Omni-channel to fuel growth of modern retail
Knight Frank India in association with the Retailers Association of India (RAI) today launched the third edition of its flagship report on the retail sector – ‘Think India. Think Connected Retail’. The report tracks the evolution of India’s modern retail market in the top six cities in India viz. Mumbai, NCR, Bengaluru, Chennai, Hyderabad and Pune as companies explore the next frontier of Omni-channel retail in a bid to survive and conquer one of the largest consumption markets in the world.
Over the last decade, the concept of shopping has undergone a sea change in terms of format and consumer buying behaviour, ushering in a new era of modern retail across the country supported ably by the development, augmentation and modernisation of infrastructure.
Currently, modern retail in India amounts to INR 871 bn in the top six retail markets of the country and is projected to reach INR 1,718 bn by 2019.
Size of modern retail is expected to witness a substantial rise, from the current 19% to 24% in the next three years in the top six retail markets of the country, driven largely by omni-channel retailing.
NCR, with a 26% share, tops the table followed by Bengaluru and Pune at 25% and 21% respectively.
With a share of only 14% going forward, Mumbai holds the maximum potential for the growth of modern retail.
From the retailers’ perspective, the potential for modern retail can be unlocked sooner by adopting omni-channel strategies, where brands would deploy offline and online stores to service the consumer in exactly the way he demands.
Customer is at the centre stage for every omni-channel strategy and it’s no different for retailers like Bestseller, Woodland, GAP and Shoppers stop. They are in the process of integrating inventory and order management to give a seamless shopping experience to the customers.
Brands like H&M have chosen to concentrate on only a multi-format approach.
Kumar Rajagopalan, CEO, Retailers Association of India said, “The RAI Knight Frank report – is an attempt to showcase the current scenario for omni-channel retail in India and chart the way forward. I am sure that retailers and various stakeholders to retail industry will find value in it.”
Dr. Samantak Das, Chief Economist & Director of Research, Knight Frank India added, “The size of modern retail in the top six markets of the country is INR 871 bn and this is projected to reach INR 1,718 bn by 2019. Largely driven by online retailing, the penetration of modern retail will also witness a substantial increase, from the current 19% to 24% in the next three years. Modern retail in India is at the cusp of unlocking new frontiers. With the advancement of technology and its increasing usage by consumers and retailers, shopping options in present times is not restricted to physical stores anymore. We have stepped into an era where both e-tailing and brick-and mortar have been seamlessly integrated to create a satisfying shopping experience. From the retailers’ perspective, the potential for modern retail can be further unlocked by adopting omni-channel strategies, where brands would deploy offline and online stores to effortlessly service the consumer.”