The financial crunch in the global market had negatively impacted the domestic retail market. However, with the gradual developments in the global market, positive signs can be witnessed in the domestic retail market as well.

“The Indian retail sector is reviving at a swift pace due to lucrative marketing strategies such as ‘buy-one-get-one-free’ schemes, discounts and prizes, which are luring consumers,” says Dinesh Rai, proprietor of BCL Global, a small-sized garment manufacturer and supplier in Mumbai.

“Retailers are not only targeting consumers from the metros and large cities in India, but a lot of developments are also coming from the tier II and III cities across the country. In fact, in recent times, smaller towns and cities are giving them immense opportunities to expand their business prospects,,” says Anuj Gupta, manager of Utsav, a mid-sized garment manufacturer and supplier in Gujarat.

Retail sector surging

The organised retail segment accounts for nearly 5% of the retail market in India and is currently pegged at US$9.23 billion. The segment has earned a profit of more than 22% and 30%, respectively, during the third and fourth quarters of 2009-10. It is expected that the organised retail market will grow at 2.3% and earn US$13 billion by the end of the current financial year.

According to the Associated Chambers of Commerce and Industry of India (ASSOCHAM), by the end of 2009-10, the retail market in India is expected to increase by 5.5% and earn revenues worth US$410 billion. Fashion and Lifestyle Franchise Report 2009-10 has also stated that the market is likely to attract investments worth US$30 billion over the next 5 years and will grow at nearly 40%.

Therefore, given the phenomenal rate at which the retail sector is growing in India, it is expected that the sector will touch US$535 billion by 2013.

Sabrina Mitchell