The Indian retail industry is one of the fastest growing markets in the world due to rapid economic growth. Retail industry in India was approximately valued at USD 500 billion in 2013-14 and is expected to grow to USD 950 billion by 2018, registering a compound annual growth rate (CAGR) of 8.9 per cent during 2000-18.
The retail sector in India is witnessing a significant change as traditional markets make way for next level formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros and Tier-2 cities, introducing the Indian consumer to a shopping experience like never before. India had around 500 operational malls (as on May 2013) with a total area of 200 million sq ft compared to just 50 malls in 2005.
India's top 10 food retailers account for about 40% of the organised retail sector's revenue. The private label share in India is only 7% of modern retail as compared to 40% in European countries. Margins achieved by private label is 30-40% higher than branded products.
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
The Indian luxury market is becoming increasingly interesting even from a global perspective. While still in an early stage and, compared to other emerging markets, relatively small, its potential and year-on-year growth are almost unparalleled. Entry of leading international labels across categories, increase in geographic footprint together with sustained consumer demand has contributed to this growth.