Knight Frank India, in association with the Retailers Association of India (RAI), on Tuesday launched the third edition of its flagship report on the retail sector – ‘Think India. Think Connected Retail’.
The report tracks the evolution of India’s modern retail market in the top six cities in India viz. Mumbai, NCR, Bengaluru, Chennai, Hyderabad and Pune as companies explore the next frontier of Omnichannel retail in a bid to survive and conquer one of the largest consumption markets in the world.
- Over the last decade, the concept of shopping has undergone a sea change in terms of format and consumer buying behaviour, ushering in a new era of modern retail across the country supported ably by the development, augmentation and modernisation of infrastructure.
- Currently, modern retail in India amounts to Rs 871 billion in the top six retail markets of the country and is projected to reach Rs 1,718 billion by 2019.
- Size of modern retail is expected to witness a substantial rise, from the current 19 per cent to 24 per cent in the next three years in the top six retail markets of the country, driven largely by Omnichannel retailing.
- NCR, with a 26 per cent share, tops the table followed by Bengaluru and Pune at 25 per cent and 21 per cent respectively.
- With a share of only 14 per cent going forward, Mumbai holds the maximum potential for the growth of modern retail.
- From the retailers’ perspective, the potential for modern retail can be unlocked sooner by adopting Omnichannel strategies, where brands would deploy offline and online stores to service the consumer in exactly the way he demands.
- Customer is at the centrestage for every Omnichannel strategy and it’s no different for retailers like Bestseller, Woodland, GAP and Shoppers Stop. They are in the process of integrating inventory and order management to give a seamless shopping experience to the customers.
- Brands like H&M have chosen to concentrate on only a multi-format approach.
CEO, Retailers Association of India, Kumar Rajagopalan, said, “The RAI-Knight Frank report is an attempt to showcase the current scenario for Omnichannel retail in India and chart the way forward. I am sure that retailers and various stakeholders to retail industry will find value in it.”
Chief Economist & Director of Research, Knight Frank India Dr Samantak Das, added, “The size of modern retail in the top six markets of the country is Rs 871 billion and this is projected to reach Rs 1,718 billion by 2019. Largely driven by online retailing, the penetration of modern retail will also witness a substantial increase, from the current 19 per cent to 24 per cent in the next three years.”
“Modern retail in India is at the cusp of unlocking new frontiers. With the advancement of technology and its increasing usage by consumers and retailers, shopping options in present times is not restricted to physical stores anymore. We have stepped into an era where both e-tailing and brick-and mortar have been seamlessly integrated to create a satisfying shopping experience. From the retailers’ perspective, the potential for modern retail can be further unlocked by adopting Omnichannel strategies, where brands would deploy offline and online stores to effortlessly service the consumer,” he further stated.
Director – Retail, Knight Frank India, Aditya Sachdeva, said, “The concept of shopping has undergone a tremendous change in terms of retail format and consumer buying behaviour thereby bringing in a new era of modern retail across the country. With the boundaries between offline and online stores blurring, Omnichannel retailing is an idea whose time has come.”
“Emergence of technology, increasing use of plastic money and mobile wallets supported by the recent initiatives, such as the FDI (Foreign Direct Investment) retail policy and state-level retail policies, where the Government is taking up the role of a facilitator to create an environment conducive to the retail business, are steps in the right direction. Customer awareness leads to higher expectations, thus innovation and collaborative working among leading players will be the key to successful Omnichannel retail in India,” he concluded.