Retail is one of the biggest sectors in India, generating around 8% of the country’s total employment and accounts for more than 10% of India’s GDP. After witnessing a dull period due to the global economic recession, experts believe t the retail sector in the country is set to witness a major revival in the coming months.

It has been observed that India’s retail industry is fast-paced and dynamic in nature. Currently a number of big and small players are entering the market, with the recent buzz being that a number of big German players are interested to set up their manufacturing units in the country. Witnessing scope for retail business growth in India, more such global retail giants are expected to enter the retail markets. The SMEs in this sector are being encouraged to adopt advanced technological tools for the production of goods in order to compete with bigger companies in terms of quality and compliance.

Currently, the country is undergoing a revolution in shopping. This is evident in the consumer buying behaviour that has changed drastically, especially during the festive seasons. There has also been an increase in the number of malls, busy shopping centres and huge complexes that offer entertainment, shopping and food under one single roof.

Young shoppers reveal increased purchasing power

Avid shoppers mostly belong to the age group of 20-35 years.  The young working population is gradually exhibiting purchasing power. As a result, the retail industry is currently dependant on this segment for growth. Retailers are aggressively targeting the middle income group and the high income group when selling their products. Women are found to be great shoppers and with the growth in the number of young women professionals in the country, the retail sector is likely to prosper in the coming days.

“The young population is very comfortable about the concept of shopping mall and this has led to a significant growth in the number of shopping malls in recent times,” says S. Sirajudeen, Proprietor of Foot Graphy, a small-sized company manufacturing leather footwear in Tamil Nadu. The malls are emerging with food courts and multiplexes, thereby considerably attracting young shoppers. In less than a decade, the country has witnessed a substantial rise in the shopping malls and the trend is here to stay.

Supporting the retail boom

It can be said that young shoppers can change the face of the country’s retail industry. Food and grocery within the retail sector is also flourishing with the gradually emerging modern food marts.

“Retail companies are expanding their base and establishing new manufacturing units. This will pave the way for greater employment opportunities that will positively impact the overall economy of the country,” says Piyush Paul Gupta, Proprietor of Abhimanyu Exim, a mid-sized manufacturer of ladies garments in Jaipur, Rajasthan.

With India reviving from the recessionary period, job opportunities are opening up along with better scope for earning. This in turn is encouraging the young working population to shop even more, thereby resulting in a phenomenal growth in the country’s retail industry.

Jacqueline Gomes