Retail destination/ market: India
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Jan-June: India surpasses China
India surpasses China on Retail Development Index in first half of FY17: Report, Aug 17, 2017: The Times of India
India replaces China as top retail destination in 2017: Study, Sep 20, 2017: The Times of India
India has surpassed China in the global Retail Development Index in 2017
Seven new global brands entered the country during the first half of this year
The investments into the retail segment touched $200 million
MUMBAI: India has replaced China as the numero uno retail destination in 2017 as part of the global retail development index, according to industry experts.
"India has replaced China in 2017 as the top retail destination as part of the study on global retail development index," AT Kearney partner Subhendu Roy said on the concluding day of the two-day India Retail Forum 2017.
The change in ranking was an outcome of four factors including increased consumer spending beyond essentials, rising mobile and internet penetration, favourable foreign investment climate and bold action on cashless transaction and GST, Roy explained. "This has triggered the entry of global brands into India with transparency and ease," he added.
According to India Retail Report 2017, over the past 12-15 months, 100 per cent cash and carry operations are gaining significance in India with Thailand's Siam Makro being the latest entrant in this space following Metro, Walmart and Booker.
Furthermore, Swedish-furniture maker Ikea plans to open its lone distribution centre or warehouse in the country in Pune by end 2017 and its first store in Hyderabad by early 2018 with overall plans to invest USD 1.56 billion to set up 25 stores in India.
In addition to the bigger retailer and brands, the mid-size brands from across the world are also looking to cash on the relaxed retail policy in India.
Food as well as retail Brands such as Korres, Migato, Evisu, Wallstreet English, Pasta Mania, Lush Addiction, Melting Pot, Yogurt Lab and Monnalisa and many others from across the world, are expected to invest about USD 300-500 million cumulatively to open roughly 2,500-3,000 stores, the study said. With increasing global participation in Indian retail, the sector will further evolve and become more organised and competitive in providing better assortment to the consumer.
Seven new global brands entered the country during the first half (H1) of 2017 and investments into the segment touched $200 million, said the India Retail Market View Report. Besides, it added, international brands already present in the country also expanded their presence.
Several hypermarkets, including Big Bazaar which opened new stores in Mumbai, Bengaluru and Chennai, expanded their presence, it said, adding that clothing retailers such as Max and Pantaloons were also active during the review period.
"Our ranking on the 2017 Global Retail Index for developing countries, as well as continued investment by private equity players, is a demonstration of the sustained preference of international brands to set up, or expand their operations in India," CBRE Chairman, India and South East Asia Anshuman Magazine said. The brands which opened their first store in India during H1 include Kate Spade, Scotch & Soda, Pandora and Selected Homme while those who expanded operations were H&M, Jack & Jones, US Polo, Taco Bell and Forever 21, among others.
In terms of rental for the retail space, areas such as Connaught Place, Khan Market, and South Extension in the Capital and Park Street and Elgin Road in Kolkata witnessed appreciation. While rentals in most other high streets remained stable, some high streets such as Linking Road in Mumbai and MG Road in Pune saw a marginal dip in rentals.