The organized retail market refers to the retailers operating in India that are registered as companies. Such retailers have physical stores in different cities and states across the country. Organized retailers offer convenience to shoppers by housing several brands under one roof. They offer a wide variety of goods across categories like fashion & clothing, consumer electronics, personal & home care, food & beverages, and more. Organized retail has revolutionized the shopping experience in India by introducing shopping malls, modern retail formats like supermarkets and hypermarkets.
The Global Organized Retail Market is estimated to be valued at US$ 28.34 Bn 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. These players operate several physical stores as well as e-commerce platforms to offer a seamless shopping experience.
The Organized Retail Market sector in India has been witnessing robust growth on account of rising disposable incomes, rapidly expanding middle-class population, and rising consumerism among Indians. Various initiatives undertaken by organized retailers such as loyalty programs, exclusive deals, sales and marketing campaigns have spurred the demand for their products over the years.
Technological advancements have redefined shopping trends in India with the integration of AI, IoT, analytics and omnichannel experience. Organized retailers are embracing techniques like virtual and augmented reality for product demos, AIpowered customer service, interactive kiosks and beacons for location-based personalized service. This has enhanced customers’ in-store experience and brand engagement.
Market Trends
Growing Prominence Of Online Shopping: More and more consumers are shopping online owing to convenience and attractive offers. Organized retailers are investing heavily in strengthening their online presence and omnichannel capabilities.
Rise Of Private Labels Brands: Organized retailers have been developing exclusive private label brands to improve margins and differentiate product offerings. This has also provided new opportunities for collaboration with domestic manufacturers.
Market Opportunities
Tier II & III Cities: Organized retail penetration is relatively low in smaller cities and towns compared to metros. These emerging markets offer huge growth potential.
Omnichannel Integration: Seamless integration of online and offline shopping experiences through technologies would reinforce customer loyalty and brand commitment.
Impact of COVID-19 on Organized Retail Market Growth
The outbreak of COVID-19 pandemic severely impacted the growth of organized retail market globally. During the initial lockdown phase in most countries, malls, shopping complexes and retail stores had to be shut down for months which led to decline in sales. Customers chose to stay indoors due to fear of virus spread. The shift towards Work from Home gave further hit to commercial spaces and retail market oriented around offices witnessed sales declining at a faster pace. However, with relaxations coming into effect in later part of 2020 and 2021, retailers started opening physical stores with strict enforcement of safety protocols like social distancing, use of masks and sanitizers. Initially footfalls were low but gradually increased as vaccination drives progressed. Through the crisis, e-commerce channels benefitted exponentially as housebound customers turned to online platforms to purchase daily essentials and other products without risking exposure. Many retailers adapted quickly to the new normal by scaling up their investments in digital infrastructure and supply chain to cater to rising demand for contactless delivery options. Even post pandemic, the online channels are expected to account for higher share in organized retail market. While physical stores will still remain the mainstay, omnichannel presence combining both online and offline networks would be critical for retailers to gain back lost growth momentum as well as attract new customers in future.
Geographical Regions Where Value Of Organized Retail Market Is Concentrated
Organized retail market in terms of value is highly concentrated in developed regions of North America and Europe. Countries like United States, United Kingdom, Germany, France account for more than 50% share of global organized retail sales revenues. This is due to high spending power of consumers, presence of global retail giants and organized retail penetrating into smaller towns over the years. The market in these regions is mostly organized and consolidated compared to other developing economies. However, Asian countries like China, India are emerging as the new hotspots for future growth on back of rising middle class population, urbanization and shift towards modern retailing in tier 2 and tier 3 cities.
Fastest Growing Region For Organized Retail Market
South East Asia region which includes countries like India, Indonesia, Thailand, Vietnam, Philippines is expected to be the fastest growing for organized retail market during the forecast period. This is owing to favorable demographics with more than 60% population under 35 years of age and increasing disposable incomes of middle class fueling demand for lifestyle products. Ease of doing business and relaxed regulations are encouraging international retailers to set up stores and partner with local players. Asia Pacific region is estimated to surpass Western markets and account for over 40% share in global organized retail industry revenues by 2031 driven majorly by countries like India which has young population and growing digitization transforming traditional mom-pop stores into modern retail experience.
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)
