Retail
With combined sales of $978.5 billion by the Top 250 global companies in 2006, the Top 10 global retailers captured 30.1% of this total, a healthy 10.2% rise over 2005.
In India, in 2006, retail sales notched $395 billion when measured using current exchange rates. Of this, it has been estimated that only 3% is represented by modern retailing (the figure for big cities is estimated at between 10% and 20%). Though still a nascent market in India, the industry is covering ground at rapid speed. In the 1990s roughly one million square feet of modern retail space was added in India. Starting in 2001, this pace increased dramatically. In 2003 alone, roughly 10 million square feet were added. Most analysts now expect modern retailing to achieve between 6% and 10% of retail sales by 2010.
Interest in retailing has fuelled both domestic and international interest. On the domestic front, there are significant strikes by Indian players to enter, consolidate, and grow their presence in this segment. However, opposition to their presence is growing louder. Due to lack of adequate understanding of government policy and an uncertain road ahead, international players are cautiously eyeing the retailing sector.
However, the market is buoyant for India. With nearly 60% of the population under the age of 30, the next few years will see a rapid rise in the number of young households, thereby stimulating retail spending. Young households tend to spend more on goods rather than services, tend not to save much, and tend to spend heavily on apparel and products for the home. The degree to which the financial system supports the growth of consumer credit will determine the scope for big ticket spending by young households.
We are privileged to work with exceptional clients across the retail and consumer products sectors. The success of our business is founded on making a difference on each and every engagement with these clients.
