INDIAN RETAIL

INDUSTRY:

CURRENT STATISTICS
 India Retail Market

720 million Indians to join consuming age by

2010
55% of the Indian population will be under 20
years of age by 2015
32% rise in urbanization by 2008
10% annual growth in Retail market since
2000
7% of the population is engaged in retailing
A booming US$ 300 billion retail market in
India
5.5 retail outlets per 1000 population, highest
in the world
25-30% annual growth in retail loans and
credit cards
Rural – Urban Share
Format-wise urban investments in
retail
expected in next 5 years

FORMAT % SHARE
Hypermarket 38%
Supermarket 28%
Specialty Store 22%
Cash N’ carry 16%

Department Stores 2%

Source: Technopak Analysis

City-wise urban investments in retail expected in next 5
years

% Share

2% AAA
7%
6%
30% AA
A
B+
23% B
C
17%
15% D

Source: Technopak Analysis

FORMAT EXPECTED BY
2011
CASH & SPECIALITY &
FORMAT BY 2011 HYPERMARKET SUPERMARKET CARRY DEPARTMENT TOTAL

New Retail Space

(Min. Sq. Ft.) 218 79 66 93 455

Retail Space/Floor
Staff 400 300 600 400

No. of Front end

Staff 544 264 110 132 1,149

Source: Technopak Analysis

Indian Retail – Buoyed by high GDP
growth

10% 9.0% 9.2%

8.90%
9%

8% 6.4%
6.6% 6.0% 6.8%
7% 6.0%
5.4% 5.6%
6% 5.2%

5%

4%

3%

2%

1%

0%
1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007
Projections of 8% sustainable real GDP growth rate till 2020
promise high growth potential for Indian Retail…
 Driven from Consumption Throughout the 1.1
Billion Population

5-7 million
Super Rich

70 – 80 million
Afford Cars, Private Healthcare &
Foreign travel

250 - 300 million

Afford goods like Refrigerators , Scooters
& Colour TVs

Poverty Line = income less than $ 1/day

600-700 million (Generally Rural)
Afford simple industrial products
e.g. bicycles , radios , textiles

60 % of India’s population are under 24

years
Source: McKinsey
Modern Retail – Organized Channels

100%
20% 20% 3%
36% 30%
80% 40%
55%
60% 85% 81%

40%

20%

0%
US Taiwan Malaysia Thailand Brazil Indonesia Poland China India

Traditional Channel Modern Channel

..but Rapid Transformation is
Anticipated

Current Size & Future Projections for Indian Retail Market

900 800
800
700
600 530
486
US$ Billion

500 445
373 408
400 342
300
200 200
100 87
26 39 59
0 12 18
2007 2008 2009 2010 2011 2012 2017

Total Retail Organized Retail

And may reach a share of 25% by 2017

Recent Trends
…..
 Sources
AT Kearny
www.ficci.com
www.scribd.com
www.indiainbusiness.nic.in
www.indiamicrofinancs.co
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