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" India's Retail Revolution... "

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India's Retail Revolution Rises and Roars...!!

The Indian Government's Recent Decision to allow Foreign Direct Investment (FDI) in Organized Retail subject to strict policy conditions will commence a long term structural change process in India's markets.

As per multiple estimates from different sources, the total size of India's Retail Market is worth Indian Rupees 8 Lac Crores or US 3 Trillion Dollars.

Also, the size of the Organized Retail Sector in this is only about 3 - 5 % at present.

This is projected to grow upto 10% over the next few years once the large expected capital inflows start coming.

It is however projected to grow very fast over the next few years making India along with China one of the fastest growing retail markets in the world.

Advertisements of Branded FMCG (Fast Moving Consumer Goods) Products on Private Television Channels are also playing an important role in creating aspirations amongst not only the middle class population of India which is larger than Europe's population but also amongst the consumers at lower income levels.

India's population grows at the size of Australia annually and adds a Workforce of 3 Million Graduates every year.

Also, as per a KPMG report, the IT (Information Technology) Services and ITES (Information Technology Enabled Services) Export Boom in India puts in as much as 10 - 12 Billion US Dollars of spending power annually in the pockets of young consumers in India.

Who are willing to spend !

It is these young consumers many of whom are earning starting salaries more than that of the retirement level salaries of their parents who are driving the footfalls in malls, cinema multiplexes all across the country.

These youthful consumers live, breathe a modern contemporary livestyle and increasingly aspire for quality international brands right here.

India is now beginning to see multiple-income families in larger numbers.

ESOP's (Employee Stock Options) of many successful IT Companies like Infosys, WIPRO and TCS have transformed many middle class Indians to Dollar Millionaires while living in India and igniting their purchasing power.

As India's IT Juggernaut (a term used in the editorial of Newsweek Issues 2006 - The Knowledge Revolution ), rolls along, it is projected to be a large share of both IT's exports (30%) and India's GDP (7%) by 2010.

It's spending is reflecting in the Retail Malls, Mutiplex Complexes that are sprawling all over the country.

However, we have a long long way to go before we see the Indian Retail Sector claim it's rightful position on Acer Founder Stan Shih's Smiling Curve.

E-Commerce and E-Tail Companies will play a major role in the same.

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Last Updated on 1st January 2013.
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