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Retail

Industry Summary

  • Valued at $1200 billion in FY21 and is expected to grow to $1750 billion at 7.8% CAGR (2021-26) and $2 trillion by 2032. It makes up 10% of the GDP and is responsible for 8% of employment
  • The government has now allowed 100% FDI in single-brand retail trading and 51% FDI in multi-brand retailing
  • Online retail sales, which account for 10% of the overall market, account for 23% of the organized retail
  • India’s eCommerce sector received US$ 15 billion of PE/VC investments in 2021 which is a 5.4 times increase YoY.
  • India’s social commerce has the potential to expand to US$16–20 billion in FY25, growing at a CAGR of 55-60%.

Value Chain

Step 1

Sourcing

Step 2

Inbound Logistics

Step 3

Inventory

Step 4

Outbound Logistics

Step 5

In-store Operations

Cost Drivers

  • Platform Fee
  • Inventory & Supply Chain costs
  • Promotion and Marketing
  • Retail Lease
  • Stock in Trade

Revenue Drivers

  • Private label brand sales
  • Loyalty & Rewards program
  • Cross-selling
  • Listing fee & customer EMI

Growth Drivers

  • Tier 2 and 3 cities
  • Retail friendly Government Policies
  • Internet Penetration & Online payment
  • Foreign Direct Investment (FDI)

Key Customers

  • Households
  • Students

Key Players

  • Avenue Supermarts
  • Future Retail
  • Aditya Burla Fashion
  • Trent (Westside, Landmark)

Segments

  • Food and Grocery
  • Apparel
  • Jewellery & Watches
  • Consumer Durables and Appliances

Key Metrics

  • Fill Rate
  • OTIF (On Time in Full)
  • CLV (Customer Lifetime Value)
  • Funnel Metrics