South India: The Birthplace of Modern Retail

South India has played a very important part in helping the Indian retail industry reach its current position of being rated as one of the most dynamic and fastpaced industries in the world. The total consumption expenditure is expected to reach nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017…

- Sandeep Kumar

The southern part of India comprising of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana is the largely recognized as the birthplace of modern retail. While the boundaries of the region extend to Lakshadweep and Puducherry, retail lives mainly in the urban and rural cities of South India. Around 70 percent of India’s richest population lives in these states, leaving apart the super-rich category, the middle and high income classes also are a prominent contributor to retail industry.

While Bengaluru, Hyderabad and Chennai lead the charts in terms of growth, revenue and retail infrastructure, the cities of Coimbatore, Kochi, Vizag, Vijayawada, Trivandrum and Madurai contribute more than $7,000 million worth of retail activity to India. The region accounts for over 10 percent of the country’s Gross Domestic Product (GDP) and around 8 percent of the employment.

South India has played a very important part in helping the Indian retail industry reach its current position of being rated as one of the most dynamic and fast-paced industries in the world. The total consumption expenditure is expected to reach nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017.

Currently, India is the world’s fifth-largest global destination in the retail space, with immense contribution from the south. The strength of South India lies in its uniqueness, traditional approach and robustness. The potential of the market here is immense for regional, national and international players. In fact, the region is dotted with innumerable regional brands, a large chunk of whom are extremely successful.

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