Retailigence

“Club of Knowledge Hunters”

Indian Retail Boom Continues even as Organized Jewelry Retail Slows

Posted by superstar23 on September 19, 2008

India’s retail jewelry sector was pushed down to rank fourth amongst India’s largest retail categories as organized retail jewelry slowed down, the 2009 edition of the India Retail Report said.

The Jewelry sector totaled Rs 694 billion ($15 billion), putting it behind the out-of-home food services (catering) category which came in third place at Rs 713 billion ($15.4 billion) with a 5.4 percent market share.

Food and grocery was the dominant category with a 59.5 percent share, valued at Rs 7,920 billion ($171 billion), followed by clothing and accessories with a 9.9 percent share at Rs 1,313 billion ($28.35 billion).

The report, which was released on Thursday at the India Retail Forum, said that the retail boom in India is expected to continue over the next few years with the size of the Indian retail market expected to be in excess of Rs 18,100 billion ($389.65 billion) by 2010. Of this, organized retail is likely to grow to more than Rs 2,300 billion ($49.51 billion), accounting for nearly 13 percent of the total market in 2010.

In jewelry retail, overall market growth was higher in 2007 at 9.6 percent compared to 9.2 percent the previous year though organized retail grew at a lower pace of 31 percent in 2007 relative to 2006.

In the organized retail segment, however, apparel and fashion accessories is the largest category with 38.1 percent of the market share followed by food and grocery accounting for 11.5 percent of the organized retail market, and footwear with a 9.9 percent market share.

Last year’s report had estimated that the retail market stood at Rs 13,300 billion ($287.2 billion) in 2007 with an annual growth of about 10.8 percent. Of this, the share of organized retail in 2007 was estimated to be only 5.9 percent at Rs 783 billion ($16.9 billion).

Continuing the frenetic pace of growth, organized retail in the modern retail segment grew at a rate of 42.4 percent in 2007. The report predicts this growth to continue over the next three years, especially as major global players and Indian corporate houses are seen entering the market.

source:- news room

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