E di­tor’s Let­ter

Shoes & Accessories - - Contents - AMITABH TANEJA Ed­i­tor-in-chief

The In­dian re­tail in­dus­try has emerged more dy­namic and fast-paced due to the en­try of sev­eral ma­jor play­ers. It is be­lieved that to­tal con­sump­tion ex­pen­di­ture will reach al­most $3,600 bil­lion by 2020 from $1,824 bil­lion last year.

Ac­count­ing for over 10% of GDP and around 8% of over­all em­ploy­ment, the coun­try is the world’s fifth-largest global des­ti­na­tion in the re­tail space. In­dia’s re­tail mar­ket is ex­pected to in­crease by 60% to touch $1.1 tril­lion by 2020, on the back of fac­tors like ris­ing in­comes and life­style changes by mid­dle class and in­creased dig­i­tal con­nec­tiv­ity. While the over­all re­tail mar­ket is ex­pected to grow at 12% per an­num, e-com­merce is ex­pected to be at par with the phys­i­cal stores soon.

The in­dus­try has re­ceived FDI eq­uity in­flows to­talling $1.42 bil­lion dur­ing 2000 to 2018. In­vest­ments by pri­vate eq­uity firms and wealth firms in In­dian re­tail sec­tor reached $800 mil­lion last year. The de­vel­op­ment can be at­trib­uted to the gov­ern­ment’s sev­eral ini­tia­tives to im­prove the in­dus­try; it ‘s ex­pected that it may change the FDI rules in other seg­ments as well.

The gov­ern­ment has al­lowed 100% FDI in on­line re­tail of goods and ser­vices through the au­to­matic route, pro­vid­ing clar­ity. E-com­merce is ex­pand­ing steadily in the coun­try and it is prob­a­bly cre­at­ing the big­gest rev­o­lu­tion in the in­dus­try.

It’s clear that the op­por­tu­ni­ties will grow, re­sult­ing in a healthy as well as a ro­bust com­pe­ti­tion. With fes­tive sea­son about to be­gin, and big sales al­ready hap­pen­ing, stake­hold­ers have more to gain than to lose.

Tak­ing this op­por­tu­nity, we would like to wish you a won­der­ful and pros­per­ous Di­wali.

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