The Indian retail market is projected to grow at a 10% CAGR from 2022 to 2025, driven by population growth, rising incomes, and urbanization. This growth benefits various stakeholders including consumers, retailers, manufacturers, logistics providers, and developers, highlighting the importance of competition and innovation. Furthermore, the retail expansion has created employment opportunities across different city tiers, impacting both unskilled and skilled labor markets.

1. MARKET IMPLICATIONS OF
NEW RETAIL DEVELOPMENTS
Prof. Manish Sharma

2. MARKET IMPLICATIONS OF NEW RETAIL
DEVELOPMENTS
The market size of Indian retail is expected to
grow at a compound annual growth rate of of
10% from year 2022 to 2025.This growth is driven
by a number of factors, including the growing
population, rising incomes, aggressive spending
pattern in the new and young working class and
increasing urbanization.

3. MARKET IMPLICATIONS OF NEW RETAIL
DEVELOPMENTS
Previous two decades in Indian retail business
have opened avenues for growth for all the stake
holders in respective ways. These stake holders
are consumers, retailers, manufacturers, logistics
services providers, shopping mall and FEC
( Family entertainment center) developers and
operators, architects and design consultants,
employable workforce both in the pure urban
and semi urban locations.

4. MARKET IMPLICATIONS OF NEW RETAIL
DEVELOPMENTS
1. Consumers - Consumers have gained from the
entry of every new retailer and brand as ever
present competition led to a price war which is a
sign of a healthy market. New and unique
products were introduced by retailers and
consumers got educated and demanding in the
process. New government policy and rules made it
mandatory for retailers and manufactures to
provide all important information about the
products on labels.

5. MARKET IMPLICATIONS OF NEW RETAIL DEVELOPMENTS
2. Retailers – Several large and mid size Indian
business conglomerates entered into the retail
business, as a step of integration. Core
manufacturing companies in different industries
came into retail business. Good and successful
retailers were and are capable to expand their
footprint across the country and give a good
shopping experience to everyone.
Example – Core apparel fabricator/exporter/retailer
Fabindia entered into food and grocery retail

6. MARKET IMPLICATIONS OF NEW RETAIL
DEVELOPMENTS
3. Manufacturers – With a surge in demand for
newer and improved products by consumers
retailers were able to place bulk size orders and
manufactures developed secured
customers/retailers. Large format retailers are
the main drivers for volume in demand.

7. MARKET IMPLICATIONS OF NEW RETAIL
DEVELOPMENTS
4. Logistics Service Providers – Entry of new
retailers in various categories and their fast
expansion on PAN India scale, logistics providers
of all levels, big or small received a boost. An
efficient and reliable logistics service provider
became necessary for maintaining inventory.
Also, this brought a higher level of performance
by the service providers.

8. MARKET IMPLICATIONS OF NEW RETAIL
DEVELOPMENTS
5. Shopping Mall and FEC Developers & Operators –
Real estate developers across the country, particularly
tier one and tier two cities saw a big opportunity in the
shopping mall / FEC development business as the space
available for retailers was in good supply. Additionally
there was no large dedicated floor area for important
drivers for traffic like multiplexes, departmental stores,
food courts and hyper markets. Developers planned for
these spaces with good parking facilities and other
services. Shopping malls gave an impetus to the
growing retail business in India.

9. MARKET IMPLICATIONS OF NEW RETAIL
DEVELOPMENTS
6. Architects & Design Consultants – Design
and layouts of retail stores in every size were
taken to the next level by the architects and store
designers as new retailers and small owners
wanted to give an uplift to their face and the
shopping experience to their customers.
Customers have seen far better store interiors in
every category of retail which was not seen two
decades ago.

10. MARKET IMPLICATIONS OF NEW RETAIL
DEVELOPMENTS
7. Employable Workforce (In Pure Urban and Semi
Urban Areas) – Retail expansion from tier one, tier two
and tier three city locations to small tier four and tier
five towns gave employment opportunities to young
people who were not even graduates. This workforce
was not used for any technical function but for basic
sales staff and other operations.
This employment was beside other job opportunities
which were there for technically qualified and skilled
people required for projects work, electrical,
airconditioning, IT services and maintenance works.