Indian Retail Market is expected to nearly double by 2020 from 2015. But there are some challenges the retail industry is facing in India - Insights success

1. Challenges Retail Industry is Facing in India
The Indian Retail industry is one of the top five retail industries in the world and has
emerged as the most dynamic and fast-paced industry. It accounts for over 8 percent
employment and around 10 percent of India’s GDP. The Indian Retail Market is
expected to nearly double by 2020 from 2015. But there are some challenges the
retail industry is facing in India.
Indian Consumer
A decade ago, the Indian consumer used to save most of his income and purchase
the bare necessities. The Indian consumer was satisfied with only necessary
requirements. There was no place for unnecessary needs and luxuries. But that time
has gone. The Indian consumer has gone through a remarkable transformation. And
now the consumer is armed with higher income, credit cards, desire to improve the
standard of living and exposure to the shopping culture of the west. Multiple malls,
supermarkets and organised retail with a variety of products are fueling the needs of
the Indian Consumer.

2. Young Shoppers
India has a young population and it’s very large in number. The internet and
television have made an impact on the mentality of young consumers. The
generation is earning money at a very young age, and it is a lot, big thanks to BPO
and other avenues of employment that cater to students in college and schools. As a
result, they are ready to spend most of their income on apparel, electronics, and
accessories.
Higher Incomes
A number of employment opportunities have emerged due to liberalisation. Job
prospects in the country are looking up because of the expansion of domestic
corporations and entry of a number of multinationals. As a result, consumption and
income are projected to increase quickly over the upcoming year that sets the stage
for promising and exciting retail market in the future in the country.
Urbanisation
Growing urbanisation in the country is also responsible for the changing consumer
mentality. The local population gets converted from net savers to the net spenders,
as urbanisation is spreading beyond the major cities which are consistent in the both
developed countries like USA, UK and developing countries like Thailand and
Malaysia.
No Money, No Problem
A huge expansion has been taken in the financial sector. Credit cards and short-term
loans were difficult to access a decade ago. But the scenario is no longer the same.
Short-term loans and credit cards have become easily accessible. Flexible financing
options, credit card reward schemes and all other common lures are tempting the
Indian consumer to shop. From a home to an automobile, the loans are freely
available. The big-ticket items that were previously within the reach of consumer only
after the years of saying are easier to buy.Several international retailers are trying to
invest in India to leverage the strong demand of Indian consumers. In the coming
years will evolve as a mature and larger market, but to happen so, investors need to
consider all the challenges which retail marketing is facing.