The organized retail sector has emerged as one of the large drivers of consumption growth in India. Organized retail comprises of all the large scale retail formats like supermarkets, hypermarkets, convenience stores, department stores and specialty stores. Organized retail offers customers ease of shopping and higher purchasing power with the availability of large scale retail chains providing competitive prices and various payment methods. The key advantages of organized retail includes availability of large assortments under one roof, competitive prices, standardized quality, appropriate storage facilities, supply chain management expertise and customer convenience through centralized billing and payment options. Growing internet and smartphone penetration in India is fueling the growth of e-commerce and online shopping portals offering vast product categories across major cities in India.
The Global Organized Retail Market Size Is Estimated To Be Valued At US$ 28.34 Bn In 2024 And Is Expected To Exhibit A CAGR Of 4.2% Over The Forecast Period 2024-2031.
Key Takeaways
Key players operating in the organized retail are Amazon, Apple, eBay, Flipkart, Future Group, Landmark Group, Pantaloons Retail, Reliance Retail, Shoppers Stop, Tata Group, Puma. Key players are investing heavily in expanding their offline retail footprint as well as strengthening their online capabilities. E-commerce giants like Flipkart and Amazon are extending their presence beyond metro cities and setting up fulfillment centers in tier 2 and 3 cities to tap the growing demand from smaller towns.
The booming e-commerce sector and rising disposable incomes have led to significant growth in demand for retail products across India. Changing consumer behavior and preference for shopping from large format stores have encouraged major retailers to set up large formats stores pan India. Rapid urbanization, increasing internet and smartphone penetration enabled wider product selection and improved visibility among consumers.
Technology adoption in retail sector have revolutionized consumer shopping experience. Emergence of AI, VR, AR, analytics and cloud computing is enhancing consumer engagement and personalizing shopping experience. Omnichannel integration strategies allow seamless shopping experience across online and offline channels. Blockchain technology enable traceability, transparency and builds trust in supply chain.
Market Trends
Growing dominance of private labels - Major retailers are investing heavily in developing strong private labels to differentiate their offerings and gain better margins. Private labels account for nearly 30% sales for grocery retailers.
Rise of omni-channel retailing - Retailers are integrating online and offline channels to provide unified shopping experience to consumers. Personalization and convenient fulfillment options are driving omni-channel growth.
Market Opportunities
Tier 2 3 cities expansion - Rising disposable incomes and internet penetration is fueling retail boom beyond metros. Nearly 60% retail growth is expected from tier 2 3 cities by 2025.
E-grocery segment - Online grocery shopping is at a nascent stage in India currently accounting for only 1% of the grocery retail. With rising health consciousness and driver shortage, e-grocery offers huge growth potential.
Impact Of COVID-19 On Organized Retail Market Growth:
The COVID-19 pandemic severely impacted the organized retail market growth. During the initial lockdown phases, all retail stores were shut which led to zero revenues. Even after restrictions were gradually lifted, customers were reluctant to visit stores due to fear of virus spread. This led to steep decline in store footfalls and sales. Retailers faced huge inventory pile-ups and working capital crunch. Many small retailers faced risk of permanent closure. However, retailers also leveraged various strategies to stay connected with customers and drive sales. They focused on boosting their online channels, introducing new delivery models like contactless delivery. Many retailers partnered with food delivery and grocery apps to serve customers. They also launched new value offers, schemes and loyalty programs to pull back customers. Now with vaccination drives, pandemic situation is improving. Store visits have increased but not returned to pre-covid levels yet. Retailers now focus on omnichannel strategy, prioritizing safety and hygiene to boost consumer confidence.
Impact Of COVID-19 On Geographical Regions For Organized Retail Market:
India has one of the largest and fastest growing organized retail markets globally. Two regions in India that account for major share of the country's retail market value are Delhi NCR and Mumbai regions. Accounting for over 30% of the market, both regions witness high consumer spending power, real estate space for large format stores, and presence of national and international retailers. However, pandemic impact was also more severe here due to higher population densities and virus spread. Tier II and III cities in states like Gujarat, Karnataka, Tamil Nadu are emerging strongly post pandemic. CustomersShift towards online, safety concerns benefit neighborhood stores here. Retailers also relocate warehouses, fulfillment centers to tap rising demand from smaller cities.
China accounted for largest share in Asia Pacific region prior to pandemic for organized retail. However, post pandemic Thailand and Vietnam retail markets are expanding rapidly supported by strong economic recovery. Growing popularity of e-commerce and changing consumer shopping patterns benefits these developing economies. Domestic retailers flourish catering to demand for value goods and daily use ranges locally, gaining over imports reliant retail. Governments also promote local retail sectors stimulating employment and spending. Overall preference shifts towards smaller private stores versus destination malls benefits localized retail growth across Southeast Asia.
What are the key data covered in this Organized Retail Market report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the Organized Retail Market's growth between 2024 and 2031.
:- Accurate calculation of the size of the Organized Retail Market and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behavior
:- Organized Retail Market Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market's competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of Organized Retail Market vendors
FAQ’s
Q.1 What are the main factors influencing the Organized Retail market?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top Organized Retail Market companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the Organized Retail market’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
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