A survey of SMEs in the retail sector, conducted by IndiaMART Knowledge Services (IKS), has revealed that 72 per cent of the respondents expect sales to grow by more than 20 per cent in 2011. Twenty-four per cent expect growth of up to 20 per cent and four per cent predict a decline in sales, compared to 2010.
About 60 per cent of the respondents reported that the market had picked up pace in 2010, 36 per cent reported no change and four per cent felt the situation had worsened. For 16 per cent of the respondents, consumer sentiment surpassed expectations in 2010 while a majority (72 per cent) witnessed an average improvement in consumer sentiment. Twelve per cent experienced a negative change.
When respondents were asked to compare sales of 2010 with 2009, 40 per cent said sales had increased by more than 20 per cent, 40 per cent reported a sales increase of up to 20 per cent, and 20 per cent reported that sales had declined in 2010.
The survey also revealed that 16 per cent of the respondents reported that export demand had increased by more than 20 per cent in 2010, 56 per cent said that demand increased by up to 20 per cent, and 28 per cent said that export demand had declined since 2009.
According to the survey, 44 per cent of the respondents felt that product prices fared better in 2010 as compared to 2009. Of these, eight per cent experienced significant improvement in product prices and 36 per cent found that prices improved only marginally. While 32 per cent of the respondents found no change in product prices, 24 per cent reported that they declined in 2010.