Global management consultancy firm McKinsey & Co. on Thursday released a report on India’s modern retail business. The report, called “The Great Indian Bazaar—Organized Retail Comes of Age in India”, outlines the country’s emerging, yet competitive retail market.
It talks about innovative steps retailers need to take to win in a complex country like India. Also, the report discusses the evolving Indian consumer. With an expanding economy, the country’s overall retail sector will become a $450 billion (Rs20.85 trillion) business by 2015, which is almost comparable to Italy’s current market size of $462 billion (among the world’s top 10 retail markets) and larger than Brazil’s current retail market size of $258 billion.
“The game here has just begun,” says the report, referring to India’s modern retail business which currently accounts for only about 5% of the country’s annual retail business.
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Along the way, the modern retail business will create about 1.6 million jobs in the next five years, McKinsey says. Modern retailers will not only create employment opportunities but also would help raise India’s overall economic productivity and could also result in lowering prices of goods.