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Retail Consulting - Tata Strategic

The Indian retail sector is estimated to be at USD 580 Bn including the organized and unorganized segments. The organized retail market has grown rapidly in the last few years to reach USD 57 Bn with CAGR of >20% in the past. Yet, the overall organized retail penetration is only ~10%, with penetration in categories like Food & Grocery as low as 1.7%. Going ahead, rising disposable incomes, growing urban population and a significant young work force with an increasing preference for branded products are expected to drive the growth of organized retail in India. The overall Indian retail market is likely to grow to USD 1300 Bn by 2020 with organized retail expected to grow at 19% CAGR to reach USD 164 Bn. At this growth, the penetration of organized retail is likely to reach 12.7% by 2020. Moreover, with FDI in multi-brand retail being liberalized, the sector is likely to witness significant entry of global retailers. However, with India being a low-margin, high volume market characterized by high rental costs, companies would need to develop customized retail models specific to India.

Online retail is also emerging as a significant alternate channel across many categories. Though initial adoption has been in books and consumer electronics, many other categories are bound to witness growth of this channel driven by the consumer need for convenience. India’s e-commerce market which is currently at USD 11 Bn market is expected to see rapid growth to reach USD 100 Bn by 2020.

Tata Strategic’s Retail practice has assisted international and domestic retailers across a wide variety of retail sub-sectors such as consumer durables, apparel, footwear, food & grocery, food services (cafés and restaurants), home improvement, telecom, hospitality services and online retail.

Leveraging our unmatched India insights, we have engaged with clients across a wide variety of assignments such as:

  1. Formulation of India entry strategy, market / geographic expansion strategy and turnaround strategy
  2. Assessment of market and competitive scenarios
  3. Performance improvement exercises
  4. Development of private label strategy
  5. Assessment of store formats
  6. Assisting private equity funds in business due diligence

Our differentiator is our ability to provide unique India insights and develop actionable solutions resulting in high client impact.