The organised retail sector in India will grow at a
higher rate than GDP growth in the next five years driven
by changing lifestyles, strong income growth and favourable
demographic patterns, according to a KPMG report titled
`Consumer Markets in India: the next big thing.'
to the report, the annual growth of department stores
has been estimated at 24 per cent, which is faster than
overall retail; and supermarkets have taken an increased
share of general food and grocery trade over the last
Though affluence remains concentrated in urban centers
the report reveals that the sheer size and potential
of the rural segment has been underestimated. The Indian
market is evolving dynamically and there is hidden consumption
power in the low-income rural areas that offers considerable
opportunities for organised retailers in the kind of
rural territories that many companies have failed to
retail growth therein is expected to be double-digit
if infrastructure allows the consumer companies to reach
new markets at reasonable costs.
KPMG report further reveals that the Indian consumer
is emerging to be more trend-conscious with the development
of modern urban lifestyles.
reports adds that the food and beverages segment is
an emerging growth area while the gems and jewellery
market is a key emerging area with significant potential.