If you are a retailer looking out for a nationwide rollout, then this how you can prioritize on the states, categorized on the potential they offer. The total monthly consumer expenditure (MCE) has been used as a proxy for the state’s overall market potential. The objective of segregating states based on food and non-food expenditure ensures that the relative consumption expenditure on non-food categories is critical to players in the durables and fast moving consumer goods (FMCG) spaces.
The following Chart shows the Potential of every Indian state for organized retailing with
Data suggests that Uttar Pradesh is best suited for organized retailing in India, but unfortunately, you know how the local Government is :-). Maharashtra, Andhra Pradesh and Tamilnadu are well suited and hence witnessing increased rollouts. Any other thoughts ?
