According to BMI Research, a Fitch group company, India is among the top five consumer markets in Asia offering retailers the strongest consumer spending growth of an average of 6.1 per cent over the next five years. The other four countries are China, Sri Lanka, Vietnam and Indonesia.
As per the report, the real consumer spending growth in 2017 will be 6.2 per cent. The factors responsible for increase in consumer spending in India include increase in access to consumer credit, lower inflation and favourable regulatory environment for foreign owned retailers. These factors will continue to boost India’s consumer sectors in the coming years. India’s thriving e-commerce segment is expected to grow at double-digit rates in the forecast period up to 2021.
The report has observed that due to the limitations of activities for overseas retailers, e-commerce has been dominating. Bricks-and-mortar retailers have also began to foray into the e-commerce segment supported by the high mobile penetration in the country.
On the other hand, the report also stated that Amazon announced USD 500 mn investment to roll-out and fuel online retailing in India and due to the high mobile penetration in the country Bricks-and-mortar retailers are entering the e/m-commerce segment.