Emerging out from the concept of the kirana stores, the retail stores of India have formed an important part in the Indian economy and the retail sector accounts for 10 per cent of the GDP and about 8 per cent of the employment. Being amongst the fastest growing industries of India, retail sector is expected to grow to US $ 1,200 billion by 2021 from US $ 672 billion in 2017 (as per IBEF). India is globally the fifth largest destination in terms of retail.

As the budget for the financial year 2019 is out, Finance Minister Nirmala Sitharaman’s take on retail is to make local sourcing norms easily accessible for single-brand retail FDI. She said that no merchant discount rate (MDR) charges shall be imposed on digital transaction made at big establishments having an annual turnover of more than Rs. 50 crore.

The driving force for e-commerce is the rise in consumerism which can be further attributed to a significant rise in the disposable income which leads to the ease of expenditure. The digital market has created vast options for both the consumers and the retailers since it reduces the cost of real estate while giving a wide variety of options to choose from at a single platform. Many international fashion brands are ringing the Indian market. With the ease of mobility and changing customer preferences, the retailers can easily access Tier 2 and Tier 3 cities, which in turn makes it easier for the big companies to go deeper.

With the increasing demands of consumers and the fashion giants, both national and international brands entering deep into the streets of India, the country is expected to become the world’s fastest growing e-commerce market. The Indian fashion industry has witnessed several fascinating changes and challenges that make it an ever evolving part of the retail sector.

The substantial expansion of the e-commerce in the country has revolutionised the retail business. Apart from the wide options to choose from that are available on the online platforms, offline stores are no less to attract and woo customers, provided there is enough charm in the store that can behold the customer and persuade him/her to buy. While the big brands are rolled out on the red carpet and get the brand loyalty from the customer, smaller or not so recognised brands fail to sustain the changing strides, even though they are much cheaper than the branded items.

Author's Bio: 

Sonali Ahuja is Apparel Resources content contributor, specialising in Fashion and Trends. She writes about retail news and updates about the apparel industry; seasoned labels and manufacturers; collection reviews; and how fashion intersects all of the above.