Organised retail in India will grow three-times over the next five years to reach a size of USD 180 billion and the overall retail industry is expected to double to USD 1 trillion by 2020, says a report.
“Modern trade (organised retail) is expected to grow three-time to USD 180 billion by 2020 from USD 60 billion in 2015,” said the report by global management consulting firm BCG released at the annual retail summit here today.
The overall retail industry is also expected to double to USD 1 trillion by 2020 from the present USD 600 billion, it said and attributed the growth to higher income, urbanisation and attitudinal shifts.
BCG said consumption levels, too, would increase led by the rising number of nuclear families, which today stand at 20 crore, resulting in a 20-50 per cent higher consumption per capita spend.
However, e-commerce sales would be faster than the modern trade in the next five years, with the online format expecting to clock sales of USD 60-70 billion, a four-fold jump from their current value.
The number of Internet users is expected to increase three times to 60 crore by 2020 from 20 crore in 2014, it said and noted that the increased number of smartphone users will aid the e-commerce sector.
The report envisaged a massive increase in smartphone users, from 120-140 million in 2014 to 600-700 million by 2020.