Retail market set to double in 3 years to $30 billion
The organised retail market is set to double in the next three years to $30 billion, says a FICCI-Ernst & Young report on retail sector.
By TNN |
NEW DELHI: The organised retail market is set to double in the next three years to $30 billion, says a FICCI-Ernst & Young report on retail sector. Also, according to the report, the organised sector, which today accounts for a meagre 5% of the total retail market may increase its share to 30% in the next 10 years.
“Without a strong supply chain, it would be impossible to have a successful retail venture. The key to efficiency in today’s supply chain is the adoption of standards that can be benchmarked with global best practices,” said Bharti Enterprises managing director Rajan Mittal, while releasing the report ‘Winning with intelligent supply chains’.
The report highlights several challenges facing retail in India. It cites lack of high quality road networks, power shortages and insufficient storage spaces as major constraints for the development of an efficient supply chain. “With close to 80% of the goods being transported through roads, we need a much more robust road network,” said Mr Mittal, who also heads FICCI Retail committee.
He is spearheading his company’s retail JV with world’s largest retailer Wal-Mart. Bharti would launch its first retail store in the first quarter next year and its first cash and carry store six months later.
The report also expressed apprehensions that rising realty prices may render a few retail business models unviable. The organised retail may be in its infancy, but the FICCI-Ernst & Young report suggests that the industry loses to the tune of $120-130 million every year in frauds, thefts, shop lifting, vendor frauds or inaccurate supervision.
Manpower crunch is another highlight of the report that says there is a huge demand-supply gap for experts in supply chain and store management areas.
“Without a strong supply chain, it would be impossible to have a successful retail venture. The key to efficiency in today’s supply chain is the adoption of standards that can be benchmarked with global best practices,” said Bharti Enterprises managing director Rajan Mittal, while releasing the report ‘Winning with intelligent supply chains’.
The report highlights several challenges facing retail in India. It cites lack of high quality road networks, power shortages and insufficient storage spaces as major constraints for the development of an efficient supply chain. “With close to 80% of the goods being transported through roads, we need a much more robust road network,” said Mr Mittal, who also heads FICCI Retail committee.
He is spearheading his company’s retail JV with world’s largest retailer Wal-Mart. Bharti would launch its first retail store in the first quarter next year and its first cash and carry store six months later.
The report also expressed apprehensions that rising realty prices may render a few retail business models unviable. The organised retail may be in its infancy, but the FICCI-Ernst & Young report suggests that the industry loses to the tune of $120-130 million every year in frauds, thefts, shop lifting, vendor frauds or inaccurate supervision.
Manpower crunch is another highlight of the report that says there is a huge demand-supply gap for experts in supply chain and store management areas.
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