India Retail Report Summary

Backgrounder:

The India Retail Report 2007 aptly documented 'Opportunity India Retail'; published by the IMAGES Group and released by Mr. Kamal Nath, Hon'ble Commerce & Industry minister, Govt. of India in January 2007, the research volume set benchmark figures on Indian retail, while sizing up the entire market with its key segments, scope and performance of key players across categories and formats.

Under the aegis of India Retail Forum (IRF), for the first time, the entire retail industry and some of the world’s top global research & consulting firms came together for a detailed study of the Indian retail industry. The book, which became a best seller across all titles of books in major book chains, also carried detailed analytical articles by 40 thought leaders from the industry and the government.

While the hard copies became must-haves for every CEO connected with Indian retail, the CD version with navigation facility, tables, graphs, pictures of hundreds of stores and shopping centres emerged as the most user-friendly tool for top level executives for use in corporate PPTs. Copies of the book were ordered from possibly every corner of the world -- reflecting IMAGES' capability of spreading the India retail story across the globe.

The past eighteen months have seen plenty of action in Indian retail; it is the right time to update the retail world with the new edition of India Retail Report. Supported by Confederation of Indian Industry (CII), Shopping Centres Association of India (SCAI) and Retailers Association of India (RAI), the India Retail Forum saw the release of this most sought after report in the presence world retail captains, corporate majors and policy makers of India and the entire retail fraternity. This year, many more organisations including National Council for Applied Economic Research (NCAER), Indian Council of Research in International Economic Relations (ICRIER), and International Food Policy Research Institute (IFPRI) have contributed well researched chapters.

550 hardbound pages of extensively researched content, the new edition, presents the India retail story in all its colours. Quantifying consumer spending and modern retail share in all consumption categories -- from food to fashion; telecom to automobiles; consumer durables to health & wellness, entertainment & leisure -- India Retail Report 2009 is an ultimate guide to the business of retail in India. Chapters pertaining to the investment climate, retail profitability and legal issues have been especially put together by industry experts -- to enable potential investors in taking informed decisions.

As per the India Retail Report the Indian retail market stood at Rs.1,330,000 crore in 2007 with an annual estimated growth of about 10.8 per cent. Of this, the share of organised retail in 2007 was estimated to be only 5.9 per cent, which was Rs.78,300 crore. Nevertheless, this modern retail segment grew at the rate of 42.4 per cent in 2007, and is expected to maintain a faster growth rate over the next three years, especially in view of the fact that major global players and Indian corporate houses are seen entering the fray in a big way. Even at the going rate, organised retail is expected to touch Rs.2,30,000 cr (at constant prices) by 2010, constituting roughly 13 per cent of the total retail market.

Quotes:

“The India Retail Report 2009 is a well researched and professionally presented document that brings forth several opportunities that could benefit the Indian consumers. I look forward to the Indian retail sector continuing on its developmental growth path and spreading its benefit to all.”

–Kamal Nath, India’s minister for Commerce & Industry.

"Many countries specially in south east Asia like Malaysia, Indonesia and Thailand have put in place regulations with a view to balance the conflicts of interests between modern retail and the traditional retailers and suppliers to modern retail. We hope to achieve the best interests of the Indian business through sustained efforts in this direction to make Indian retail truly competitive with global standards."

– Ajay Shankar, secretary, DIPP, Ministry of Commerce & Industry.

"Retailers must play a wider role in society.The traditional retailer was in many countries, an active part of the social structure of the neighbourhood. More than just a source of products or services, he was a companion, friend, advisor, source of news etc. Most modern formats do not permit such personalised interaction. However, it is important that we recognise and play our role in maintaining our neighbourhoods, preserving the environment, assisting in municipal planning and development, and playing multiple roles as good citizens. It’s not just good social behavior, its good business too!."

–Amitabh Taneja, Chairman, IMAGES Group and chief convenor, IRF.

“For retail to be modernized and contribute significantly to the consumption economy of the country, we have to involve the government and the society at large as stakeholders in the business. Unlike the IT boom in the eighties which happened without government intervention, retail development has to be an integral part of the state and central governments’ India strategy”.

– B S Nagesh, Chairman, Retailers Association of India and MD, Shoppers Stop Limited.

“The need of the hour is to sensitize all our stakeholders to the transformation that modern retail can bring in to our country. We need to develop a collaborative platform among retailers and other stakeholders that facilitates further growth of the sector. And as retailers, we need to focus on how to bring about market innovations that spur consumption and create an inclusive model that brings more consumers into the fold of modern retail”.

– Kishore Biyani, Chairman, CII Committee on Retail and Founder & CEO, Future Group.