April 20, 2024
Global Organized Retail

Organized Retail Market Poised for Growth Due To Rising Urbanization and Increasing Disposable Income

The organized retail market deals in organized retailing of products and services. This includes the distribution of goods and management of inventory through retail outlets such as supermarkets and department stores. Organized retail provides consumers with a wide range of options under one roof along with value-added services like home delivery, trial rooms, interactive digital interfaces, and loyalty programs. The growing urban population, rising disposable income, and changing lifestyles and shopping preferences of consumers have boosted the growth of the organized retail sector in recent years.

The Global Organized Retail Market Size Is Estimated To Be Valued At Us$ 28.34 Bn In 2024 And Is Expected To Exhibit A Cagr Of 4.2% Over The Forecast Period 2024-2031.

Key Takeaways

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. Key players are focusing on strategies such as expanding product portfolios, enhancing customer experience through technological innovations, and strengthening their supply chain networks.

The organized retail market offers several opportunities such as growing e-commerce sales, rural expansion, improving infrastructure, and entry of global brands. E-commerce penetration is increasing rapidly in developing nations, enabling retailers to reach a larger customer base. Meanwhile, investments in rural infrastructure and development of integrated townships provide scope for retailers to tap the untapped rural market. Further, entry of global brands enhances competition and brings new retail formats.

Globally, the organized retail market is witnessing significant expansion. Countries like India and China exhibit high sales growth prospects attributed to rising disposable incomes and growing middle-class populations. Southeast Asian countries are also emerging as lucrative markets. Players are making focused investments and forming partnerships to strengthen their foothold in high-potential international markets.

Market drivers

Rising urbanization is one of the key drivers of growth for the organized retail market. With increasing urbanization, nuclear families are rising, and customers have less time for traditional shopping. This drives the demand for modern retail formats like supermarkets and hypermarkets that offer a one-stop solution. Furthermore, higher disposable incomes of urban households enhance their spending on quality branded products available at organized retail stores.

PEST Analysis

Political: The government’s focus on improving infrastructure like roads, logistics and retail zones promotes the growth of organized retail sector. policies related to FDI regulations and ease of doing business also affect the sector.

Economic: Strong economic growth, rising incomes, urbanization and increasing consumer spending fuel the demand for organized retail formats. Lower inflation boosts consumer confidence and their purchasing power.

Social: Change in lifestyle and busy schedules prompt people opt for one-stop shopping experience offered by organized retail chains. Growing brand consciousness and preference for variety also support their popularity.

Technological: Digital and online channels adopted by retailers help improve shopping experiences of customers. Technologies like AI and analytics enable personalized services and efficient supply chain management.

As per value, the retail market in India is concentrated in metros and tier I cities owing to higher spending power and mall culture. The top 8 cities – Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Ahmedabad and Pune account for over 60% of the total value.

Southeast Asian countries are emerging as the fastest growing region for the organized retail market led by nations like Indonesia, Vietnam and Philippines. Rising middle class, young demographics and development of organized retail infrastructure present lucrative opportunities for retailers aiming international expansion in the region.

What are the key data covered in this Organized Retail Market report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the Organized Retail Market’s growth between 2024 and 2031.

:- Accurate calculation of the size of the Organized Retail Market and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behavior

:- Organized Retail Market Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of Organized Retail Market vendors

FAQ’s

Q.1 What are the main factors influencing the Organized Retail market?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top Organized Retail Market companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the Organized Retail market’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?

*Note:

  1. Source: CoherentMI, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it