India is the largest among all industries accounting to 10 per cent of the country’s GDP and employs around 8 per cent of the workforce. Undoubtedly it is one of the fastest growing retail industries in the world that is estimated to reach USD 1.1 trillion by 2020, with modern trade expected to grow at 20 per cent per annum. (As per a report by ASSOCHAM and MRRSIndia.com)
In today’s retail market in India, we see that:
- India is set to gain from the latest government policies. In order to improve the ease of doing business in India, the present set of reforms introduced by the government under FDI is attracting many foreign investors and growth opportunities for single retail brands. As per a recent report by ASSOCHAM , India's luxury market is set to grow to USD 30 billion from USD 23.8 billion by the year-end, on back of growing exposure to international brands amongst Indian youth and higher purchasing power of the upper class in both tier II and III cities.
Also, with GST taking its shape, it has helped the retailers simplify their tax structure leading to better supply chain structure& cash flows, pricing, and profitability.
- IT enabled trends differ for growth market retailers. Growth Market retailers are leapfrogging a complete decade of technology cycle. They are starting the journey with common centralized data architecture that suits well for data mining, omni-channel experience and easier social media integration. Digital in-out is inherent for this framework that allows for e-coupons, e-receipts or seamless integrations with 3rd party systems leaving APIs.
- Mobile e-Commerce has sufficient potential. As per a recent report by Forrester, Mobile commerce represents nearly 50 per cent of online retail sales in India, compared with around 48 per cent in China and 34 per cent in the US. Forrester expects mobile sales in India will overtake PC-based sales in 2016 and reach $51 billion by 2020.
E2M-commerce will also play an important role in the rural sector. With high penetration of smart phones, inexpensive internet connectivity, credit/debit cards, and online banking services, e-commerce giants are spending heavily on mobile apps with the aim of getting consumers on to their platforms bundled with hyperlocal. Hyperlocal is the next wave in the mobile commerce revolution. It essentially consists of firms that optimize the technology and are able to connect the local/preferred retailers with the consumers in a particular area, providing the consumers with the unprecedented convenience of delivery in minutes, instead of days.
Leading global and Indian brands are embracing these trends and are focused on creating new market demands.
About Author :
Richa Singhal is a marketing enthusiast who enjoys creating brand driven engagements in a competitive market with use of the dynamic media options available.