- According to recent report titled ‘Unravelling the Indian Consumer’ by Deloitte and the Retailers Association of India (RAI), the share of organised retail market in India would increase from about 12% in 2017 to about 22-25% by 2021. Organised Retail refers to the set-up of any retail chain supported by a well-defined supply Chain. These are trading activities undertaken by licensed retailers. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses.
- The growth will also be driven by the growth of e-commerce market from $24 billion in 2017 to $84 billion in 2021. E-commerce refers to the buying and selling of goods or services electronically on the internet.
- The factors that will drive growth in retail market in India are a) fast growing economy, b) robust demographics, c) increased internet penetration, d) increased use of smartphones.
- The retail market in India is the third largest in Asia. It is fourth largest in the world after U.S., China and Japan.
