The Indian retail sector has grown phenomenally in the last ten years, in terms of market size, employment and stock keeping units (SKU). A detailed study by the National Association of Software and Service Companies (NASSCOM) in partnership with Technopak has revealed that the retail sector has been extraordinarily resilient through the pandemic. The sector willingly and openly adopted technology as part of its response strategies to the pandemic. It is all set to grow by $700 bn in the next decade, to become a $1.5 trillion sector in terms of market size, and will create 25 million jobs.
Retail 4.0 is in sight, and will be led by a blend of virtual / online and physical retail formats, with technology playing a significant role.
The survey reveals that the retail market has grown three times in size in the last 30 years and has contributed $800 bn to the country’s GDP in the financial year 2019-20. It accounts for eight per cent of the total workforce, employing over 35 million.
Before the pandemic struck, the Indian retail sector had been through three eras or phases of evolution. Retail 1.0, upto 1999, Retail 2.0 that lasted from 2000 to 2006, and Retail 3.0 that spanned 2007 to 2020.
The study indicates that Retail 4.0, will be a combination of the offline and online retail era, and will see the convention and online modes converging into a tech-driven, digital ecosystem
The combination of offline and online models will lead to accelerated sales worth about $640 bnby 2030, which will account for 90 per cent of the addition to the retail market size. This will also add about 12 million jobs, that is, about 50 per cent of the new jobs created in the space.
India’s share of online-led exports, globally, will increase to 8.9 per cent. This offline+online mode of business will account for 37 per cent of the retail sector’s total tax contribution.