India’s retail sector to be worth $1.2 trn by 2020: CII
New Delhi: The country’s retail sector is likely to touch USD 1.2 trillion by 2020 from the current level of USD 550 billion, helped by a rapid growth in the e-commerce market which will grow to over USD 100 billion during the period, according to industry body CII.
“E-commerce is driving thoughts of customers and retailers but that does not mean brick and mortar channel is going to be killed. Retailers will have to innovate their business model to reach the customers and to meet their aspirations,” Adesh Gupta, Chairman, CII Retail 2015 and Promoter, Liberty Group said.
“It is expected that India’s e-commerce market will grow from USD 2.9 billion in 2013 to over USD 100 billion by 2020…The online retail can reach smaller cities much better than offline channel, giving it a bigger advantage. Collaboration between both organised and unorganised retail companies could be the real game changer,” he added.
Agreeing with Gupta, Somany Ceramics CMD Shreekant Somany said: “E-commerce is probably creating the biggest disruption in the retail industry and this trend will continue in the years to come…Partnering is the best way out.”
According to a report titled ‘The Indian Retail Medley’ while organised and online retail will grow multi-fold, unorganised retail will continue to dominate the sector.