Retailing in India

The Economist writes about the growth:

Only 4% of India’s shops occupy a space of more than 500 square feet (46 square metres). Even in Delhi, some upmarket shopping centres, such as Khan Market, are clusters of tiny shops. In grocery shops boys perch precariously on ladders to fetch jars from remote crannies. In the bookshops browsers brush bottoms as they squeeze past each other in crowded aisles. Some of the poshest clothes shops are reached up narrow, twisting staircases.

Most Indian shops belong to what is known, quite accurately, as the unorganised sectorsmall, family-owned shops surviving on unpaid labour and, often, free land for a small stall. Organised retailing accounts for only 2-3% of the total, and of that, 96% is in the ten biggest cities, and 86% in the biggest six. However, organised retailing is growing at 18-20% a year and inspiring a rush of property development. Shopping malls are springing up in every big town: some 450 are at various stages of development.

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.