40% of Indian food retailers to grow by 10% or more this year

Almost four in 10 Indian food retailers are expected to grow by 10 per cent or more this year, according to research commissioned by DHL Supply Chain, the global market leader for contract logistics solutions.

Based on interviews with more than 300 industry decision-makers in India, Indonesia, Thailand and Vietnam, the study titled, Hungry for Growth: Logistics Trends in Asia’s High-Growth Food Retail Markets, found that more than one in four food retailers in some of Asia’s fastest-growing economies expect to grow by 10 per cent or more this year, as a result of expanding populations and rising income levels.

However, the report also found that while 86 per cent of Indian food retailers understand their supply chain costs, six in 10 are struggling to maintain adequate levels of shipment accuracy in fulfilling growing demand – potentially impacting their ability to keep shelves stocked and orders filled as demand and competitive factors grow increasingly complex.

“Rapid increases in purchasing power, coupled with surges in demand driven by population growth, will yield obvious expansionary benefits to food retailers,” said Dean Eichorn, Vice-President – Retail, DHL Supply Chain Asia Pacific. “However, any food retailer’s success is ultimately dependent on the agility of their supply chains when faced with demand volatility, seasonal fluctuations, and other complex market factors. Asia’s food retail industry looks set to undergo significant growth in the next year, and only with greater understanding and control of their logistics processes will companies be able to take advantage of new opportunities.”