India Retail Market Size 2018 - Organised Vs Unorganised

Indian Retail Market Size has been super lucrative for brands across the globe. At $700 billion the India retail market is under penetrated by a lot of products and services. Unlike developed markets, the Indian retail market size is dominated with unorganised Mom and Pop stores serving the nation at large. Of late, eCommerce companies have made major investments in the country to cater to various categories. With Walmart buying a controlling stake in India’s leading etailer, Flipkart, the India retail market size should expect a boom and consumers should soon see products from various categories delivered at their doorstep.

The focus of Flipkart, Amazon and PayTm now moves to categories including the fast moving Groceries, Lifestyle etc. However, this game needs to be played differently all together. The competition to eCommerce is not the organised trade players but the unorganised kirana shops which offer unmatched convenience, credit and delivery basis a lasting relationship.

Indian Retail Market Size 2018 – Organised Vs Unorganised

Below is how the India Retail Market Size stack up in numbers.

Indian Retail Market Size – Organised Vs Unorganised (In $ Billion)

Market Type 2014 2015 2016 2017 2018*
Total 501.69 556.76 619.39 694 777.14
Organised 39.26 46.82 55.84 66.6 79.43
Unorganised 462.43 509.94 563.55 627.4 697.71

*2018 numbers are estimates; Source: Technopak

India Retail Market Size 2018 - Organised Vs Unorganised

The unorganised retail market controls around 90% of entire retailing. Only 10% of the market is served by organised trade players.

India Retail Market Size – Organised Vs Unorganised (In $ Billion) – In %

Market Type 2014 2015 2016 2017 2018
Organised 8% 8% 9% 10% 10%
Unorganised 92% 92% 91% 90% 90%
Total 100% 100% 100% 100% 100%

*2018 numbers are estimates.      Source: Technopak

Indian Retail Market Size - Organised Vs Unorganised

India Retail Market Size 2018 – Growth in Percentage

Not only the unorganised market dominates but is also growing much faster, almost double the rate of the organised trade. The 2018 numbers are estimates, however still the unorganised market has been clocking in higher growth all these years. This is despite global giants pumping in money from the last 5 years.

India Retail Market Size – Organised Vs Unorganised (Year on Year Growth)

Year on Year Growth Market Type 2015 2016 2017 2018
Organised 19% 19% 19% 19%
Unorganised 10% 11% 11% 11%

*2018 numbers are estimates.      Source: Technopak

Many retailers, both global and homegrown, have tried their hands at the country but have failed miserably. Few examples – France’s Carrefour has come and gone, Germany’s Metro has only 25 stores, Reliance, Tatas have entered retail but haven’t been able to make a significant difference in the dominance of Mom and Pop stores.

Summarising the numbers below:

Indian Retail Market Size 2018 (3)

Read More – Flipkart planned to buy Snapdeal, but couldn’t get through

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