Key
takeaways include:
- With the growth momentum in the Indian economy expected to continue, albeit at a slower pace, retailing in India will be driven by rise in per capita income levels and corresponding increase in PFCE. CARE Research believes the overall retailing in India will expand at a CAGR of 11% over the next 4 years.
- With the increase in discretionary spending, the share of food & grocery segment in the total retailing pie is expected to decline, while clothing, mobile & communication is expected to increase. Other retailing segments related to discretionary spending such as jewellery & watches and personal care are also expected to garner a greater share of the consumer’s wallet by FY17.
- With a steady revival being witnessed by the organised retailers since the economic recession particularly with respect to spend on discretionary goods, CARE Research expects the organised retail to grow at higher rates compared to total retail. Correspondingly, the penetration level too is expected to increase from 8.1% in FY13 to 11.2% in FY17.With approximately 60-70% of the total mall space centred in Tier-I cities, the growth of organised retail has largely remained concentrated in the developed cities.
- With aspiration level in small town growing modern retail is gradually entering in Tier II and Tier III cities. CARE Research expects the organised retailers to expand their store presence in the smaller towns & cities, albeit cautiously.
- Also, modern retailers are exploring new formats keeping in view the consumers convenience, tastes and preferences to enhance their revenues and profitability. In this regard, few new retail formats have emerged such as rural retailing, luxury retailing, airport retailing and E-retailing.
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