Retail in India - statistics & facts
India’s retail sector is one of the largest markets globally and is projected to reach about two trillion U.S. dollars in the coming years. With a substantial contribution to the country’s GDP and a share in employment of around eight percent, the retail sector is also domestically of high significance. Moreover, due to the introduction of various new players, the retail industry has become one of the most competitive and quick-paced markets.
Although the number of malls has increased and is expected to rise further, emerging “ghost malls” with a vacancy rate of over 40 percent and low customer rate, reflect the high competition from unorganized retail forms. Local stores still outnumber mid-size retailers in new openings, but their shares in new openings are rising. As the market evolves, retailers must continuously adapt to the changing consumer preferences to stay relevant in India's retail space.
Highly competitive retail space
Small retailers and kirana stores have shaped India’s retail landscape. Located in narrow neighborhoods, on busy streets, and within the walls of gated communities, kirana stores attract customers through easy accessibility. Personal interactions with the shop owners also make them a social meeting spot. In contrast, the organized retail sector with its air-conditioned stores and sprawling shopping malls provides play areas for kids, convenient parking facilities, cinema entertainment, and food court with different cuisines. Therefore, these facilities offer customers an all-around exciting shopping experience.Although the number of malls has increased and is expected to rise further, emerging “ghost malls” with a vacancy rate of over 40 percent and low customer rate, reflect the high competition from unorganized retail forms. Local stores still outnumber mid-size retailers in new openings, but their shares in new openings are rising. As the market evolves, retailers must continuously adapt to the changing consumer preferences to stay relevant in India's retail space.
