Retail sector can support existence of various formats: Experts
New Delhi: The country's retail sector provides enough opportunity for supporting both absorption of new players as well as expansion of the existing ones, experts have said.
In order to compete with the organised retail players of the world, retailers in the country need to adapt themselves to the new market dynamics and provide proper corporate governance and transparency, they stated.
"The opportunity in retail is huge for existence of various retail formats. Understanding and targeting the right consumer is of essence,"multi-brand retail chain V-Mart CMD Lalit Agarwal said at a round-table on retail here.
Agarwal further added that about 50 percent of consumption in this country is driven by the middle class. This expected to rise to 60-63 percent within 3 years--which reflects the sheer size of the retail industry in India.
The current estimated value of the Indian retail sector is about 500 billion USD and is pegged to reach 1.3 trillion USD by 2020.
Regarding funding opportunities, Resurgent India Vice President Rajesh Bang said: "There is no dearth of funds for the retail sector. There is enough opportunity in the market to support absorption of new players and expansion of existing ones".
"The adoption of IT systems have helped traditional retailers retain their customers. The sector is now focusing on IT optimisation and effectiveness," leading provider of specialised retail management solutions Ginesys CEO Prashant Lohia said.
The Indian retail sector accounts for over 20 percent of the country's gross domestic product (GDP) and contributes 8 percent to total employment.