaller towns and cities of the country has worked as a catalyst which has brought the entire retail industry to consumer’s finger tip.
2. Benefits of a large, young population adding to the workforce, 70 percent increase in income levels, nuclearization of families and increasing urbanization will also boost retail growth in the coming years.
3. Advent of e & m Commerce models in retail has taken the industry to a whole new echelon. Transformation in traditional retail models with an infusion of digital commerce it in has resulted in a multifold growth of the industry.
4. Not to forget, technology! One of most lucrative weapons that the industry has identified in order to create a safe and ethical retail supply chains across the nation. Though the industry is still in the midst of a tech revolution, but technology integration has opened the doors for a worldwide competition.
5. FDI (Foreign Direct Investment) in Retail cannot be ignored when we talk about the retail revolution. Entrance of brands like H&M, GAP, Zara, Adidas etc. has brought Indian retail sector at par with international retail setup. Today western consumers prefer such brands and even these brands have seen whooping responses within a few months of their launch in the country.
6. Mindset transformation of retailers has been one of the major fuels in the growth of retail in India. Ditching traditional retail models, many big boys of retail have infused modern methodology to lure customers. With a thinking of serving customers wherever they are present (online/offline) has drastically empowered the retail industry and will help the industry reach heights in the coming years.
Though there are and will be a lot of hurdles along the way but with all these above mentioned assets, Indian Retail Industry will surely cement itself as one of the global leaders in the coming years.
Even the report from BCG-CII said, “In this context, retail companies would need to examine how they can use digital to disrupt the way they do business. Companies would need to build capabilities in omni-channel retailing, big data & analytics, agile IT and supply chain."