Retail Market to touch US $ 2 Trillion by 2033

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Retail Market to touch US $ 2 Trillion by 2033

John

29/Feb/2024

A joint report by the Boston Consulting Group (BCG) and the Retailers Association of India (RAI) forecasts a remarkable growth trajectory for India's retail market, poised to reach US$ 2 trillion over the next decade.

This optimistic projection is underpinned by shifting consumer preferences towards experiential spending, such as travel and entertainment, signaling a departure from traditional purchase patterns. Despite recent challenges, including a slight dip in year-on-year growth and subdued performance by certain large retailers, the organized retail sector exhibits resilience, maintaining consistent profitability in line with global benchmarks.

Since 2010, India's retail landscape has witnessed a remarkable expansion of over 200%, fueled by a burgeoning middle class and the entry of international fashion and food chains. The sector is anticipated to sustain a robust growth rate of 9-10% in the coming years, underscoring its substantial potential.

However, navigating this competitive environment will necessitate retailers' adeptness in adapting delivery models, harnessing the power of artificial intelligence (AI) and analytics, and implementing effective cost management strategies. Notably, consumption patterns have undergone significant evolution, with diverse goods and services registering varying growth rates between FY18 and FY23.

Key consumption categories encompass food, beverages, clothing, housing, transportation, education, leisure, and personal care products. Furthermore, consumption trends highlight a discernible shift towards services and premium offerings, buoyed by increased household savings and investments. Demand for luxury items is particularly pronounced among elite households, while urbanization has spurred consumption across cities of all tiers.

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Retail Market to touch US $ 2 Trillion by 2033

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