Apparel Industry report
Retail Industry
1 Retail Sector in India-An Overview
In emerging markets around the world there has been a close linkage between economic Development, rise in per capita income, growing consumerism, proliferation of branded products and retail modernization.
With high economic growth, per capita income increases .This, in turn, leads to a shift in consumption pattern from necessity items to discretionary consumption. Furthermore, as the economy liberalizes and globalizes, various international brands enter the domestic market. Consumer awareness increases and the proliferation of brands leads to increase in retail space. Thus, retailing is a part of the development process.
The retail sector in India accounts for 22 per cent of the country's gross domestic product (GDP) and contributes about 8 per cent to the total employment. India continues to be among the most attractive investment propositions for global retailers. India has emerged as the fifth most favorable destination for international retailers, outpacing the UAE, Russia, Indonesia and Saudi Arabia, according to A T Kearney's Global Retail Development Index (GRDI) 2012. The report also highlighted that "India remains a high potential market with accelerated retail growth of 15-20 per cent expected over the next five years.”
SIZE OF MARKET:
• India's retail sector is worth US$ 350 billion and is growing at a compound annual growth rate (CAGR) of 15 per cent to 20 per cent at present, as per a PricewaterhouseCoopers (PwC) research report titled, '(Winning in India's retail sector: Factors for Success)'.
• Mass grocery and apparel are the two most favored segments for foreign direct investment (FDI) in multi-brand retail in India, according to a study titled 'Indian Retail Market-Opening More Doors' by Deloitte Touché Tohmatsu India.
• The FDI inflows in single-brand retail trading during April 2000 to December 2012 stood at US$ 42.70 million, as per the data released by Department of
1 Retail Sector in India-An Overview
In emerging markets around the world there has been a close linkage between economic Development, rise in per capita income, growing consumerism, proliferation of branded products and retail modernization.
With high economic growth, per capita income increases .This, in turn, leads to a shift in consumption pattern from necessity items to discretionary consumption. Furthermore, as the economy liberalizes and globalizes, various international brands enter the domestic market. Consumer awareness increases and the proliferation of brands leads to increase in retail space. Thus, retailing is a part of the development process.
The retail sector in India accounts for 22 per cent of the country's gross domestic product (GDP) and contributes about 8 per cent to the total employment. India continues to be among the most attractive investment propositions for global retailers. India has emerged as the fifth most favorable destination for international retailers, outpacing the UAE, Russia, Indonesia and Saudi Arabia, according to A T Kearney's Global Retail Development Index (GRDI) 2012. The report also highlighted that "India remains a high potential market with accelerated retail growth of 15-20 per cent expected over the next five years.”
SIZE OF MARKET:
• India's retail sector is worth US$ 350 billion and is growing at a compound annual growth rate (CAGR) of 15 per cent to 20 per cent at present, as per a PricewaterhouseCoopers (PwC) research report titled, '(Winning in India's retail sector: Factors for Success)'.
• Mass grocery and apparel are the two most favored segments for foreign direct investment (FDI) in multi-brand retail in India, according to a study titled 'Indian Retail Market-Opening More Doors' by Deloitte Touché Tohmatsu India.
• The FDI inflows in single-brand retail trading during April 2000 to December 2012 stood at US$ 42.70 million, as per the data released by Department of