It is indeed good to note that the Indian economy is currently one of the fastest-growing economies in the world. It is also worth noting that it is expected to be one of the top three economies in the world in the next 10 to 15 years. All these are clear indications that we are headed toward one of the most prosperous times in the years to come with unlimited opportunities across all sectors.
In case you are a business owner based in India, these are times when you need to tap into the many opportunities that are lined up for the future. Amidst all the boom, the retail industry is one of the forerunners and has emerged as the most lucrative sector.
Among the many reasons that have driven rapid growth in India, technology, without any doubt, is at the forefront. Today and the booming e-commerce sector in India, rapid digitisation in the entire Indian retail industry has brought in revolutionary changes that are driving growth like never before. Therefore, if you are a small retail business owner, it is time that you look for the latest merchant web platforms that could transport your small business to a whole new level. However, before we get into further details, let us understand why it is now the best time for the Indian retail industry.
Scope of India’s Retail Industry
Some Vital Statistics
India’s retail market has undergone a significant transformation and is set to grow exponentially in the coming 10 years. The Indian e-commerce industry will be worth $1.75 trillion by 2026. Though the sector was progressing until 2019, it witnessed a sudden downfall in 2020 due to the COVID-19 pandemic. Research shows that the estimated rate of employment in the Indian retail sector will be approximately 45–50 million by 2021.
E-commerce is now a big part of the retail market in the country. It has experienced massive growth in very little time.
As a result, the market is expected to reach a whopping $1.75 trillion mark by the end of 2026. What is also impressive is that the e-commerce industry in India, which was worth $30 billion in 2019, is expected to cross 200 billion in the next 5 years, with 30% growth.
The Indian retail market has seen immense growth over the past 10 years as it was valued at around 795 billion USD in 2020. What you would be all the happier to know is that it now stands on its way toward crossing the 1 trillion dollar mark with projections. It is estimated that this number would be reached within the next 10 years! Thus, the retail market in India is all set to explode in the time to come.
If you are a part of this sector, you need to take full advantage of the rapid growth. But to do so, you need to closely monitor the latest industry trends.
And you need to seriously look for the latest digital solutions for small business owners. However, before we go further, let us try and understand the main drivers that will drive the massive growth which will happen are:
The Retail Growth Drivers
1. Rising Household Incomes
One fundamental growth driver for the growth of the Indian retail industry has been the fact that the household income in the country has increased three times. Studies reveal that the household income grew from USD 6,393 Billion to USD 18,448 in 2020. Consequently, consumption and spending have grown hugely, leading to a surge in the Indian retail industry.
2. Online Spending Has Increased Dramatically
Certain studies about expenditure claim that online spending will witness a major surge in the next few years. In fact, up to 35% of the entire retail sales will be made online through e-commerce stores. The number of people buying online will also grow from 90 million to a whopping 350 million in the next 5 years.
If you are a retail business owner, it means that your business has to gear up to meet the digital changes needed to tap into the projected growth. It is imperative for your business to avail of the full digital solutions-sell online, manage accounts, etc.
3. Growth in the Indian Rural Consumption
Much of the total consumption in India depends on the rural consumption levels. The good news is that by the year 2030, there will be 4.3 growth in per capita consumption. With the projected rural consumption growth, the retail industry is bound to grow. Hence, if you are a rural business owner, there are good reasons for you to be delighted.
4. Growth in New Households Purchased by Millennials
The immediate reason you shift your retail business to the digital mode is that India has always had a high young population who uses the latest web applications. The country is set to introduce 90 million new millennial households born after the Indian liberalisation in the early 90s. Hence, it is a critical reason you have digital business solutions for small business owners that these new households would readily adapt to.
Along with the growth drivers mentioned above, the following are some additional factors that would contribute to the Indian retail industry growth.
5. Robust Demand
Owing to the many opportunities being created, India is likely to have the best and reliable economic growth in the years to come. Due to this economic growth, the demand would have robust growth and lead to the retail industry boom. Therefore, you must be ready with a suitable business model to make the most of the opportunities created due to this growth.
6. Policy Support
As a small business owner, you would realise that the Good and Services Tax (GST) implementation was a revolutionary step forward. In line with such policies, we can expect that the economic policies would further support the growth. All this would lead to a significant increase in the retail industry too. You would also realise that as a nation too, we are moving towards digitisation. Thus, you need to use the latest and the best digital accounting and ledger apps to cater to the latest statutory needs.
7. Innovative Financing Being Made Available to Consumers
One trend which has emerged in the Indian retail industry is that consumers can now avail various innovative financing processes to boost consumption. To ensure that your business stays in trend, you need to use the latest accounting app for merchants, which will enable you to do the same.
8. Increasing Investments Flowing into the Retail Sector
Owing to the many opportunities that the retail sector offers, more and more investments are flowing. It is impressive to note that in 2019 about more than a billion people attracted private equity investment. The figure would only increase further in the time to come.
To conclude, we can say that the Indian retail industry is all set to boom soon. However, for your retail business to be lucrative, you must adopt the latest and the most innovative digital solutions.
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Q. What type of digital business solutions would be ideal now?
Ans. To ensure that you make the most of the current business opportunities, you should look for a merchant web platform that would enable your business to extend credit to your customers.
Q. What to ensure while choosing digital app solutions?
Ans. The first and foremost consideration while choosing accounting apps for merchants is the safety of the information stored in these apps. The reason is that it often stores some sensitive information about your business and also your customers.
Q. Is it necessary to avail the staff app solutions for businesses?
Ans. Yes, very much so. The reason is that the staff records can be maintained much more manageably, and it consumes less time. Additionally, it ensures that your staff is better motivated and can concentrate on business development activities, which makes them more productive for your business.
Q. What to ensure when choosing staff-related apps?
Ans. You should ensure that these are easy to use. Therefore, you need to opt for the very user-friendly ones.