Pakistan is picking up the pace as the country is becoming the world’s fastest growing retail market. The youth bulge – growing band of youth contributing greatly to the country’s economy with rising incomes – has been the most significant reason behind the phenomenon. 135 million heads strong youth is the fuel propelling the ascend of world’s fastest retail market.
According to a research group Euromonitor International, the disposable income has doubled since 2010. Additionally, the market is expected to increase by 8.2% per year through 2016-2021. Research shows that the size of middle class in Pakistan is on its way to exceed that of the U.K and Italy.
With an improved security environment, cheap consumer prices and economic expansion rate of 5%, people of Pakistan are spending more than ever. Out of Pakistan’s 207.8 million people, two-third of them are individuals under the age of 30, says reports generated by the Jinnah Institute.
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Senior research analyst at Euromonitor, Shabori Das said:
“We have a new millennial shopper at hand. They don’t mind spending to have the kind of lifestyle they would like. It’s not like the Baby Boomer generation where savings for the future generation was important”
Manufacturing plants to be developed in Pakistan
Pakistan isn’t shifting wholly towards e-commerce like the US where stores are closing every now and then and most of the retail is shifting towards online stores and markets. This approach has also attracted different manufacturers and vendors from different companies to approach Pakistan in order to develop their manufacturing plants in the country. Recently, Kia Motors Corp., Renault SA, and Hyundai Motor Co. have been deciding to build plants in South Asian countries like Pakistan.
Retail market in Pakistan is expected to increase by a humongous margin of 50% to 1 million outlets in the upcoming five years. Moreover, Pakistan in the past two years hosted the opening of the three biggest malls in the country: Lucky One Mall in Karachi; Emporium and the Packages Mall in Lahore were inaugurated in the past two years.
Pakistan and India are going on the same track. Both countries have youth which is not inclined towards saving and is more inclined towards spending for their own needs. However, the same is not the case in other countries where retailers see a totally different trend.