Organized Food Retailing in India - SWOT Analysis
Overview
Retail is being hailed as India’s industry of the future, incited by the country’s huge urban middle class population and the on-going consumption boom. India has one of the fastest growing retail markets in the world. The Food & grocery segment is the largest retail category and accounts for ~69% of the total retail market. The organized food retailing has the highest share in overall organized retail market.
With changing lifestyles, increasing disposable income, urbanization and increasing no. of malls, there is huge potential for organized food retail sector to grow in India. Organized retail is a new phenomenon in India and despite the current downturn in the market, the industry is growing exponentially, as economic growth lifts more of Indians into the comfortable consuming classes and rising awareness pushes the consumers at the doors of organized retail. Also, retailers’ innovation to pull the shoppers in will help the industry derive growth.
We have estimated the industry to grow at a CAGR of 30% till 2015 and would be soaring to new heights. Indian organized food retail currently pegged at USD 9 billion in 2011 will jump to reach USD 26 Billion by 2015.
Scope of the report
Retail is being hailed as India’s industry of the future, incited by the country’s huge urban middle class population and the on-going consumption boom. India has one of the fastest growing retail markets in the world. The Food & grocery segment is the largest retail category and accounts for ~69% of the total retail market. The organized food retailing has the highest share in overall organized retail market.
With changing lifestyles, increasing disposable income, urbanization and increasing no. of malls, there is huge potential for organized food retail sector to grow in India. Organized retail is a new phenomenon in India and despite the current downturn in the market, the industry is growing exponentially, as economic growth lifts more of Indians into the comfortable consuming classes and rising awareness pushes the consumers at the doors of organized retail. Also, retailers’ innovation to pull the shoppers in will help the industry derive growth.
We have estimated the industry to grow at a CAGR of 30% till 2015 and would be soaring to new heights. Indian organized food retail currently pegged at USD 9 billion in 2011 will jump to reach USD 26 Billion by 2015.
Scope of the report
- Industry at a glance
- Contains a study of the major internal and external factors affecting the industry in the form of a SWOT framework
- Gain insight into the industry in terms of the opportunities and threats that will augment and restrict its growth
- Get knowledge about the forte of the industry which will help it to ride in the lead
OVERVIEW
SWOT ANALYSIS
STRENGTHS
1. Largest share in Retail
2. Large customer base
3. HugeAgricultural Production
4. Ample availability of retail space in India
WEAKNESS
ES
1. Lack of trained workforce
2. Lack of adequate infrastructure
3. High capital, lower margins
4. Largely Unorganized and fragmented
OPPORTUNITIES
1. Surge in disposable incomes
2. Rising Middle Class
3. Surge in Credit/Debit Card Usage
4. Rising Urban population
5. Foreign Direct Investment in retail
THREATS
1. Food Inflation
2. Rising Real Estate Costs
SWOT ANALYSIS
STRENGTHS
1. Largest share in Retail
2. Large customer base
3. HugeAgricultural Production
4. Ample availability of retail space in India
WEAKNESS
ES
1. Lack of trained workforce
2. Lack of adequate infrastructure
3. High capital, lower margins
4. Largely Unorganized and fragmented
OPPORTUNITIES
1. Surge in disposable incomes
2. Rising Middle Class
3. Surge in Credit/Debit Card Usage
4. Rising Urban population
5. Foreign Direct Investment in retail
THREATS
1. Food Inflation
2. Rising Real Estate Costs
LIST OF FIGURES & TABLES
Figure 1 Distribution of Retail Sector
Figure 2 Distribution of organized retail sector
Figure 3India’s population distribution
Figure 4 India’s Food grain & Milk Production (In Mn Tones, 2000-12)
Figure 5 Number of malls in India (2003-12E)
Figure 6 Retail Space Additions (In Mn Sq.Ft, 2010-2012)
Figure 7 Per Capita Income India (In INR, 2006-15E)
Figure 8 Number of Middle Class Households (In Millions, Current-2026E)
Figure 9 Distribution of electronic payments by volume India 2010
Figure 10 Credit and Debit Card users in India (In Millions, 2006-10)
Figure 11 Urban Population as a % of Total Population (1951-2015E)
Figure 12 Food inflation In India
Table 1 Commodity-Wise Cold Storage Capacity
Figure 1 Distribution of Retail Sector
Figure 2 Distribution of organized retail sector
Figure 3India’s population distribution
Figure 4 India’s Food grain & Milk Production (In Mn Tones, 2000-12)
Figure 5 Number of malls in India (2003-12E)
Figure 6 Retail Space Additions (In Mn Sq.Ft, 2010-2012)
Figure 7 Per Capita Income India (In INR, 2006-15E)
Figure 8 Number of Middle Class Households (In Millions, Current-2026E)
Figure 9 Distribution of electronic payments by volume India 2010
Figure 10 Credit and Debit Card users in India (In Millions, 2006-10)
Figure 11 Urban Population as a % of Total Population (1951-2015E)
Figure 12 Food inflation In India
Table 1 Commodity-Wise Cold Storage Capacity
