- Indianization of western culture
- Novelty of the shopping mall ‘concept’
- Malls being a focus point for social interaction
- Status associated with shopping
The sheer size of India’s population and the number of major towns and cities contained in the country, provide enough consumers to guarantee growth well beyond the forecast period. On the other hand, the rising disposable incomes and increasing urbanisation provide ample opportunity for strong growth rates. However, a big challenge for the retailers is to have similar access to the rural poor as to the urban rich.
The future outlook of the Indian retail market appears to be bright, with Euromonitor expecting the Indian Retail market to grow in value terms by a total of 39.6 per cent between 2006 and 2011, averaging growth of almost 7 per cent a year.
BMI (Business Monitor International) is anticipating the strongest growth in India’s hypermarket sector, with sales set to grow by an explosive 1025% to reach US$1.35bn in 2011. Supermarket sales will increase by 119.1%, discount stores by 242.9% and convenience stores by 134.1%.
Key focus areas for the future development of the Indian Retail industry are:
- Lack of proper consumer insights
- Development of adequate supply chain
- Develop the Human Infrastructure