‘Global retailers optimistic about Indian market’, says PwC

Despite uncertainties, global retailers are still bullish

about the Indian market, said Rachna Nath, Executive Director, India Leader for Retail and Consumer, PricewaterhouseCoopers. With the economies of developed markets witnessing turmoil, “Over 50 per cent of retail CEOs we spoke to, for our annual global survey, believe the emerging markets, especially India, are their best bet,” said Nath, releasing a report on emerging trends in retail at a FICCI seminar.

“There is a lot of anticipation and indecisiveness around FDI in multi-brand retail. But there is no real reason for fear. It is not just the kiranas that are worried about modern retail formats, CEOs of big retail companies are equally worried about the mom-and-pop stores,” said Nath.

According to the report, the Indian retail industry is pegged at $500 billion (Rs 2,774,500 crores) and is expected to reach $1.3 trillion (Rs 72,137,000 crores) by 2020. Organised retail accounts for just 5 per cent of this today, it will reach 25 per cent by 2020.

E-commerce will play a significant role in the coming years. Right now, players are bleeding, but they are in it for the long game. Value retailers are increasingly becoming important. The report cites the example of Landmark Group-owned Max which has proven that fashion need not be expensive. “While higher income has pushed the retail sector on the growth path, consumers are thinking twice about spending as they seek value in what they buy,” said Nath. And there may be possible de-growth too, cautions Nath. “Inefficient stores may close down. But de-growth is a critical part of consolidation.”