i. No single format can dominate as there are huge cultural differences regionally. ii. The most encouraging format would be hypermarkets now. iii. The hypermarket format would further encourage hypermarkets, particularly with the entry of MNCs. iv. India’s economy has undergone a substantial transformation since independence in 1947 v.
Agriculture now accounts for only one-fifth of the gross domestic product (GDP), down from 59 percent in 1950, and a wide range of modern industries and support services now exist. vi. Starting in 1992, India began to implement trade liberalization measures – The economy has grown the GDP growth rate ranged between 6 and 8 percent annually over the period 1992-2010 and considerable progress has been made in loosening government regulations, particularly restrictions on private businesses.
vii. Currently, India is one of the fastest growing economies in the world and by 2030; India would be one of the Top 5 economies in terms of GDP. viii. The India retail market is estimated at US$ 470 Bn in 2011, accounting for -35% of GDP and is expected to grow to US$ 675 Bn by 2016, @ CAGR of 7.5%. ix. The organized retail market is estimated at US$ 26 Bn and accounts for ~6% of the overall retail market for 2011.
The organized retail market is projected to grow to US$ 84 Bn by 2016, @CAGR of 26%. x. With an estimated market of US$ 325 Bn, the Food & Grocery segment is the single largest retail category and accounts for -70% of the total retail market in 2011. The organized retail segment for Food & Grocery is estimated at ~US$ 9 Bn and accounts for 35% of all organized retail xi. The retail market in India offers significant opportunities for retailers & brands across categories. This is driven by factors such as a large consumer base, rising incomes & job opportunities, increasing consumer awareness, etc.
The organized retail market in India is estimated at US$ 26 Bn in 2011 and is projected to grow to US$ 84 Bn by 2016, CAGR of 26% for the period 2011-16. Overall size of retail market in India in 2011 = 24, 44,000 crore Size of retail’s share of India’s GDP in 2011 = 35% Overall expected size of retail market by 2016 (CAGR 7.5%) = 35, 10,000 Crore Estimated size of organised retail market in 2011= 1, 35,200 Crore Organised retail market’s share of the total retail market in 2011= 6% Expected size of organised retail market by 2016 (CAGR 26%) = 4, 36,800 Crore