- June 4, 2018
- Posted by: Anish
- Category: Feed
On May 09, 2018, the U.S based retailer Walmart acquired a staggering 77% stake for 16 billion USD in Indian based e-commerce platform Flipkart (Valued at the US $22B). Walmart acquisition of Flipkart, a mere 10-year-old company asserts the confidence of the world in the Indian retail market.
The Indian retail market is expected to grow over 60 percent to hit USD 1 trillion by 2020, as per a report by Assocham (Industry Chamber) and MRRS, an independent Market Research Agency.
This growth in the retail market will be led by factors such as a change in lifestyle and rising income middle class, which helped the FMCG industry to grow at a rapid speed over the past few years.
Indian retail is one of the fastest growing markets in the world due to economic growth. Rising income and demand for quality products has led to boost in consumer expenditure. Total consumption expenditure is expected to reach nearly US$ 3.6 Trillion by 2020 from US$ 1.6 Trillion in 2016.
India ecommerce market will grow at a 21% CAGR over the next 10 years to $202 billion. Amazon’s founder Jeff Bezos has committed $5 billion for India and, in a recent shareholder letter, he said the subscription service Prime added more members in India.
Organised Retail Penetration (ORP) in India is low (10 percent) compared with that in other countries, such as the US (85 percent). This indicates strong growth potential for organized retail in India.
The Indian retail market is in its nascent stage; however, the organized retail in India is growing at a CAGR of 20-25% per year. The unorganized retail sector in India has the huge untapped potential for adopting a digital mode of payments.
The modern retail market in India is expected to grow from US$ 70.45 billion in 2016 to US$ 111.25 billion in 2019. Supermarkets to total 8,500 by 2016 from 500 in 2006. FMCG market in India is expected to grow at a CAGR (compound annual growth rate) of 21% and is expected to reach USD 103.7 billion by 2020 from USD 49 billion in 2016.
Hence the question, are you ready to participate in the Indian Retail growth?
- Understand the demands of Indian business and its key resources?
- Have realistic expectations regarding return on investments from business activities?
- Are prepared to modify products and services to India market as well as provide training and after-sales service?
- Have the commitment from ownership and are prepared to fund exporting activities?
May 2018: Presenting Yerba Mate Tea at the National Day of Argentina in Taj Mumbai
Mr. Gabriel Rosa, Deputy Consul, Argentina (left), Mr. Anish Narang, MD, Karavan Enterprises with The Consul General of Argentina (Mumbai), Mr. Alejandro Zothner Meyer (Centre), Chado Tea India CEO, Mr. Amit Mehta and Mrs. Trishala Mehta celebrating the National Day of Argentina at The Taj Mahal Palace Hotel in Mumbai.