Online shopping by Indian gated communities to hit $500bn by 2026

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New Delhi, Nov 15 | As online shopping explodes in India with an increase in smartphone and Internet users, the total online consumption by the gated communities in India will increase by 2.5 times to reach a whopping $500 billion by 2026, a new report showed on Monday.

In the next five years, India is expected to see 24 million gated community households in major cities (from 16 million at the moment), along with witnessing the growth in spend per household from the current $13,000-$14,000 to $19,000-$20,000, bring the overall spend to $460-480 billion (2.3-2.5x of the current spend).

In that period, India will be second to the US that will have 125 million gated community households with $25,000 as spend per household on average.

According to data provided by Bengaluru-based market research firm RedSeer, 90-95 per cent of the 16 million gated community households in India’s major cities are now shopping online (in contrast to 40-45 per cent of non-gated households who shop online).

“By 2026, the total consumption in Indian gated communities will increase by 2.5x reaching $500 billion,” the report showed.

The gated community is more than the sum of its parts (walled living, controlled entrance and exit, pool, fitness centre, supermarket, clubhouse, amphitheatre, etc.).

“It’s an ecosystem unto itself. So quick is its proliferation across Indian cities and so distinctive its residents’ lifestyles that the gated society is now an indispensable player in India’s consumption story,” the RedSeer report mentioned.

With 45 per cent of spend and 32 per cent of population in top-50 cities of India, gated communities are a significant part of India’s consumption story

Although gated community households are mushrooming, they still number in the minority even in major cities.

“The cost of purchasing and maintaining such a household, however, is higher than elsewhere. Which is why residents have higher discretionary spending relative to non-gated households,” the report added.

In the next five years, the spending power of each household will mirror that of identical households in the UK and Germany.

“Residents of gated townships in India will be second only to their American counterparts when it comes to discretionary spending,” the report forecast.

Spurred by the Covid-19 pandemic, gate management platforms went out of their way to accommodate community needs.

The mushrooming of gated communities and their spending power will spur more innovations — and competition — in this sector, making this an exciting space to watch, the report said.

Source: IANS

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Share Market Closing Bell: Nifty ends above 15,800, Sensex gains 180 pts

Share Market Closing Bell: Nifty ends above 15,800, Sensex gains 180 pts

The benchmark Indices Nifty started on the positive side after continuous sell off in last week and has managed to settle at 15842.30 with 60 point gain or 0.38 percent. However Nifty has failed to regain 16000 levels prior to LIC listing.

While Bank nifty has managed to settle at 33597.60 levels after gaining 1.44 percent. On the sectoral front, Nifty PSU Bank, Nifty Realty and Auto have contributed 2-3 percent gain on closing basis. On the flip side Nifty IT and FMCG ended with losses of 0.75 percent and 0.35 respectively. In Nifty, EICHERMOT, APOLLOHOSP and UPL were the top gainers while ULTRACEMCO, SHREECEM and ASIANPAINT were the prime laggards.

Technically, after forming the bearish candle on the weekly chart, the index has formed a Doji candlestick on the daily chart which shows indecisiveness among the trades. Moreover, the index has also faced a resistance from falling trend lines and showed profit booking from higher levels. However, Fibonacci retrenchment also has support around 15650 levels.

Traders may find buying opportunities for short term as if 15650 levels is protected. In the hourly chart, with support of the middle Bollinger band short term upside movement is expected. Stock specific action would drive the market in coming days too.

On the derivatives front, the highest call OI is at 16000 strike price followed by 16200 strike prices while on the put side, highest OI is at 15500 strike price. INDIA VIX closed at 24.53 with gain of 4.43 percent intraday indicating volatility is going to remain till weekly expiry . On the other hand, Bank nifty has support at 32600 levels while resistance is placed at 34500 levels.

Sumeet Bagadia
Executive Director
Choice Broking

Source: Choice India

 

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