The Growing Organized Retail Sector Is Driven By Rapid Urbanization

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The organized retail sector in India has experienced steady growth over the past decade. Organized retailers such as supermarkets and hypermarkets provide consumers with a wide variety of brands and products under one roof. Customers have come to appreciate the convenience offered through the organized retail formats. Major retailers stock quality products at reasonable prices through efficient supply chain and inventory management practices.

The Global Organized Retail Market is estimated to be valued at US$ 28.34 Billion in 2024 and is expected to exhibit a CAGR of 4.2% over the forecast period 2024-2031.

Key Takeaways

Key players operating in the Organized Retail market are Amazon, Apple, eBay, Flipkart, Future Group, Landmark Group, Pantaloons Retail, Reliance Retail, Shoppers Stop, Tata Group, Puma. Organized retailers are expanding their footprint through new store openings as well as online channels to cater to the burgeoning consumer demand across the country. With growing disposable incomes and hectic urban lifestyles, customers are increasingly opting for modern retail channels that save their ...
... time and provide a wide assortment under one roof. Several international players have also forayed into the Indian market or partnered with domestic players to gain access to the sizable population.

The global Organized Retail Market has witnessed substantial growth over the past decade led by countries such as China and India. Indian retailers are also making efforts to expand abroad by either acquiring foreign entities or forming joint ventures. For instance, Reliance Retail has partnered with various global brands to offer their products through Reliance stores. Future Group has recently partnered with UK grocery giant J Sainsbury in an attempt to expand globally. As urbanization progresses across developing Asian countries, organized retail is expected to deepen its footprint globally.

Market Drivers

Rapid urbanization has been a key driver propelling the organized retail sector in India. With higher rates of migration towards cities, urban population in India is projected to increase significantly over the coming decade. As a result of population density and modern lifestyles adopted in cities, organized retail provides a convenient shopping experience. Further, greater disposable incomes of urban households make them potential consumers of retail brands. Higher spending power has boosted the demand for quality products often found in organized retail outlets. Overall socio-economic transformation unfolding in India through urbanization is acting as a catalyst for the organized retail market.

Impact Of Geopolitical Situation On Organized Retail Market Growth:

The organized retail market growth is closely linked to the geopolitical stability and economic conditions around the world. In the current scenario, rising geopolitical tensions between major trading partners like US-China trade war, Russia-Ukraine conflict and tensions in South China sea are negatively impacting global trade and economic activities. This is posing challenges for the organized retailers who rely on imports and exports for their business operations and supply chains. The ongoing geopolitical situations have disrupted global supply chains due to sanctions, trade barriers and uncertainties. This is affecting the availability and prices of goods for retailers. Similarly, economic slowdowns and weak consumer sentiments in major economies due to geopolitical issues are reducing the discretionary spending power of customers. To overcome such challenges in the unstable environment, organized retailers need to focus on diversifying their sourcing bases, developing local supply partnerships and strategizing pricing policies to boost sales. They also need to closely track geopolitical developments and Devise contingency plans to mitigate risks.

Geographical Regions With High Organized Retail Market Concentration:

The organized retail market in terms of total sales value is highly concentrated in developed economies and major emerging markets. India and China have emerged as the biggest organized retail markets in Asia due to rising incomes, urbanization and lifestyle changes. West Europe and North America also account for a major share of the global organized retail industry owing to high consumer spending and presence of global retail majors. Within India, metropolitan cities like Delhi, Mumbai, Bengaluru contribute over 60% of the country's total organized retail revenues. Tier I and II cities are also increasingly adopting modern retail formats.

Fastest Growing Region In The Organized Retail Market:

Southeast Asian countries are expected to witness strongest growth in the organized retail market over the coming years. Rapid economic development, growing middle class, improving infrastructure and policy support for FDI in retail sector are facilitating expansion of organized retail outlets across Southeast Asian nations. Indonesia, Philippines, Vietnam and Thailand currently account for over 15% share of Asia's total organized retail revenues and this number is projected to increase substantially. These nations offer attractive opportunities for international retailers due to opportunities in consumer durable, fashion & lifestyle and convenience retail segments. Local retailers are also investing aggressively to expand reach in Tier II and III cities of Southeast Asia. The region thus remains the brightest spot for future growth of organized retail industry.

What Are The Key Data Covered In This Organized Retail Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the Organized Retail's growth between 2024 and 2031.

:- Accurate calculation of the size of the Organized Retail and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- Organized Retail Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market's competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of Organized Retail vendors

FAQ’s

Q.1 What are the main factors influencing the Organized Retail?

Q.2 Which companies are the major sources in this industry?

Q.3 What are the market’s opportunities, risks, and general structure?

Q.4 Which of the top Organized Retail companies compare in terms of sales, revenue, and prices?

Q.5 Which businesses serve as the Organized Retail’s distributors, traders, and dealers?

Q.6 How are market types and applications and deals, revenue, and value explored?

Q.7 What does a business area’s assessment of agreements, income, and value implicate?

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About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)