Retail to outstrip GDP: KPMG
By Our Corporate Bureau | 29 Sep 2005
New Delhi: The organised retail sector in India will grow at a higher rate than GDP growth in the next five years driven by changing lifestyles, strong income growth and favourable demographic patterns, according to a KPMG report titled `Consumer Markets in India: the next big thing.'
According
to the report, the annual growth of department stores
has been estimated at 24 per cent, which is faster than
overall retail; and supermarkets have taken an increased
share of general food and grocery trade over the last
two decades.
Though affluence remains concentrated in urban centers
the report reveals that the sheer size and potential
of the rural segment has been underestimated. The Indian
market is evolving dynamically and there is hidden consumption
power in the low-income rural areas that offers considerable
opportunities for organised retailers in the kind of
rural territories that many companies have failed to
address.
The retail growth therein is expected to be double-digit if infrastructure allows the consumer companies to reach new markets at reasonable costs.
The KPMG report further reveals that the Indian consumer is emerging to be more trend-conscious with the development of modern urban lifestyles.
The reports adds that the food and beverages segment is an emerging growth area while the gems and jewellery market is a key emerging area with significant potential.
