India is currently ranked twentieth among
the top thirty developing countriesin its Global Retail Development index. TheIndian Retail Industry is one of the most fast growing industries in the
country.
Because of India’s demographyit remains
an appealing, long-term retail destination. More that half of India’s
population is below the age ofthirty fiveandabouta third lives in the city. The
disposable income of Indians is increasing which allows them to spend more and
try new products and brands. Increasing urbanisation, rise of nuclear families
and growing preference for branded products will increase retail consumption in
India.
With growth in the retail industry, the
demand for real estate is also increasing. The introduction of the internet as
an online medium for retail is gaining more acceptance. As a result a tremendous
growth opportunity for retail companies can be seen.
Due to changing demographics, the retail
industry is on a growth curve. The growing middle class in India is not only
buying luxury goods but is also redefining the market. The luxury goods that
are purchased in India come from non-metros which constitutes about 40 per cent.
This in itself is a healthy sign for countries investing in this sector.
Many
retailers have launched their business online with the trend of e-commerce.
These online retailers are also using the medium of mobile apps to increase
their reach to more customers. The need for consumer goods in different sectors
including consumer electronics and home appliances is rising so many companies
have invested in the Indian retail space in the past few months.
The
Union Minister of Commerce and Industry has stressed on building a culture of
branding and marketing its products to the rest of the world. The ministry is
also willing to take steps to start a Free Trade Agreement with the European
Union.
The
Government of India has taken various initiatives to improve the retail
industry in India. Such initiatives include the Goods and Services Bill which
is seen as a key to starting industrial growth in the country.
Higher
incomes, younger shoppers andthe increased use of credit cards are some factors
which are expected to affect Retail Trends. E-commerce and online delivery are also
becoming popular trends in retail industry.
The
School of Retail & Fashion Merchandise FDDI was established to fulfilthedemand
of trained professionals and provide manpower at various levels of the growing
retail sector.
