The Indian Kaleidoscope Emerging Trends in Retail
The Indian Kaleidoscope
Emerging trends in retail
September 2012
Foreword
India’s retail market is expected to cross 1.3 trillion USD by 2020 from the current market size of 500 billion USD. Modern retail with a penetration of only 5% is expected to grow about six times from the current 27 billion USD to 220 billion USD, across all categories and segments. The recently unveiled Vision 2023 by Chief Minister Selvi J Jayalalithaa will ensure that Tamil Nadu reaches the numero uno position in the next 11 years in all parameters enshrined in the Human Development Index (HDI) to make the state an ideal destination for foreign and domestic investments. The CM’s emphasis on agriculture including cold storage and associated logistics, as well as terminal market complexes promises to collectively result in a booming retail market. This report aims to identify key issues and recommend possible solutions to directly and positively impact the growth of this sector. Based on the recommendations, FICCI is expected to interact with stakeholders including government bodies, and relevant institutions. We are privileged to have PwC as our knowledge partner. I thank them for their contribution and extend my hearty wishes to all those involved for their outstanding effort and immaculate execution. P Murari IAS (R) Advisor to President, FICCI, New Delhi
4
PwC
Contents
08 Setting up shop 14 33 44 45
The extravaganza The high price Conclusion Retail success stories from Tamil Nadu
The Indian Kaleidoscope: Emerging trends in Retail
5
Executive summary
Though, the monsoon in India may be deficient but it is raining deals and discounts for the Indian consumers. To attract customers, retailers are sending personalised messages via sms or emails. The Indian retail landscape is evolving from from the brick-and-mortar model to adopt technology for connecting with consumers. The aim is to achieve a complete seamless customer experience. It’s a new world for both
Emerging trends in retail
September 2012
Foreword
India’s retail market is expected to cross 1.3 trillion USD by 2020 from the current market size of 500 billion USD. Modern retail with a penetration of only 5% is expected to grow about six times from the current 27 billion USD to 220 billion USD, across all categories and segments. The recently unveiled Vision 2023 by Chief Minister Selvi J Jayalalithaa will ensure that Tamil Nadu reaches the numero uno position in the next 11 years in all parameters enshrined in the Human Development Index (HDI) to make the state an ideal destination for foreign and domestic investments. The CM’s emphasis on agriculture including cold storage and associated logistics, as well as terminal market complexes promises to collectively result in a booming retail market. This report aims to identify key issues and recommend possible solutions to directly and positively impact the growth of this sector. Based on the recommendations, FICCI is expected to interact with stakeholders including government bodies, and relevant institutions. We are privileged to have PwC as our knowledge partner. I thank them for their contribution and extend my hearty wishes to all those involved for their outstanding effort and immaculate execution. P Murari IAS (R) Advisor to President, FICCI, New Delhi
4
PwC
Contents
08 Setting up shop 14 33 44 45
The extravaganza The high price Conclusion Retail success stories from Tamil Nadu
The Indian Kaleidoscope: Emerging trends in Retail
5
Executive summary
Though, the monsoon in India may be deficient but it is raining deals and discounts for the Indian consumers. To attract customers, retailers are sending personalised messages via sms or emails. The Indian retail landscape is evolving from from the brick-and-mortar model to adopt technology for connecting with consumers. The aim is to achieve a complete seamless customer experience. It’s a new world for both