As urban population set to almost double in the next 20 years on account of higher employment opportunity (~70% of India’s GDP by 2030) and migration for better living, Shopping via modern retail trend is set to increase significantly. Bulging middle class (expected to go up by 100mn by 2030), working female households as well as rural areas in close proximity to cities should also add to modern retail boom.
Why Do Indians Prefer to Shop in Modern Retail Formats ?
- Convenience of getting most of the brand under single umbrella in case of departmental and hyper markets stores
- Better shopping experience and ambiance relative to mom and pop stores
- Wider choice of products which is missing on the shelf of nearby corner stores
- Rising population of working women and growth of nuclear family led to higher monthly / fortnightly shopping in stead of shopping when need arise
- Discount, freebies and better deals further attract shoppers to hypermarket / departmental stores due to deal seeking nature of Indian consumers
The Growth prospect of organised retail in India is large due to low penetration. However, profitable growth has eluded most of the retailers, so far.