Retail

The Indian retail market is literally on the go. The share of retail trade in the country's gross domestic product was between 8–10 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per cent by 2010.

The Indian retail market, which is the fifth largest retail destination globally, was ranked 2nd after Vietnam as the most attractive emerging market destination for investment in the retail sector, by AT Kearney's seventh annual Global Retail Development Index (GRDI), in 2008.

According to a study by ASSOCHAM, Indian retail will touch US$ 365 billion in 2008, against US$ 300 billion in 2007. With a year-on-year growth of 30–35 per cent, the sector is likely to touch US$ 440 billion by 2010. By 2015, the retail sector is projected to overtake the US$ 650 billion mark, and organised retail will cross the US$ 130 billion mark. The study also estimated that the organised retail segment would see an investment of US$ 25 billion–28 billion in 2008, which would touch US$ 70 billion by 2010. The organised segment will account for 25 per cent of the total sales by 2011.

Commercial real estate services company CB Richard Ellis' findings state that India's retail market, is currently valued at US$ 511 billion, and is poised to grow to US$ 833 billion by 2013. The report further stated that organised retail that currently accounts for less than 5 per cent of the total retail market is expected to register a compound annual growth rate (CAGR) of 40 per cent and swell to US$ 107 billion by 2013.

A report by global consultancy AT Kearney said "The consumer spending in India has increased by an impressive 75 per cent in the last four years and will quadruple in the next 20 years."

Continuing the robust growth of the organised retail in India, according to the Credit Rating and Information Services of India, the industry raked in US$ 25.44 billion turnover in 2007–08, as against US$ 16.99 billion in 2006–07— a whopping growth rate of 49.73 per cent.

India has one of the largest number of retail outlets in the world. Of the 12 million retail outlets present in the country, nearly five million sell food and related products. Thought the market has been dominated by unorganised players, the entry of domestic and international organised players is set to change the scenario.

Mall space, from a meagre one million square feet in 2002, is expected to touch an estimated 60 million square feet by end 2008, says Jones Lang LaSalle's third annual Retailer Sentiment Survey-Asia. A report by Images Retail estimates the number of operational malls to grow more than two-fold, to cross 412, with 205 million square feet by 2010, and a further 715 malls to be added by 2015, with major retail developments even in tier-II and tier-III cities in India.

Even as the organised retail market is starting to take off, there is an associated surge in branded discount outlets in India. Top realtors and local retail chains are developing malls in regional boroughs, specifically to sell premium branded goods.

Rural retail

Led by the rising purchasing power, changing consumption patterns, increased access to information and communication technology and improving infrastructure, rural retail market is estimated to cross US$ 45.32 billion mark by 2010 and US$ 60.43 billion by 2015, according to a study by Confederation of Indian Industry (CII) and YES Bank.

The rural retail market in 2008 has grown at 25 per cent compared to the 7–10 per cent growth rate of the urban consumer retail market. With 87 per cent of rural markets not having access to any sort of organised marketing and distribution, this segment has tremendous potential for growth.

After ITC's ' Chaupal Sagar' (India's first rural mall), the DCM Shriram Group's Hariyali Bazaar', and Tata Chemicals' Tata Kisan Sansar, retail giants like Reliance, Spencer's and Subhiksha are also expanding in semi-urban and rural areas.