2018 Yearender: Retail sector bags record FDI collection
With the new-age online platforms, retail sector is ending with a record level of FDI in the year 2018, gearing up for more mergers and acquisitions, partnerships and other deals in the new year. The sector, which employs over 60 million people, has also received one of the largest FDI in 2018. According to PTI, the sector experts feel that the year 2018 has also bridged the online and offline divide to bring their customers closer. Here are some top points to know.
With young demographics, increasing disposable income and digital payment-assisted consumption acting as key enablers, the retail sector expects to be more consumer-friendly, while competition may grow manifold to lure customers. "Whether offline or online, retail will continue to drive the virtuous cycle of growth," Walmart India President and CEO Krish Iyer said. Image source: Pixabay
Walmart Inc, the world's largest retailer, acquired 77 per cent stake in India's leading eCommerce marketplace Flipkart in 2018 for approximately USD 16 Billion, making it the largest deal in India. Metro Cash & Carry India chief Arvind Mediratta is quoted as saying, "With India becoming one of the largest preferred retail destinations globally, the Indian retail industry is growing at a fast pace. Digitisation in retail has changed the landscape of the segment." Image source: Reuters
Jeff Bezos-controlled e-commerce giant Amazon has also strengthened its presence by investing in offline formats such as K Raheja-promoted Shopper Stop and Aditya Birla group's retail arm More. Amazon is also believed to be in talks with Kishore Biyani-led Future group to pick up stake. Image source: Reuters
Industry body Retailers Association of India's CEO Kumar Rajagopalan said there is an increasing focus by various retailers to evolve towards an omni-channel presence. He said large online retailers might start looking at an offline presence and large offline retailers would start looking online, resulting in various tie-ups in the next one or two years. Image source: Pixabay
The retail industry, which is estimated to be around USD 680-700 billion, would continue its double digit growth, experts believe. Besides, retailers also expect standardisation in labour laws across states to keep pace with modern business realities and still see land acquisition as a big challenge for large format store. Image source: Reuters