IMPRESSIONS from a Cross-section

Topic

What is the size of the retail mall industry in India? By what rate is the sector projected to grow in the next 5 years? How does it compare with other countries?

The pandemic has reinstated need for organised retail spaces in Tier II and III markets
The pandemic has hit the Indian economy hard, the retail industry notwithstanding. Retail experts discuss how the industry's growth plans stand thwarted and how retailers are engaging in different mediums to provide the best of product and services to the consumers.


a. As per the Indian retail industry report, the Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. India is the world's fifth-largest global destination in the retail space.

b. The retail industry reached $950 billion in 2018 at a CAGR of 13 per cent and is expected to reach $1.1 trillion by 2020. Revenue of India's offline retailers, also known as brick and mortar (B&M) retailers, is expected to increase by Rs 10,000-12,000 crore ($1.39-2.77 billion) in FY20; though this projection will change now due to Covid.

Retail is predicted to add more than 39 million square ft of space by 2022. Total consumption expenditure in retail is expected to reach nearly $3,600 billion by the end of 2020 from recorded $1,824 billion in 2017. It accounts for over 10 per cent of the country's gross domestic product (GDP) and around 8 per cent of the employment. India is the world's fifth-largest global destination in the retail space. It is projected that by 2021, organised retail share will reach 18 per cent and e-commerce retail share will reach 7 per cent of the total retail market. The pandemic has reinstated the need for organised retail spaces in Tier II and III markets as well, which might have a major impact on the traditional retail segment present there in majority.

The retail mall industry in India has been the hotspot in new lifestyle and with the big-ticket mall culture the size of the industry has grown many folds. India stands as the fifth-largest global destination in the retail space.

The retail sector was projected to grow from $672 billion in 2017 to $1.3 trillion in 2020. According to Boston Consulting Group in collaboration with Retailers Association of India, retail is expected to cross the trillion-dollar mark on the back of multiple structural, demographic and economic drivers to boost consumption. But as the pandemic has hit the economy hard, it's too early to share an estimated rate of growth in the next 5 years but this is certain that the market is expanding and retailers are going through different mediums to provide the best of product and services to the consumers. We hope that the market in the coming future holds a major share in countries economic growth, with a positive outlook, supported rising income, favourable demographics and entry of foreign players in the market will grow bigger and better.

This article was first published in the November 2020 edition of the print magazine.

Published on: 06/11/2020

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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