Home / Knowledge / News / Apparel/Garments / India's retail sector could grow to $1tr by 2020: PwC
India's retail sector could grow to $1tr by 2020: PwC
23
Dec '14
The retail industry in India is one of the fastest-growing in the world and could see a compounded annual growth rate (CAGR) of 10 per cent over 2012-2020, growing from US$ 500 million to $1 trillion in that time frame, says a recent report released by PricewaterhouseCoopers International Limited (PwC).
 
In its report titled ‘Future of India – The Winning Leap’, PwC says India’s emerging-middle and middle class population, with household earnings between Rs 150,000 and 850,000 per annum, is currently around 640 million, and is poised to reach 900 million in 2021. This will lead the growth of retail sector in the country.
 
However, 92 per cent of India’s total retail market remains unorganised, dominated by local shops owned by independent private individuals, says the report. In such a scenario, promoting growth of organised retail will strengthen India’s consumption ecosystem—which includes producers, unorganised retailers, consumers, and the Government.
 
Growth in organised retail will create more jobs for people with lower skill levels, according to the report. Currently, the retail sector in India employs up to 40 million people, and if the sector is strengthened, it could produce 10 million additional jobs in the next ten years.
 
“We envision India boosting the share of organised retail from 8 per cent of total retail in 2012 to 30 per cent in 2024 and 50 per cent in 2034,” say authors of the report.
 
“The goal is to support the creation of a retail value chain that improves operational efficiency and that works with the unorganised sector to improve consumers’ overall retail experience—for instance, by offering more choices, more reliable supply of popular products, and lower costs. The end result would be an increase in overall consumption, among other advantages,” they add.
 
The report suggests that organised and unorganised retail players can partner to improve the overall retail ecosystem while also generating new benefits for their own customers. For instance, the unorganised sector could help extend organised retail’s reach to that “last mile,” where independent store owners understand the local market. 
 
This model combines the prowess of organised retailing with the proficiency of neighbourhood stores, creating more value for consumers than either sector could provide on its own.
 
The report also suggests greater use of technology by retailers to reach customers. By leveraging digital retail channels (e-commerce), retailers could spend less on real estate while also reaching more customers in tier-2 and tier-3 cities. Some leading e-commerce players in India, such as Jabong and Myntra, derive nearly 50 per cent of their revenues from tier-2 cities.
 
Further, new technologies such as virtual walls and virtual mirrors will further help improve the retail customer experience, thereby encouraging greater consumption.
 
The authors’ project that digital retail could account for 50 per cent of the organised retail market in 2034, resulting in significant reductions in capital expenditure for retail space. (RKS)
 

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search