Retail

India attracted 24 new global retail brands since 2021: Report

20 Sep '23

2 min read

Pic: Shutterstock/hxdbzxy

Insights

India continues to attract international brands with 24 new entrants since 2021, mainly choosing prime cities like Delhi NCR, Mumbai, and Bengaluru.
Despite the growth of omnichannel retail, physical stores remain pivotal.
About 38 million square feet of retail developments have been forecast from H2 2023 to 2027, with Delhi NCR spearheading this growth.

India remains a favourable market for international brands, with 24 new entrants since 2021, as per a recent report. The growing interest has been attributed to increased consumption, strategic partnerships of Indian retail chains, rising institutional participation, and a supportive regulatory backdrop in India.

The majority of the new international entrants have opted for high-quality mall developments in prime gateway cities including Delhi NCR, Mumbai, and Bengaluru, according to JLL India’s recent report titled ‘India Retail: Evolving to a New Dawn’.

Despite the rising importance of omnichannel retail, brick-and-mortar stores continue to offer essential experiential shopping and social connection opportunities. As of the first half of 2023, the operational retail stock in the top seven cities was recorded at 89 million square feet. More than half of this lies in Delhi NCR and Mumbai.

The first half of 2023 also saw significant mall completions, notably in Hyderabad and Delhi NCR, adding around 1.1 million square feet to the operational stock. Leasing activity in the period indicated consumer confidence, with Bengaluru taking the lead, followed by Delhi NCR and Hyderabad.

Looking forward, the physical retail space segment is bracing for an impressive supply pipeline of over 38 million square feet of retail developments across top cities between the second half of 2023 and 2027. Delhi NCR is poised to contribute the largest share to this upcoming supply, trailed by Chennai and Hyderabad.

The report also spotlighted emerging retail trends, including the budding stage of premium outlet centres. Another trend on the rise is highway retail, expected to gain momentum with the government’s promotion of electric vehicles and plans to establish numerous EV charging stations accompanied by support retail facilities, offering promising avenues for international retailers.

Fibre2Fashion News Desk (NB)

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