Dun & Bradstreet India is pleased to present the inaugural edition of ‘Indian Retail Industry: Challenges, Opportunities and Outlook’. The publication is an attempt to highlight the opportunities available and the challenges faced by the organised retail sector in India. The publication will be a valuable ready reference for India’s sunrise sector.

The Indian economy recorded a CAGR growth of 8.7% during FY05- FY09 and has had a major impact on the growth of organised retail in the country. This economic growth manifests itself in demographic changes, shift in consumer behaviour, change in lifestyle, and increasing urbanisation. These factors have had a big impact, and the organised retail sector reported a 33% CAGR during 2004-2007. However, despite the robust growth, organised retail accounted for a minuscule 5-6% of the Rs 13,300-billion-retail industry in 2007. Spotting the opportunity, many domestic and foreign players have entered the organised retail arena in the past few years with ambitious plans to expand across verticals, formats, and cities.

However, the retail industry in India does face numerous challenges. Besides the economic slowdown, Indian retailers have to counter high operating costs, low margins and most importantly, a slump in customer confidence. In addition, high real estate costs, government regulations, especially for foreign investors, and inefficient supply chain management, among others, are increasingly proving to be major hindrances for the otherwise flourishing organised retail market in India.

Nonetheless, India is one of the youngest and largest consumer markets in the world with a billion-plus population and a median age of around 25 years. This provides a unique opportunity for organised retail companies to innovate with distribution, logistics and product offerings.

I hope you enjoy reading ‘Indian Retail Industry: Challenges, Opportunities and Outlook’ and I look forward to receiving your suggestions.

Dr Manoj Vaish
President & CEO - India
Dun & Bradstreet