India’s retail landscape has changed rapidly in recent years due to increasing disposable incomes and a growing number of nuclear families with evolving lifestyles.
The country is experiencing a shift towards organized retail. Organized players accounted for 9% of India’s overall retail trade in 2013. In the same year however, sales from modern retail formats saw slowing growth.
Rising costs, combined with infrastructure hurdles, have prompted retailers to reconsider expansion plans and forced brands to look for newer mediums to distribute their products, especially in areas where modern retail penetration remains low.
Backed by domestic as well as international investors, e-tailers such as Flipkart and Snapdeal have taken advantage, creating a ~Rs140 billion (US$2.3 billion) online retail industry.
Meanwhile, although much smaller in comparison to the e-tailing sector, the TV home shopping industry is taking great strides to leverage the massive reach of cable and satellite TV in India.