Grocery stores in Lucknow are some of the few that managed to avoid the recessive effects of the pandemic. The retail industry in India has evolved as one of the most dynamic and fast-paced sectors as a result of the entry of several new enterprises. It accounts for about 10% of the country's gross domestic product (GDP) and over 8% of employment. India is the fifth-largest shopping destination in the world.
India was ranked 73rd in UNCTAD's 2019 Business-to-Consumer (B2C) E-commerce Index. The country is the fifth largest retail destination in the world and ranks 63rd on the World Bank's Doing Business 2020 index.
It came in 16th on the FDI Confidence Index (after the USA, Canada, Germany, United Kingdom, China, Japan, France, Australia, Switzerland, and Italy). Kearney Research predicts that the Indian retail sector will grow at a slower 9 percent annual pace from 2019 to 2030, growing from US$ 779 billion in 2019 to US$ 1,407 billion in 2026 and more than US$ 1.8 trillion in 2030.
In FY20, offline retailers in India, commonly referred to as brick and mortar (B&M) shops, were expected to increase their sales by Rs 10,000-12,000 crore (US$ 1.39-2.77 billion). India's direct selling industry would be valued at US$ 2.14 billion in 2021.
The Retailers Association of India (RAI) reports that the retail sector accounted for 93 percent of pre-COVID sales in February 2021; consumer durables and quick service restaurants (QSR) both increased by 15% and 18%, respectively.
After a remarkable 19 percent decline in the January-March 2020 quarter, the FMCG industry showed signs of recovery in the July-September 2020 quarter, expanding by 1.6 percent year over year. The growth of the fast-moving consumer goods (FMCG) business also reflected the macroeconomic climate improving as a consequence of the economy's openness and the removal of restrictive measures. OkCredit is a financial accounting service that helps shop owners and small business owners to tackle their finances and manage their expenditures. It is a great solution to all your financial needs.
E-commerce has been a godsend during the pandemic, and according to a report by Bain & Company and Flipkart titled 'How India Shops Online 2021,' the e-commerce company is expected to reach US$ 120-140 billion by FY26, rising at a pace of about 25%-30% per year for the next five years. India is the third-largest market for e-commerce (only behind China, the US). By 2030, it is anticipated that new-generation logistics companies would move 2.5 billion Direct-to-Consumer (D2C) products. In the next decade, the popularity of online used automotive sales is expected to more than double. Despite the pandemic onslaught, Amazon, Flipkart, and numerous vertical firms sold almost US$ 9 billion worth of merchandise during the 2020 festival season.
Developments and Future plans for Retail
- Retail technology enterprises in India are expanding. These businesses offer services such as digital ledgers, inventory management, payment systems, and logistics and fulfilment solutions. In the first nine months of 2021, investors invested US$ 843 million in 200 small and mid-sized retail technology firms, a 260 percent increase over the same time in 2020.
- The Department for the Promotion of Industry and Internal Trade announced the development of a regulatory compliance portal to expedite compliance processes between industries and the government.
- Retail sales in India increased by 14% in October 2021.
- GoKwik, a New Delhi-based e-commerce enabler, raised US$ 5.5 million from Matrix Partners India in September 2021. Dukaan, another firm that supports businesses in digitising their operations, received a US$ 11 million investment headed by 640 Oxford Ventures.
- According to the Department for Promotion of Industry and Internal Trade, between April 2000 and June 2021, India's retail trade industry received US$ 3.61 billion in foreign direct investment (FDI) equity inflows. (DPIIT).
- Due to rising demand for consumer items across a range of sectors, including consumer electronics and home appliances, various firms have made significant investments in the Indian retail sector.
- India's retail sector is estimated to receive US$ 6.2 billion in investment from private equity and venture capital companies by 2020.
- According to PGA Labs and Knowledge Capital study, investors invested US$ 1.4 billion in direct-to-consumer (D2C) businesses between 2014 and 2020. The sector anticipated spending US$ 417 million in 2020.
- Reliance announced intentions to establish convenience stores run by 7-Eleven Inc. in India in October 2021.
- Realme will expand its footprint in India by opening 100 more unique stores.
- Reliance Retail introduced Fresh Pik, a new gourmet food experience in India, to expand its grocery industry into the ultra-premium market.
- Plum, the direct-to-consumer beauty and personal care company, announced intentions in October 2021 to expand its customer base by building >50 physical shops throughout India (by 2023).
- Flipkart engaged 23,000 individuals in India between March and May 2021 in various supply chain jobs, including delivery executives, to bolster the supply chain.
Top Grocery Stores in Lucknow
Grocery stores in Lucknow use online services to advertise their product offerings. E-commerce is exploding in popularity throughout the country. Customers benefit from an ever-expanding assortment of products at the lowest costs available. Perhaps the biggest development in the retail industry has been the rise of e-commerce, and this trend is expected to continue in the future years. Retailers may choose to adopt digital retail channels (E-commerce) in order to save money on real estate while growing their customer base in tier II and tier III cities.
India's e-commerce market is forecast to reach US$ 350 billion by 2030, up from an estimated US$ 55 billion in 2021, thanks to the country's expanding internet population. By 2020, digital wallets will be the most common method of online payment (40 percent), followed by credit cards (15 percent) and debit cards (15 percent) (15 percent ). (15%). By 2024, it is expected that online retail penetration would reach 10.7 percent, up from 4.7 percent in 2019.
Nonetheless, the industry's long-term outlook seems to be optimistic, boosted by rising affluence, favourable demographics, foreign entry, and urbanisation.
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Q. How many Grocery Stores are there in India?
Ans. In 2021, India had over 12.8 million retail food stores. This group featured both conventional and new stores. While the number of retailers has increased steadily since 2013, the increase has been mostly in conventional businesses.
Q. Which is the best supermarket in India?
Ans. Reliance Retail is India's largest supermarket chain in terms of both sales and footprint.
Q. What is considered a Kirana Store?
Ans. Kirana stores are tiny neighbourhood businesses in India that are also known as corner stores, convenience stores, or C-stores. These tiny enterprises offer a variety of food items and everyday essentials such as toiletries, hygiene products and snacks.
Q. What is the profit margin for a Kirana store?
Ans. Profit margins for an ordinary Kirana shop vary between 5% and 20%. While a small Kirana shop earns between 4% and 5%, larger grocery store brands earn more than 5%. It's also lucrative since launching a Kirana store is not prohibitively expensive.
Q. How will be the profit margins for Kirana Stores in the future?
Ans. Consumers are increasingly purchasing online, in supermarkets, and in bigger contemporary shops, and as a consequence, Kirana locations are losing customers. By 2021, the percentage of commerce controlled by Kirana shops was predicted to decline to 75% from 88 percent it was at previously.
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