Modern retail in India – whose penetration is set to increase substantially from the current 19% to 24% in the next three years – is passing through an exciting phase. The sector is expected to reach Rs. 1,71,800 crore from the current Rs. 87,100 crore across the top six retail markets of the country, and has been attracting keen interest from overseas players and investors.
Industry intelligence suggests that more than 50 mid-rung global retailers are planning to enter India within the next six months, with an eye on tapping mostly smaller, under-served markets within the country. Of the incoming brands, 18 are in food and beverage space alone. By 2020, food & grocery segment is expected to account for 66 per cent of the total revenues in the retail sector.
This growing enthusiasm of players is based on the market potential. In a recent development, India has replaced China to become the most promising retail market in the world. Government efforts to boost cashless payments and further simplify the nationwide goods and services tax are also expected to accelerate the adoption of modern retail.
Our recently concluded annual mega retail intelligence congregation this year – India Retail Forum – perfectly captured all the action taking place in our retail universe. Over 100 top global and Indian retailers participated in the conclave where they exchanged views on present-day challenges, opportunities ahead, and the strategies for unleashing the sector’s true potential. Turn the pages to read what these leaders said about India’s dynamic retail landscape.