• Sky-rocketing consumption rates,
• Urbanizing population, and
• The emergence of the middle class.The Indian retail business has seen Foreign Direct Investment (FDI) inflows of around US$ 1.04 billion between April 2000 and June 2017, according to the Department of Industrial Policies and Promotion. With the need for consumer goods rising daily, especially in the electronics and home appliances sector, there is a jump in new entrants investing in the Indian retail industry.
And government initiatives to improve the retail industry in India have led to many positive policy changes. The FDI rules in food processing have been changed to allow e-commerce companies and foreign retailers to sell ‘Made in India’ products. The government is also allowing 100% FDI in online retail of goods and services.
Road Ahead
With the expansion of e-commerce, choice of products, especially in terms of getting the lowest price for an item is greatly benefitting the consumer. Touted as the biggest revolution of the retail industry, e-commerce can teach brick-and-mortar retailers how to leverage digital channels to improve reach in tier-2 and tier-3 cities while reducing costs at the same time.
With the two facets working together, both the industry and the consumer will benefit in the long run.
