Indian Retail Data
Ø India tops the annual list of most attractive countries for international retail expansion, according to AT Kearney's Global Retail Development Index 2006
Ø The $270-billion Indian retail market is growing at the rate of 13 per cent – and the organised segment grew nearly 48 per cent in 2006 at prevailing prices
Ø Projected growth rate for the organised segment is about 40 per cent for year 2007 – and with major global players and Indian corporate houses entering the fray, this growth is likely to touch 45 per cent per annum over the next three years
Ø
Ø At 2003-04 constant prices, the size of the organised retail market is expected to be in excess of Rs 200,000 crore ($45 billion) by year 2010, which will make its contribution to total retail sales about 15 per cent. Currently, only 4.6 per cent of the market is organised
Ø For organised players, the gaps of unused opportunities are glaring. The table below illustrates this point:
Ø Food and grocery retail is by far the single largest block, estimated to be worth Rs 743,900 crore ($168 billion) – at the moment, more than 99 per cent of this segment is claimed by kirana stores
Ø The significance of rural retailing as a formidable segment cannot be lost on any player looking for organic growth. The urban-rural split in consumer spending is 9:11. Of the estimated $270-billion Indian retail market, almost half lies in rural India
Ø According to recent studies conducted by National Council of Applied Economic Research (NCAER), rural India is home to 720 million consumers spread across 627,000 villages
Ø Of course, India will have to arrive at its unique formats of retailing in order to tap the market optimally, but successful global models and time-tested practices can be studied to assimilate and adapt indigenously•
Ø Reliance is hiring overseas talent to build up its management capabilities -- it has appointed Peter Bracher from Asda Wal-Mart as special adviser for Reliance Fresh stores, and Kevin Pleass from Tesco, UK, to coordinate store design and construction
Ø
Ø Greater availability of quality retail space with increase in organised retail
Ø An estimated 100 million square feet of quality shopping centre space by 2007-08; to generate retail sales of over Rs 50,000 crore ($11 billion)
Ø Concurrent with the growth in organised retail, the present two square feet-per-capita retailing space will rise 15-20 per cent by 2010
Ø By 2010 about 300 million square feet of additional retail space likely to be generated
Ø Mall development has been steady – currently, there are about 200 operational malls (including some on the verge of completion), and this number is expected to rise to almost 600 by the year 2010. Of the new malls coming up, 40 per cent are concentrated in the smaller cities
Ø According to an ICICI study, malls are estimated to become a Rs 38,447-crore ($8.3 billion) sector by 2010
Ø Space for 15,000+ new outlets, 100 hypermarkets, 500 department stores and 2,000 supermarkets
Ø Organised retailing in small-town India is growing at 50-60 per cent a year, compared to 35-40 per cent in the large cities
Ø The $270-billion Indian retail market is growing at the rate of 13 per cent – and the organised segment grew nearly 48 per cent in 2006 at prevailing prices
Ø Projected growth rate for the organised segment is about 40 per cent for year 2007 – and with major global players and Indian corporate houses entering the fray, this growth is likely to touch 45 per cent per annum over the next three years
Ø
Ø At 2003-04 constant prices, the size of the organised retail market is expected to be in excess of Rs 200,000 crore ($45 billion) by year 2010, which will make its contribution to total retail sales about 15 per cent. Currently, only 4.6 per cent of the market is organised
Ø For organised players, the gaps of unused opportunities are glaring. The table below illustrates this point:
Ø Food and grocery retail is by far the single largest block, estimated to be worth Rs 743,900 crore ($168 billion) – at the moment, more than 99 per cent of this segment is claimed by kirana stores
Ø The significance of rural retailing as a formidable segment cannot be lost on any player looking for organic growth. The urban-rural split in consumer spending is 9:11. Of the estimated $270-billion Indian retail market, almost half lies in rural India
Ø According to recent studies conducted by National Council of Applied Economic Research (NCAER), rural India is home to 720 million consumers spread across 627,000 villages
Ø Of course, India will have to arrive at its unique formats of retailing in order to tap the market optimally, but successful global models and time-tested practices can be studied to assimilate and adapt indigenously•
Ø Reliance is hiring overseas talent to build up its management capabilities -- it has appointed Peter Bracher from Asda Wal-Mart as special adviser for Reliance Fresh stores, and Kevin Pleass from Tesco, UK, to coordinate store design and construction
Ø
Ø Greater availability of quality retail space with increase in organised retail
Ø An estimated 100 million square feet of quality shopping centre space by 2007-08; to generate retail sales of over Rs 50,000 crore ($11 billion)
Ø Concurrent with the growth in organised retail, the present two square feet-per-capita retailing space will rise 15-20 per cent by 2010
Ø By 2010 about 300 million square feet of additional retail space likely to be generated
Ø Mall development has been steady – currently, there are about 200 operational malls (including some on the verge of completion), and this number is expected to rise to almost 600 by the year 2010. Of the new malls coming up, 40 per cent are concentrated in the smaller cities
Ø According to an ICICI study, malls are estimated to become a Rs 38,447-crore ($8.3 billion) sector by 2010
Ø Space for 15,000+ new outlets, 100 hypermarkets, 500 department stores and 2,000 supermarkets
Ø Organised retailing in small-town India is growing at 50-60 per cent a year, compared to 35-40 per cent in the large cities
Comments