Penetration rate of the organized retail market India 2018, by category

In 2018, the penetration rate of the organized jewelry and watches retail market across India was 29 percent, closely followed by both footwear and consumer electronics retail. Grocery and food retailers bring up the rear with just four percent.

 Organized, traditional and online retail

The majority of India’s retail trade takes place in unorganized, traditional, so-called kirana stores. Spread across small corners, busiest streets, or within the borders of gated communities, kirana stores are advantageous for being easily accessible. In contrast modern, organized retail spaces such as malls offer their audience a full-fledged shopping experience but are tougher to reach out to. While e-commerce is still largely underrepresented in India’s retail landscape, online retail grew significantly in recent years, expanding the scope of organized retailers.

 COVID-19 impact on organized retail

  The nationwide lockdown in India announced at the end of March 2020, forced most retailers to shut their doors. While malls and kirana stores were equally affected, organized retailers were more likely to adapt to new retail methods such as online retail. Accordingly, customer’s choices and preferences changed. Almost one-fourth of customers said they had shopped online more often, but as newer research shows, the inclination to shop at physical retail stores remained. Therefore, a return to local kirana stores is likely.