Prospectus of Retailing in India

 Market size

According to Kearney Research, India's retail industry is expected to grow by 9% from 2019-2030, from $779 billion in 2019 to $1,407 billion by 2026 and over $1.8 trillion by 2030. Indian Offline Sales of retailers, also known as bricks and mortar (B&M) is expected to increase by Rs. 10,000-12,000 crore ($1.39-2.77 billion) in FY20. The Indian direct selling industry is expected to be valued at $2.14 billion by the end of 2021. E-Retail has benefited during the pandemic and according to a Bain & Company report in conjunction with Flipkart, "How India Shops Online 2021", the retail market is expected to grow to USD 120-140 billion by FY26, a growth of 25-30% Bye. during the next 5 years.

India has the third highest number of e-retail customers (behind only China and the US). New logistics players are expected to deliver 2.5 billion Direct-to-Consumer (D2C) shipments by 2030.

Growth of the retail sector

India's retail market is estimated to reach $2 trillion by 2032, driven by socio-demographic and economic factors such as urbanization, rising incomes, and an increase in the number of nuclear families. On the other hand, the Indian e-commerce industry is expected to cross the USD 350 billion mark by 2030, growing at a CAGR of 23%.

Problems of Retailing in India

Lack of technology adoption. Availability, feasibility and adoption of technology is a major challenge faced by Indian retail stores.

Lack of infrastructure and logistics.

Lack of skilled labor.

Retail fraud.

Inefficient supply chain management.

Price war.

Cultural diversity.

Complexity in the tax structure

Future Prospects of Retailing in India

The retail market in India has always been huge. A November 2019 IBEF report predicts that by 2021, traditional retail will hold a major share of 75 percent, organized retail will reach 18 percent, and e-commerce will account for 7 percent of the total retail market.

Impact of Covid-19 on Indian Retail.

The COVID-19 pandemic hit India at a time when its economy was already suffering from subdued growth due to stagnant domestic demand. The immediate impact of the epidemic included a sudden increase in demand for essential goods and services, an intensification of health care and a financial crisis, a reduction in job opportunities, and a sharp decline in demand for non-essential goods and services.

The Indian government's decision to lock down 1.3 billion people has pushed the country's domestic economy into a dark and worrisome zone, severely impacting SMEs and unorganized retailers. Global financial institutions have changed India's economic growth outlook and lowered the country's GDP growth target following the coronavirus outbreak.

Netscribes took a closer look at the impact of the coronavirus on the Indian retail industry to reveal the current scenario and what to expect in the coming months.