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In June 2007, AT Kearney, a well-known
management consulting firm, named India as the most
attractive retail destination in their 2007 Global Retail
Development Index report.
This was the third time in a row that India was named as the
most attractive retail market in the world by AT Kearney.
The organized retail sector in India has shown strong growth
over the past few years. A healthy 7%-8% economic growth,
increasing disposable incomes among the middle class,
changing consumer tastes and preferences, and a young
population with a propensity to spend, were some of the key
factors driving growth in the organized retail market in
India. |
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The successful entry and expansion of domestic players in
the sector like Pantaloon Retail (India) Limited (part of the Future Group)
and Reliance Retail Limited (Reliance Retail) has proved that the organized
retail sector in India has high growth potential.
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A report by KPMG, India and the Federation of
Indian Chambers of Commerce and Industry (FICCI), released in
mid-2006, estimated the retail market in India to be around US$ 200
billion, of which organized retail accounted for US$ 6.4 billion.
Organized retail was expected to increase to US$ 23 billion by 2010.
However, as organized retail is a sunrise sector, it needs huge
investments for the sector to become viable and sustain its growth
momentum. Many analysts and industry experts have pushed for opening
up of the sector to foreign investment so as to meet the heavy
capital requirements of the sector. In addition to capital, it is
the expertise and experience which the foreign players bring with
them that would be beneficial to the sector. |
India Remains The Most Favored Retail Destination Contd... >>
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