Retailers may be mulling the cost of operations, looking out for a phase of consolidation and cutting corners to get by a slowdown. And yet, this sector is growing fast and helping it in its growth is the great Indian middle-class. That is what the India Retail Report 2009 by Images F&R Research says.
The report, which will be unveiled by Commerce Minister Kamal Nath at the India Retail Forum in Mumbai on Thursday, has pegged the growing middle-class income as one of the key growth drivers for the retail industry.
“India’s 300 million-odd middle-class, the ‘real’ consumers, has attracted the attention of the world. As the economy grows so does India’s middle-class,” said the report. “It is estimated that 7 crore Indians earn a salary of over $19,500 a year (Rs 9,07,393 approximately), a figure that is set to rise to 14 crore people by 2011. The number of effective consumers is expected to swell to over 60 crore by this time,” it added.
“The Indian retail sector is set to grow at 42 per cent, and is set to outgrow the telecom sector by 2011 as penetration of organised retail grows to catch up with the more mature market,” said D Shivakumar, vice-president and managing director, Nokia India adding that the consumer was the common thread between a retailer and manufacturer.
Even as industry captains debate over the importance of collaboration between the private and the public sector for the overall growth of the health and wellness industry, the segment has emerged the fastest growing one in the retail sector.