by The organized retail market refers to the distribution channel of retail products and services through planned business establishments. The retail outlets operating under organized retail have standardized operating procedures and trained personnel. These outlets provide consumers a greater value in terms of shopping experience, ease of browsing products, and availability of a wide range products and services under one roof. Major types of organized retail in India include hypermarkets, supermarkets, convenience stores, department stores, specialty stores, and e-commerce. The Organized Retail Market sector has brought about transparency in business transactions, introduced supply chain management techniques and provided people access to quality products at competitive prices.
Global Organized Retail Market is estimated to be valued at US$ 28.34 Bn in 2024 and is expected to exhibit a CAGR of 4.2% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the organized retail market are Amazon, Apple, eBay, Flipkart, Future Group, Landmark Group, Pantaloons Retail, Reliance Retail, Shoppers Stop, Tata Group, Puma. These players are focusing on expanding their product portfolio by launching owned private labels, improving last-mile connectivity, building retail infrastructure, and exploring new retail formats. Asia pacific region provides numerous opportunities for organized retail sector growth owing rapid urbanization, rising middle class population and changing consumer buying behavior. Increasing penetration of organized retail outlets in tier 2 and tier 3 cities of developing countries is further supporting market expansion. Countries like India and China are expected to witness strong growth in organized retail market due to growing young demographic, increasing rate of internet penetration and rising disposable incomes.
Market Drivers
Rising Disposable Income: Improvement in the average wage levels across urban and rural areas over the past decade has driven a significant increase in disposable incomes. This has boosted consumer spending on retail products and services offered by organized retail outlets.
Rapid Urbanization: Rapid urbanization has led to the development of modern cities which further support the growth of organized retail sector. Shift of population from rural to urban regions has created a demand for one-stop shopping solutions.
Increasing Internet And Smartphone Penetration: Rising penetration of internet and smartphones have enabled online sales for retail brands. E-commerce has emerged as a major sales channel for organized retailers to attract new customer base.
PEST Analysis
Political: The government’s policies on FDI regulations in the retail sector has had a significant impact on the growth of organized retail in the country. Changing policies regarding land acquisition norms and regulations can influence expansion plans.
Economic: India’s rising middle class and increasing disposable incomes have supported the growth of the retail sector. A stable macroeconomic environment and growth in private consumption bodes well for organized retail.
Social: Rapid urbanization and change in consumer lifestyles and preferences towards convenience and quality have boosted organized retail. The young demographic profile demands quality shopping experiences offered by organized retail players.
Technological: Advanced technologies like AI, data analytics, smart supply chain solutions have enabled efficient inventory management, predictive analytics for demand forecasting and personalization. Digital and omnichannel integration helps organized retailers engage better with consumers.
The organized retail market in India is currently concentrated in major metro cities and urban centers in terms of value. Delhi/NCR, Mumbai, Bangalore, Hyderabad, Pune, Ahmedabad are the major revenue generators for organized retailers due to higher purchasing power of consumers in these areas.
The southern region has emerged as the fastest growing organized retail market in India. States like Telangana, Karnataka, Andhra Pradesh and Tamil Nadu have witnessed strong retail infrastructure development and consumer spending. Increasing mall culture, new retail concepts and expanding E-commerce adoption are supporting market growth in South India.
What Are The Key Data Covered In This Organized Retail Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the Organized Retail’s growth between 2024 and 2031.
:- Accurate calculation of the size of the Organized Retail and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- Organized Retail Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of Organized Retail vendors
FAQ’s
Q.1 What are the main factors influencing the Organized Retail?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top Organized Retail companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the Organized Retail’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
