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E-tailing to grow 10 times to $14bn in top 7 cities by 2019: Report

Knight Frank in
association with the Retailers Association of India has recently launched the
first edition of its flagship report on the retail sector, ‘Think India. Think Retail.’

According to
property consultant Knight Frank, the online retail market spend in India is
likely to jump more than 10 times to $14 billion in the next five years in the
seven major cities, namely Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru,
Hyderabad and Pune.

Knight Frank in
association with the Retailers Association of India has recently launched the
first edition of its flagship report on the retail sector, ‘Think India. Think Retail.’

According to
property consultant Knight Frank, the online retail market spend in India is
likely to jump more than 10 times to $14 billion in the next five years in the
seven major cities, namely Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru,
Hyderabad and Pune.

In a report, Knight
Frank India said, “The total retail spending in the top seven cities of
India is projected to more than double from $59.8 billion in 2014 to $127.5
billion in 2019.”

“E-tail
market spending in India’s top seven cities is likely to grow more than 10
times from $1.2 billion in 2014 to $14 billion in 2019, resulting in an annual
growth rate of 64 percent,” the report said.

While the share
of E-tail is expected to jump by more than five times from 2% in 2014 to 11% in
2019, the share of brick and mortar modern retail is expected to fall from 17%
to 13% during the same period.

According to the
report, the online retail segment will gain primarily at the expense of brick
and mortar modern retail, but it will attract consumers from non-modern retail
too. Non-modern retail’s share in the total retail spending is estimated to
fall from 81% in 2014 to 76% by 2019.

Knight
Frank
India CMD Shishir Baijal said, “Over the last decade, the
concept of shopping has undergone a sea change in terms of format and consumer
buying behavior, ushering in a revolution across the country.”

With an ever
expanding domestic market and a forecast growth rate of 15 percent a year,
Baijal said the Indian retailing scene seems extremely attractive for
stakeholders and investors alike.

“The e-commerce
industry is booming like never before and this coupled with high disposable
incomes have led to a spurt in the internet culture that aims to change the
dynamics of the Brick & Mortar modern retail segment,” Baijal said.

 

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