The retail industry in India has grown exponentially in the past few years, with an increase in disposable income, urbanization, and changing lifestyle of the people. India’s retail industry is one of the fastest-growing sectors in the country and is expected to reach a massive scale in the coming years. The retail industry is considered a key driver of the Indian economy and is contributing significantly to the growth of the country.
Overview of the Retail Industry in India:
The retail industry in India can be divided into two major segments- organized retail and unorganized retail. Organized retail is the modern, structured, and formal retail sector, while unorganized retail is the traditional, unstructured, and informal sector. The organized retail industry is growing at a fast pace, with the entry of foreign and domestic players. On the other hand, unorganized retail continues to dominate the retail sector in India, accounting for about 90% of the total retail sales.
Growth of Organized Retail:
The growth of organized retail has been phenomenal in recent years, with the entry of many domestic and foreign players. The increasing disposable income, urbanization, and changing lifestyles of people have led to the growth of organized retail. The government has also played a crucial role in promoting organized retail by providing various incentives and tax benefits. The growth of e-commerce has also boosted the organized retail sector in India.
Unorganized Retail:
Unorganized retail is still a dominant sector in India, accounting for about 90% of the total retail sales. This sector is characterized by small and local shops, street vendors, and street markets. Unorganized retail is a traditional form of retailing and valent in most parts of the country. Despite its dominance, the unorganized retail sector faces various challenges, such as a lack of infrastructure, limited finance, and limited access to technology.
Retail Industry in Tier I and Tier II Cities:
The retail industry in India is growing not only in Tier I cities such as Delhi, Mumbai, and Bangalore, but also in Tier II cities such as Ahmedabad, Pune, Jaipur, and others. Tier II cities have become the hub of retail activities due to their growing consumer market and the presence of a large number of consumers. The retail industry in Tier II cities is growing rapidly, and retailers are investing heavily in these cities to tap into their consumer market.
Conclusion:
In conclusion, the retail industry in India is one of the fastest-growing sectors in the country. Organized retail is growing at a fast pace, with the entry of foreign and domestic players, while unorganized retail continues to dominate the sector. The retail industry is contributing significantly to the growth of the country and is expected to reach a massive scale in the coming years. With the growth of Tier II cities, the retail industry is expected to grow even more, providing opportunities for retailers and consumers alike.