Rapid economic growth, increasing disposable incomes and lavish lifestyle habits are someof the factors that would see the retail format expand exponentially in the next five years and attract a staggering investment of USD 410 bn by 2011 into this sector, concludes a study carried out by the internationally reputed consulting firm PricewaterhouseCoopers (PwC), reports PTI.
Half of this US$410 Bn. in investment would be directed to food-related retail while the remaining share would be allocated to non-food retail, says the study entitled ‘From Sao Paulo to Shanghai – New Consumer Dynamics: The Impact on Modern Retailing’..
The majority of this estimated US$ 410 Bb. investment in retail will be directed toward the two most popular retail formats: hypermarkets and supermarkets,” said PwC.
PwC has pointed out that a growing population, a youthful workforce and soaring consumer confidence are “solid arguments for long-term growth in India.” “Indian consumers’ lifestyles and shopping habits are evolving rapidly. Discretionary spending witnessed a 16 per cent increase for the urban upper and middle classes.
“Lifestyle habits are shifting from austerity to complete self-indulgence and Indians are now unapologetic about spending lavishly on non-essential goods such as luxury watches, cars, hi-tech products etc,” it said.
Interestingly, Prime Minister Manmohan Singh had earlier this month pegged India’s investment requirement for the core sector at USD 320 billion.