The local Indian Retail scenario includes approximately 12 million 'Mom and Pop' outlets of which only 4% are larger than 500 sq. ft. in size. The per capita Retail space in India is among the lowest in the world: 2 sq. ft. per person as compared to 16 sq. ft. per person in the USA.
The supply-chain segment in India currently suffers from severe inefficiencies with cumulative wastages estimated to be about US$ 11 billion or 9.8% of the agriculture component of the GDP.
Low growth in the Agricultural sector over the past few years has been the result of a gradual decline in the government's capital spending on the sector that has come down to 0.5% of the GDP in FY2006 from 1.2% in FY1982.
The Purchasing Power in India is low – the average spending per month on FMCG goods, for example, is US$ 50 as compared to US$ 107 in China and US$ 390 in Hong Kong.
The least organised segments in Indian Retail are Food & grocery (1%), Jewellery (2%) and Health & beauty (2%). Most of the organised retail is prevalent in categories like Apparel, Footwear, Watches, etc.
India is the second most populous market in the world with a population of 1.03 billion. It is also among the youngest markets, with a median age of the population at 24 years.
India has the largest middle-class population at 300 million and 85% of the total population is below the age of 45 (high spending community). With the rise in the per capita disposable income, higher purchasing power and greater access to consumer finance has come higher aspirations for branded products.
Click here to view more:
Reliance Industries Limited
marketing@alchempro.com
