India tops 2023 Global Retail Development Index

Saudi Arabia, China, Kazakhstan, Malaysia, and Indonesia also made it to the Top 10.

India is the leading retail market and remains appealing to global investors and operators as it ranks first out of 44 markets in Kearney’s 2023 Global Retail Development Index with a final score of 66.4 out of 100.

In a report, Kearney said India is a “dynamically expanding modern market” that has growing demand for international brands and premium products, particularly in urban areas and some tier 1 and 4 markets.

“But, looked at through another lens, the country–especially in terms of grocery retailing–still looks like a traditional market dominated by literally millions of small shopkeepers selling to a large consumer segment focused on value brands and price,” Kearney said.

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Despite the high urbanisation in metros and tier 1 cities, Kearney noted that Tier 2, 3, and 4 markets could also become “significant growth arenas” for retailers, citing the economic growth, particularly in smaller tier 3 and 4 markets.

Kearney said that the markets are evaluated on their attractiveness to retailers based on their economic health and stability, government policy, competitive activity, penetration of modern trade, consumer behaviours, and demographic, social, and cultural considerations.

Other Asian markets that made it to the list were Saudi Arabia (3rd), China (4th), Kazakhstan (7th), Malaysia (8th), Indonesia (10th), Bangladesh (13th), Iran (26th), Pakistan (32nd), Vietnam (34th), Nepal (35th), Philippines (41st), Cambodia (42nd), and Thailand (44th).