India - a hot destination now, advises A T Kearney report to global retailers

11 Jul '05

2 min read

It's now 'Destination India' for global retailers who earlier gave a 'go by' to the country catching the first plane to China, says A T Kearney in its latest report.

The report titled The Global Retail Development Index 2005, warns global retailers to make a kill at the India markets before its prime retail space gets exhausted.

Clearly acknowledging the changing lifestyles of the middle class populace, the report says this category has higher disposable income as more and more young couples go to work.

One will be surprised to find larriwalas or cart pullers laden with farm fresh fruits and vegetables hawking in front of mega stores like Pantaloons or Piramyd Retail that display branded jeans and latest fashion accessories.

It recognizes India as the third largest growing economy in Asia, and says its population will overtake that of China's by 2050, achieving the distinction of the most populated country on earth.

The GDP rise is forecast at 4 percent each year for the coming decade, showing trend of a healthy growth of the middle to higher income group that may go for pricey products.

Stating China's retail market has shown 9 percent annually, the report projects India's retail sector at US $330 billion to grow by 10 percent each year.

Besides food, apparel sector has been deemed promising sector on the retail front. Citing Cygnus Economic and Business Research report, the study says Indian retail apparel sector will grow by 4 to 5 percent in volume and 13 percent in value terms, annually.

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