Online retail market spending is likely to jump more than 10 times to USD 14 billion in the next five years in the seven major cities, according to property consultant Knight Frank.
The seven cities are Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad and Pune.
“The total retail spending in the top seven cities of India is projected to more than double from Rs 3,586 billion (USD 59.8 billion) in 2014 to Rs 7,650 billion (USD 127.5 billion) in 2019,” Knight Frank India said in a report.
Knight Frank in association with the Retailers Association of India today launched the first edition of its flagship report on the retail sector, ‘Think India. Think Retail’.
“E-tail market spending in Indias top seven cities is likely to grow more than 10 times from Rs 72 billion (USD 1.2 billion) in 2014 to Rs 839 billion (USD 14 billion) in 2019, resulting in an annual growth rate of 64 per cent,” the report said.
While the share of E-tail is expected to jump by more than five times from 2 per cent in 2014 to 11 per cent in 2019, the share of brick and mortar modern retail is expected to fall from 17 per cent to 13 per cent during the same period.
The consultant noted that e-tail 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 per cent in 2014 to 76 per cent by 2019.
Knight Frank India CMD Shishir Baijal said: “Over the last decade, theÂ 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 per cent a year, he 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 added.