The
retail market in the country is expected to be worth over Rs 18,10,000
crore by 2010. And organised retail is likely to exceed Rs 2,30,000
crore (at constant prices), at about 13% of the pie, according to India
Retail Report (2009 edition).RS Roy, editorial director, India Retail
Report 2009 said, “Our research estimates the Indian retail market in
2007 at Rs 13,30,000 crore, growing annually at 10.8%. The share of
organised Retail in 2007 was estimated to be only 5.9%, or Rs 78,300
crore. Modern retail witnessed a growth rate of 42.4% in 2007 and we
envisage it to maintain a faster growth rate over the next three years.
Increase in consumer spending is and will push the economy into a
growth-and-liberalisation mode.”In the overall retail pie, food and
grocery was the dominant category with 59.5% share, valued at Rs
7,92,000 crore, followed by clothing and accessories with a 9.9% share
at Rs 1,31,300 crore. Interestingly, out-of-home food (catering)
services (Rs 71,300 crore) has overtaken jewellery (Rs 69,400 crore) as
the third-largest retail category, with a 5.4% market share. Consumer
durables (Rs 57,500 crore) is the fifth-largest retail category,
followed by health and pharmaceuticals (Rs 48,800 crore), entertainment
(Rs 45,600 crore), furniture, furnishings and kitchenware (Rs 45,500
crore), mobiles and accessories (Rs 27,200 crore), leisure retail (Rs
16,400 crore), footwear (Rs 16,000 crore), health and beauty care
services (Rs 4,600 crore) and watches and eyewear (Rs 4,400 crore), in
the order.In organised retailing, however, clothing and fashion
accessories is the largest category with a market share of 38.1%, at Rs
29,800 crore, followed by food and grocery with 11.5% (Rs 9,000 crore),
footwear 9.9% (Rs 7,750 crore) and consumer durables 9.1% (Rs 7,100
crore). Timewear (48.9%) and Footwear (48.4%) are the most organised of
all retail categories, followed by clothing & fashion accessories
(22.7%).At 25.6% year-on-year, the fastest-growing segment in the
overall pie in 2007 was mobile and accessories followed by out-of-home
food (catering) services (25.1%) and books, music & gifts leisure
category (23.3%). In organised retail, however, the fastest growth was
recorded in the tiny health and beauty care services category at Rs 660
crore, which grew 65%. The second-fastest-growing organised retail
category was entertainment (53.8%), followed by the mobile phones and
accessories (55.2%) and food and grocery retail (55.2%.At constant
prices, growth in the fashion and accessories retail category, both in
the overall market and the organised retail segment, have been
consistently positive since 2004: while the overall market grew 12.8%
in 2007, the organised segment grew 35.5%.In jewellery retail, the
overall market growth was higher in 2007 (9.6%) as compared with the
previous year (9.2%) but growth in organised retail was slightly lower
(31%).The overall market growth in the timewear category has declined
from 10.7% in 2005 to 9.7% in 2006 and further to 8.9% in 2007.
However, growth in organised retail was higher in 2007 (16.6%, as
against 14.8% in 2006). Footwear retail, the overall market as well as
organised segment, grew faster year after year, but growth in 2007 has
been remarkable. The overall market grew 12% in 2007 as against 9.2% in
2006, while the organised segment grew 42.3% and 36.4%, respectively.
Growth in the health and beauty care has been optimistic, though the
organised segment growth of 57.5% in 2007 was slightly lower as
compared with 59.1% in 2006. In the furnishings and furniture retail
category, the overall market grew at 7% in 2007 as against 3.2% in 2006
- thanks to the housing sector boom. The organised segment also grew
faster at 29.7% in 2007 as against 23.1% the previous year. At constant
prices, the overall food and grocery retail market grew slightly higher
at 2.3% in 2007 as compared with 2.2% in the two previous years. The
report suggests that the organised retail segment in this category is
simmering in the true sense - a 50% growth in 2007 as against 42.9% in
2006, and lot more fireworks can be expected going ahead. Valued at Rs
9,000 crore, this organised market constitutes barely 1.1% of the total
food and grocery retail market.
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