According to a study by the Federation of Indian Chambers of Commerce and Industry (Ficci), the expected 14 per cent growth in the Indian population over the next 10 years is likely to throw up a variety of opportunities for retailers.
Since the number of people in the 40-60 years age group will increase by up to 30 per cent, sales of cosmetics, skin-care products, hair dyes will rise, the study observed.
An increase in the number of households by 25 per cent over the next 10 years would lead to a higher growth in household decor items vis-a-vis personal items such as apparel and fashion accessories. On the other hand, since the number of children will remain more or less stable at 30 million, there would be lesser growth in toys, games and some apparel segments.
The study says that the retail sector in India is likely to see a new high by 2010 and will witness huge investments in the next four-five years. Newer retail chains will come in and existing players will increase penetration levels, the study pointed out.
The study pointed out that in case the ban on foreign players holding a controlling stake in the area of retailing was lifted, the sector could see drastic changes.
The study said the entry of foreign players will not only affect ownership, but also change the basics of business. Huge investments in stores and supply chains can transform the scenario, the Ficci study said.
Source: Business Standard