Just 20 years ago, modern grocery retail appeared poised to conquer every consumer market in the world. Ambitious European grocers, having blanketed their home countries with supermarkets and hypermarkets, began setting their sights on growth both within and beyond the continent. They held particularly high hopes for China, India, and other emerging markets, where fast-rising consumer spending seemed to presage an unprecedented demand for gleaming new stores with large assortments, wide aisles, and bright lighting.
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space. Indian Retail Industry has immense potential as India has the second largest population with affluent middle class, rapid urbanisation and solid growth of internet.
India’s retail market is expected to grow at a Compound Annual Growth Rate (CAGR) of 10 per cent to US$ 1.6 trillion by 2026 from US$ 641 billion in 2016. While the overall retail market is expected to grow at 12 per cent per annum, modern trade would expand twice as fast at 20 per cent per annum and traditional trade at 10 per cent#. Indian retail market is divided into “Organised Retail Market” which is valued at $60 billion which is only 9 per cent of the total sector and “Unorganised Retail Market constitutes the rest 91 per cent of the sector.
India’s Business to Business (B2B) e-commerce market is expected to reach US$ 700 billion by 2020. Online retail is expected to be at par with the physical stores in the next five years. India’s total potential of Business to Consumer (B2C) is estimated to be US$ 26 billion, of which $3 billion can be achieved in the next three years from 16 product categories, according to a study by Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Institute of Foreign Trade (IIFT).
Latin America has an expanding and dynamic retail sector that relies on consumers who are anxious to spend their newly gained disposable income. In this report, we focus on Argentina, Brazil, Chile, Colombia and Mexico, countries with a booming middle class that is both affluent and aspirational. Despite macroeconomic difficulties spanning much of Latin America, consumers in the region continue to demonstrate brand loyalty. While the next few years are expected to prove economically difficult in several countries in Latin America, there are still many opportunities for retailers to gain consumer loyalty in the region, as it is home to some of the most attractive markets in the world.
- Argentina is emerging from a prolonged period of political and economic instability. Consumers are beginning to return to stores, and they are shopping more online. Argentina has the fastest-growing e-commerce market in Latin America, expanding at an annual rate of 28%.
- Many Brazilian consumers seek out foreign brands as displays of wealth, and the upcoming Olympic Games in Rio de Janeiro present an opportune time for foreign brands to gain exposure in Brazil.
- Chile expects to see an increase in e-commerce, especially as smartphone sales increase in the country.
- Colombian consumers love brands, and the country’s economy is expected to continue to grow through 2017, supporting a flourishing retail market.
- In Mexico, the retail sector is expanding rapidly, and the country’s population is young, which means consumer behavior is evolving.