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Driven by strong fundamentals, the Indian retail sector is all set to narrate a very fascinating story in the next few years. The story will be characterized by radical changes, shattering of paradigms, large investments and few failures as well. This is notwithstanding the enormous set of challenges, complexities and high degree of dispersion of the Indian retail opportunity, all of which of course, seem surmountable.

The entire world would be a keen witness and perhaps a part of this story. At this point in time, we anticipate investments of more then US$ 35 billion in the next five years time frame. This has not happened in any of the emerging markets before. These investments are expected to change the face of retail in India with organized retail growing from current levels of US$12 billion, around 4% of total retail, to around US$ 100 billion in the next five years to capture a share of around 16% of total retail. The Indian Retail Sector will offer many interesting trends and opportunities in the coming years. We have tried to capture the top trends in Indian Retail in the coming future and have presented them in this document. The trends are a mirror of shape of things to come and the overall picture looks is definitely one of the best so far.

  • US$ 35 billion to be invested in retail industry over the next 5 years


• Modern Retail Will Thrive But Traditional Retail Will Survive

• Consumption Will Shift to Lifestyle Categories

• New Retail Formats Will Emerge and Grow

• Modern Retail Will Witness Enhanced Private Equity Infusion

• Consolidation will increase in the Retail Sector

• There Will Be Creation of Large Retailer Brands (Private Labels)

• There Will Be An Interesting Inter-Play Between Retailers & Suppliers

• Modern Retail Will Face a Few Key Bottlenecks

• New Investments Will Happen in the Back-End

• Modern Retail Will Benefit Consumers and Rural Sector
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