Organized Retail Market Set for Robust Growth due to Rising Digital Adoption

Organized Retail Market Set for Robust Growth due to Rising Digital Adoption

The organized retail market refers to the distribution of goods and products through modes like hypermarkets, supermarkets and e-commerce which provide customers with multiple varieties under one roof along with standardized facilities like payment options, customer service and ambience. Organized retail provides customers the ease of wide assortment, multiple brands and price discovery. Products sold through organized retail include clothing and apparels, consumer electronics, food and beverages, furniture and furnishings among others.

Organized Retail Market has gained significant traction as it offers consumers convenience, choice, ambience and higher standards of services.

The Global organized retail market 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. Rapid digitization and growing internet and smartphone penetration has enabled key players like Amazon and Flipkart to strengthen their presence. The e-commerce channel is witnessing strong growth driven by increasing preference of online shopping for attributes like discounts, larger assortment and delivery convenience. Major retail chains are expanding their footprint globally to cater to international demand for Western brands and attain scale. Countries across Southeast Asia and Middle East present significant prospects, with retailers setting up joint ventures or acquiring domestic chains.

Market Drivers: 

Rising digital and smartphone adoption is a key driver facilitating the growth of e-commerce organized retail in India. Customers especially millennials are increasingly preferring online shopping for its convenience. Majors e-commerce players are investing heavily in logistics, infrastructure and customer experience to strengthen their value proposition. The digital payments revolution is also supporting online payments and the growth of digital retail commerce.

Market Restraint:

A dominant portion of retail in India is still unorganized. Customers in certain regions and categories still prefer traditional local retailers and shops owing to the trust established over years. This act as a restraint for organized retailers from completely dominating the market. Also, failures of certain big retail projects in the past have made both retailers and customers wary and cautious about expansion. High prices of certain standardized products in organized retail vs unorganized is also a deterrent for some customers.

Segment Analysis 

The apparel and footwear segment dominates the organized retail market currently. Within this segment, fashion apparel is the fastest growing sub-segment due to the increased spending capacity of consumers and growing fashion consciousness. Customers have become brand conscious and prefer branded clothes, which has contributed to the growth of this sub-segment.

The food and grocery segment has emerged as another major segment driven by the busy lifestyles of people and increased preference for quality and hygienic packaged products. Supermarket and hypermarket chains have established themselves as one-stop shops for weekly household needs. Availability of a wide range of products under one roof along with discounts and loyalty programs have made them popular destinations for grocery shopping.

Global Analysis

The Asia Pacific region currently holds the largest share in the organized retail market owing to the rapid growth of retail industry in populous countries like India and China. India is the fastest growing regional market attributable to favorable demographics, rising income levels and expanding middle-class population. Evolving consumer habits and increasing brand consciousness especially among young audiences are driving retail growth in India. North America is also a prominent retail market supported by high consumer spending power and presence of major global players.

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's growth between 2024 and 2031.

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

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

:- Organized Retail 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 vendors

FAQ’s

Q.1 What are the main factors influencing the Organized Retail?

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 companies compare in terms of sales, revenue, and prices?

Q.5 Which businesses serve as the Organized Retail’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?

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About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)