New Delhi, Jan 14 (IANS) The overall Indian retail market has the potential to grow from $630 billion in 2015 to $1,100-1,200 billion by 2020, indicates a CII-BCG report on retail industry.
“Organized retail and ecommerce will grow rapidly to be $140-160 billion and $45-50 billion respectively by 2020. Retail sector will reap the benefits of a large, young population adding to the workforce, 70 percent increase in income levels, nuclearization of families and increasing urbanization,” said “Retail transformation: Changing your performance trajectory”, which will be unveiled at the CII National Retail Summit on Friday, according to a CII release.
The report, which assesses the impact of retail trends and imperatives for retailers to win in this emerging landscape, also highlights the challenges faced by Indian organized retailers in terms of value conscious & digitally connected consumers, lower bargaining power against suppliers, strong competition from traditional retailers & ecommerce as well as regulatory barriers.
It says that a transformation effort that can change the performance trajectory of a company can be undertaken.
“Senior leadership needs to therefore craft a large- scale transformation agenda based on three priorities – winning in the medium term to establish competitive advantage through strategic/ structural moves, Rapid cash release in the short term from current business to fund the journey and building capabilities to be future ready,” it said.
CII director general Chandrajit Banerjee said: “The retail sector is on the path of a transformational journey. Such a path would require arduous and strategic planning of the future by both stakeholders and government, keeping in mind the changing patterns in consumer behaviour, the galloping pace of e-commerce and omni-channel shopping which is redefining the ecosystem, and the critical need to expand the base of organized retail.”