Growth of ‘Large Format Retail' in India. How Kärcher believes it's an important driver for future business.

Large format retail (LFR) has been growing steadily in India over the past few years, driven by factors such as rising incomes, urbanization, changing consumer preferences, and increased investment in the retail sector.

These stores are typically spread over large areas and offer a wide range of products under one roof. As per Kearney Research, India’s retail industry is projected to grow at 9% over 2019-2030, from US$ 779 billion in 2019 to US$ 1,407 billion by 2026 and more than US$ 1.8 trillion by 2030. 

In addition, the Indian government's recent decision to allow 100% foreign direct investment (FDI) in single-brand retail and 51% FDI in multi-brand retail is expected to further boost the growth of LFR in the country.

Characterised by innovative thinking in cleaning solutions, Kärcher believes that large-format retail is an important driver for future business in India: 

First, the growing number of LFR stores in the country provides an opportunity for Kärcher to expand its distribution network, reach more customers and educate them on the benefits of their cleaning equipment.

 Second, the LFR allows them to be into a larger customer base and showcase their products in an environment that is well suited for their cleaning technology.

Third, LFR stores often have a higher footfall, which can lead to greater brand awareness and exposure for Kärcher.

In conclusion, Kärcher sees the growth of LFR in India as a significant opportunity for its business. By harnessing its potential, Kärcher plans to leverage the increased footfall, broaden its customer base, increase sales and grow its brand in the Indian market.

Authored by

Mukesh Sharma

GM, Consumer Products - Offline

Karcher India