INDIAN RETAIL INDUSTRY: CURRENT STATISTICS
India Retail Market 720 million Indians to join consuming age by 2010 55% of the Indian population will be under 20 years of age by 2015 32% rise in urbanization by 2008 10% annual growth in Retail market since 2000 7% of the population is engaged in retailing A booming US$ 300 billion retail market in India 5.5 retail outlets per 1000 population, highest in the world 25-30% annual growth in retail loans and credit cards
Rural – Urban Share
Format-wise urban investments in retail expected in next 5 years
FORMAT
% SHARE
Hypermarket
38%
Supermarket
28%
Specialty Store
22%
Cash N’ carry
16%
Department Stores 2% Source: Technopak Analysis
City-wise urban investments in retail expected in next 5 years % Share
6%
7%
AAA
2% 30%
AA A B+
23%
B 15%
Source: Technopak Analysis
17%
C D
FORMAT EXPECTED BY 2011 FORMAT BY 2011
HYPERMARKET
SUPERMARKET
CASH & CARRY
SPECIALITY & DEPARTMENT
New Retail Space (Min. Sq. Ft.)
218
79
66
93
Retail Space/Floor Staff
400
300
600
400
No. of Front end Staff
544
264
110
132
Source: Technopak Analysis
TOTAL
455
1,149
Indian Retail – Buoyed by high GDP growth 9.0%
10%
9.2%
9% 6.4%
8%
6.6%
7% 6%
5.4%
5.2%
5.6%
6.0% 6.0%
8.90%
6.8%
5% 4% 3% 2%
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
0%
1997
1%
Projections of 8% sustainable real GDP growth rate till 2020 promise high growth potential for Indian Retail…
Driven from Consumption Throughout the 1.1 Billion Population 5-7 million Super Rich 70 – 80 million Afford Cars, Private Healthcare & Foreign travel 250 - 300 million Afford goods like Refrigerators , Scooters & Colour TVs
Poverty Line = income less than $ 1/day
600-700 million (Generally Rural) Afford simple industrial products e.g. bicycles , radios , textiles
60 % of India’s population are under 24 years Source: McKinsey
Modern Retail – Organized Channels 100% 80%
40%
36%
30%
20%
20%
3%
China
India
55% 60%
85%
81%
US
Taiwan
40% 20% 0% Malaysia Thailand Traditional Channel
Brazil
Indonesia Poland
Modern Channel
..
but Rapid Transformation is Anticipated Current Size & Future Projections for Indian Retail Market
US$ Billion
900 800 700 600 500 400 300 200 100 0
800
373
342
445
408
530
486
200 12 2007
18 2008
26 2009 Total Retail
39 2010
87
59 2011
2012
Organized Retail
And may reach a share of 25% by 2017
2017
Recent Trends …..
Sources AT Kearny www.ficci.com www.pdfcoke.com www.indiainbusiness.nic.in www.indiamicrofinancs.co m