Mumbai, Feb 11, 2015: Knight Frank India in association with the Retailers Association of India today launched the first edition of its flagship report on the retail sector – ‘Think India. Think Retail’. The report is a first-of-its-kind mapping of India’s modern retail market across the top 7 metropolitan regions and an analysis of modern retail’s impact on real estate.
Key Highlights
- Retail spending across top 7 cities to more than double in the next 5 years
- E-Commerce on the driving seat ; e-tail spending to touch INR 839 bn by 2019
- Malls & High streets feel the heat as buyers log in to the online club
- Developers see the silver line; top 7 cities to create 4.3 mn sq ft of addnl. retail space
- USA accounts for 35% of all foreign brands in India; will FDI bring in more
(Report Takeaways below)
Kumar Rajagopalan, CEO, Retailers Association of India said, “ Knight Frank ‘Think India. Think Retail.’ is a one of its kind report, as it gives an accurate idea of the total retail spending and penetration of modern retail in 2014 – an industry first. The findings of the report give encouraging signs of modernisation of retail in India. We at RAI hope that players from the entire retail value chain will find them useful in making informed decisions when it regards retail real estate or space – which has been and will remain the final frontier .”
Added Shishir Baijal, Chairman & Managing Director, Knight Frank India said,“Over the last decade, the concept of shopping has also undergone a sea change in terms of format and consumer buying behavior, ushering in a revolution across the country.With an ever expanding domestic market and a forecast growth rate of 15% a year, 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.”
Dr. Samantak Das, Chief Economist & Director of Research, Knight Frank India : “ The overall retail spending across top seven cities in India will more than double over the next 5 years. This gives an immense opportunity for the retail sector to adopt a higher growth trajectory. With the middle class group becoming significantly large coupled with the exposure of Indian consumers to global retail markets will together fuel demand for sophisticated products and better customer services. As a consequence, the retail shop formats in India have changed over the years, from non-modern mom& pop stores to modern structures in shopping streets and malls. While modern retail is expected to grow its share from the current 19% to 24% over the next 5 years, E-tailing as a component of modern retail is likely to see a substantial jump in its share and has the potential to challenge the prospects of brick & mortar modern retail outlets.”
Re-affirmed Aditya Sachdeva, Director – Retail, Knight Frank India: “ We need more retail real estate to come up. Even though e-commerce will excel in the country, retailers will always require additional footprint to increase business turnovers. Despite the spurt in online retailing, there still exists a significant number of reputed retailers who believe in the latent strengths of the brick & mortar retailing methods and going forward, will continue to invest in this segment. With reference to our understanding of the current market, there is an additional requirement of 4.3 mn sq ft of retail space per annum across the top seven cities, however there is no reason why this number can’t be breached in the years to come.”CCI Newswire
