journal_january2015

THE
RURAL MARKETING
JOURNAL
JANUARY 2015
COVER STORY
Feature -
A Window into Rural Shopping
With rising incomes and aspirations, consumers are increasingly seeking convenience and choice. They wish to upgrade and
embrace the modern way of life. A modernised way of shopping is just one of the sought after changes.
Sapna Nair Purohit, New Delhi
More than 95 per cent of the Indian retail sector falls in the
category of 'unorganised sector'. According to a McKinsey
& Company report titled 'The Great Indian Bazaar', the
growth of organised retail is expected to be between 14 and
18 per cent of the total retail market this year. This article
attempts to explore the potential of rural India, as a market
for modern and corporatised retail, and look at the changes
and developments in the hinterland that retailers can
leverage.
Overview
The Indian retail sector accounts for 22 per cent of the gross
domestic product (GDP) and contributes to 8 per cent of
the total employment. The country's vast and dynamic
retail landscape presents a big opportunity to foreign
investors. A report published by AT Kearney hails India as
'the third most attractive retail market for global retailers
among the 30 largest emerging markets'.
According to management consulting firm, Technopak, the
Indian retail market is projected to grow at a compound
annual growth rate (CAGR) of 6 per cent to reach $865
billion by 2023. This will be driven by the sustained growth
of India's GDP at 6 per cent in the next decade. This growth
will, in turn, translate into increased demand for retail
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