The Retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new and online players. India is the world’s fifth-largest global destination in the retail space.
India’s retail market is expected to grow at a Compound Annual Growth Rate (CAGR) of 10 percent to US$ 1.6 trillion by 2026 from US$ 641 billion in 2016. While the overall retail market is expected to grow at 12 percent per annum, the modern trade would expand twice as fast at 20 percent per annum and traditional trade at 10 percent.
India’s Business to Business (B2B) e-commerce market is expected to reach US$ 700 billion by 2020.Online retail is expected to be at par with the physical stores in the next five years.
India’s total potential of Business to Consumer (B2C) is estimated to be US$ 26 billion, of which $3 billion can be achieved in the next three years from 16 product categories, according to a study by Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Institute of Foreign Trade (IIFT).
India has replaced China as the most promising markets for retail expansion, supported by expanding the economy, coupled with booming consumption rates, urbanizing population, and a growing middle class. India is expected to become the world’s fastest growing e-commerce market, driven by robust investment in the sector and rapid increase in the number of internet users. Various agencies have high expectations about the growth of Indian e-commerce markets. Indian e-commerce sales are expected to reach US$ 120 billion! by 2020 from US$ 30 billion in FY2016.