Indian Retailing Industry, which is currently worth Rs.30 lakh crore, is bifurcated into two segments: Organized and Unorganized retailing. Having been dominated by the unorganized segment, the unorganized retail accounted for about 92% of the total retail revenue, while organized constituted a miniscule of 8% of the total retailing pie. Albeit largely unorganized, the Indian retail sector has witnessed double-digit growth rate for the last five years. Food & grocery and clothing & footwear segment are the main revenue drivers in the Indian retailing, together accounting for approximately ~69% of the market share in FY13. The growth in the sector will be driven by factors like favourable demographics, rising urbanization and income levels, changing consumerism, rising nuclear families and female working population, growing use of plastic money and shift in the Indian Consumerism from necessities to luxury. CARE Research expects the rising Private Final Consumption Expenditure (PFCE) will play an instrumental role in driving the growth of Indian retailing. The key challenges for the sector are rental issues, taxation hurdles etc.
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