As the retail sector witnesses unprecedented growth, India has emerged among the most desirable retail destinations in the world. Even though modern trade is growing at 15 to 20% per annum, it has a low organised retail penetration of just 8%.
India’s economic growth and its demographic profile make the country a compelling business case for global retailers planning an international foray. The strong economic growth is attributed to high disposable incomes, growing middle-class influence, increasing individual wealth and the country’s large young population. The untapped rural sector and the lesser developed Tier II and Tier III cities provide ample opportunities for growth. The liberalisation of FDI in single-brand retail and the expected opening-up of FDI in multi-brand retail have generated significant interest among multinational retailers. PwC can be the ideal solutions provider in these exciting times and support you as you face global challenges.
Data and analytics are revolutionising businesses today. This is reflected in PwC’s 19th Annual Global CEO Survey (2016),2 which shows that 68% of the global CEOs see data and analytics technology as generating the greatest returns for stakeholder engagement.
Historically, retail companies the world over have focussed on increasing their store footprint for growth. Digital transformation gradually led to the proliferation of multiple channels and today, retailers have moved to a consumer-centric operating model which is solution-oriented and anticipatory to changes in consumer behavior.
PwC’s Pulse Survey underscored the determined intent of companies across industries to tap into the inevitable rural juggernaut fuelled by the rising income levels and middle-class aspirations as well as continued investments in infrastructure in rural and ‘rurban’ areas.
PwC and India Retail Forum are pleased to present our report titled ‘Are you Profitability Ready?’ that traces key trends and challenges influencing profitability for Indian retailers.