by The organized retail sector, which includes malls, shops and retail outlets, has seen substantial growth over the past decade driven by rising disposable incomes, urbanization and changing consumer behavior. Organized retail outlets provide customers with a wider variety of products under one roof along with better shopping experience and ambience compared to traditional small shops. Products ranging from groceries, clothing, electronics, books and more can be purchased conveniently from these retail stores. Many outlets also offer loyalty programs and discounts which attract more customers. The global organized retail market thrives on consumer desire for a comfortable and hassle-free shopping experience along with attractive prices.
The global Organized Retail Market is estimated to be valued at US$ 28.34 Bn in 2023 and is expected to exhibit a CAGR of 4.2% over the forecast period 2023-2030, as highlighted in a new report published by CoherentMI.
Market Key Trends:
One of the major trends driving growth in the organized retail sector is the rising popularity of digital and mobile commerce. Customers now extensively research products online and spend significant time browsing retailer websites and apps on their smartphones before making purchases. This has encouraged retailers to invest heavily in improving their online presence, rolling out mobile shopping applications and offering seamless omni-channel functionality. Modern consumers expect a consistentexperience across both online and physical retail touchpoints. The integration of digital solutions is enabling organized retailers to engage customers in new ways and drive higher sales. This shift towards online and mobile platforms will continue shaping the organized retail market dynamics over the coming years.
Porter’s Analysis:
Threat of new entrants: Medium-high setup costs for physical stores pose a barrier for new entrants. However, the growth of e-commerce has lowered barriers.
Bargaining power of buyers: High – buyers have a large selection of retailers both online and offline to choose from. Brand promotions and discounts keep buyers’ bargaining power high.
Bargaining power of suppliers: Medium – established retailers wield strong influence on suppliers due to large volumes, but rising private labels curb supplier power.
Threat of new substitutes: Medium – though alternate online shopping remains a threat, organized retail’s experience and fulfillment model make it difficult to replace fully.
Competitive rivalry: Intense – India’s organized retail market is fragmented with no clear leader and many regional and global players compete on pricing, product variety, and customer experience.
Organized Retail Market Segmentation:
- Global Organized Retail Market, By Product Type
- Electric
- Food
- Consumer
- Other
- Global Organized Retail Market, By Application
- Personal
- Commercial
Key Takeaways:
The global Organized Retail Market Size is expected to witness high growth. The global Organized Retail Market is estimated to be valued at US$ 28.34 Bn in 2023 and is expected to exhibit a CAGR of 4.2% over the forecast period 2023-2030.
Asia Pacific region dominated the market in 2022 backed by rapid expansion of retailers in major economies like India and China. The region will continue its lead through the forecast period supported by rising spending power.
Key players operating in the organized retail market are Amazon, Apple, eBay, Flipkart, Future Group, Landmark Group, Pantaloons Retail, Reliance Retail, Shoppers Stop, Tata Group, Puma. These players are focused on adopting omnichannel strategies and leveraging technology to enhance customer experience. The competitive environment will force retailers to increase investments in areas like private labels, customer analytics and supply chain to gain shares.
*Note:
1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
