Retail Shopping Stores
Index : 2,473 | 1Yr : +11.42% | 1Mo : -8.73%
Category : Current Trends
Min Investment : 6,547
The rise of e-commerce has changed India's perception about shopping but contrary to popular belief, it has not deterred the business in the retail shopping stores around the country. Research shows that large brick and mortar retailers have been growing at a healthy pace of over 23% CAGR in the last few years despite the e-commerce phenomenon.
Moreover, they are more focused on expanding their physical presence in tier 2 and tier 3 cities while still maintaining profitability. There are various consumer mindsets and this traditional model is catering to 'feel the product and buy it right away' market segment. Although this may seem outdated, a mass number of people still stick by it and prefer to walk out of the shops with products rather than waiting for them to be delivered. Evolution of the consumer mindset in the recent years indicate that there is space for all in the market. Even in large developed markets like USA and China, the share of offline organised retail is in excess of 90 percent.
However, since these companies are built on the back of profits, they can develop e-commerce channels simultaneously thereby building a hybrid model to consolidate and expand their operations in the future. Invest in companies that are likely to continue to grow from the brick & mortar shopping stores.