Corporatised retail to witness sharp growth by 2023

A report by Technopak reveals, corporatised retail is making inroads in the apparel sector in India. From just 8

percent in 2013, corporatised retail or retail businesses-owned and managed by a limited company or a partnership firm will shoot up to 24 percent by 2023. From 5 billion dollars (over 30,000 crores) in 2001, the size of corporatised retail has jumped to 34 billion dollars (over Rs 2,00,00 crores) in 2012. At present, though corporatised retail is estimated at 8 percent penetration of the total retail sector, apparels enjoy a higher share at 20 percent.

According to Ankur Bisen, Senior Vice-President, Retail, Technopak, the fashion market and apparel retail were expected to witness further penetration of corporatised retail and it would drive growth beyond major urban clusters. Multiple retail formats across specialty retail, hypermarket, cash and carry and e-commerce will drive this growth. He said that the share of coroporatised retail is expected to go up over next 5 years to contribute 28 percent share by 2018.

The Technopak analysis revealed that while the apparel market share in the total market was Rs 2,27,940 crores in 2013, modern retail accounted for Rs 45,590 crores of this in 2013, cornering a 20 percent share. The research company has estimated that by 2018, the apparel market share in the total market would jump to Rs 3,54,570 crores, and modern retail would account for Rs 99,280 crores in 2018, with 28 percent share.