I am happy to launch the inaugural edition of Dun & Bradstreet’s publication on India’s retail sector titled, ‘Indian Retail Industry: Challenges, Opportunities and Outlook’. The publication highlights the current status and future prospects of India’s organised retail sector. Dun & Bradstreet’s global footprint and market reach will ensure that this publication is able to draw the attention of global industry leaders and policy makers towards the Indian retail sector.

The retail sector plays an important role in the economy. In 2007, global retail sales was estimated to be over US$ 12 trillion after having recorded a CAGR of 7.7% during 2001-2007, amounting to around 22% of global GDP at current market prices. Globally, organised retail enjoys a higher penetration in developed economies viz. the US (85%), Japan (66%), the UK, France and Germany (over 80%). In India though, organized retail accounts for approximately 5-6% of total retail revenues. However, with a young population, increasing disposable income, changing lifestyles, and a robust economy, India is set to emerge as one of the fastest-growing organized retail markets in the world.

Globally however, the current economic slowdown has affected credit availability, thus weakening consumer demand and directly affecting the retail sector. According to the World Bank’s recent report on global development finance, the world economy is expected to contract by 2.9%, while trade is expected to fall notably by 10% in 2009. Despite the global economic gloom, the Indian economy is expected to grow at 6% in FY10 - providing the domestic retail sector with the impetus that it requires for the next year. With a large young population, India will continue to be a high growth retail market. However, given the current economic slowdown and changes in the organised retail landscape, some moderation is expected in retail sales growth this financial year. Indian retail companies are already focusing on expanding existing operations and are also evaluating growth in terms of consolidation.

The publication, ‘Indian Retail Industry: Challenges, Opportunities and Outlook’, provides an overview of the trends in the industry, and highlights the sector’s performance. I am sure that this publication will prove to be a comprehensive source of information on the industry. At Dun & Bradstreet, we will continue to meet your expectations through our repertoire of publications.

I look forward to receiving your feedback and suggestions.

David J. Emery
President - Asia Pacific
Dun & Bradstreet