Online retail market spending is likely to jump more than 10 times to $14 billion in the next five years in the seven major cities, according to property consultant Knight Frank.

The seven cities are Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad and Pune. “The total retail spending in the top seven cities of India is projected to more than double from Rs 3,586 billion ($59.8 billion) in 2014 to Rs 7,650 billion ($127.5 billion) in 2019,” Knight Frank India said in a report.

Knight Frank in association with the Retailers Association of India on Monday launched the first edition of its flagship report on the retail sector, ‘Think India. Think Retail’.

While the share of E-tail is expected to jump by more than five times from 2 per cent in 2014 to 11 per cent in 2019, the share of brick and mortar modern retail is expected to fall from 17 per cent to 13 per cent during the same period.

The consultant noted that e-tail will gain primarily at the expense of brick and mortar modern retail, but it will attract consumers from non-modern retail too.

Non-modern retail’s share in the total retail spending is estimated to fall from 81 per cent in 2014 to 76 per cent by 2019.

Knight Frank India CMD Shishir Baijal said: “Over the last decade, the concept of shopping has undergone a sea change in terms of format and consumer buying behaviour, ushering in a revolution across the country.”

With an ever expanding domestic market and a forecast growth rate of 15 per cent a year, he said the Indian retailing scene seems extremely attractive for stakeholders and investors alike.

“The e-commerce industry is booming like never before and this coupled with high disposable incomes have led to a spurt in the internet culture that aims to change the dynamics of the Brick & Mortar modern retail segment,” Baijal added.

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