One of India’s largest international property consultancies, JLL India released its latest research report on the Indian retail real estate sector on Saturday. The study was unveiled by JLL India’s Chairman & Country Head, Anuj Puri at the Retail Real Estate India 2016 CXO Meet & Conference in Mumbai.
The event was jointly organized by JLL and UBM India, and was attended by the country’s most prominent stakeholders of the Indian retail real estate industry. One of the highlights was International Director – Retail Research & Consulting, JLL, James Brown, who delivered an incisive global perspective on retail real estate for emerging economies.
The report, entitled ‘Winds of Change’, provides an explicit Indian perspective on JLL’s recently published global report Destination Retail 2016, which examines the presence of 240 international retail brands across 140 key retail cities, and the drivers of expansion as well as the opportunities and barriers for retailers across the globe.
India did anything but hit the high notes in this report, but the factors that have led to the country’s unspectacular rankings are definitely changing.
“In Destination Retail 2016, New Delhi – the top-ranked Indian city in the JLL Global Cross Border Retailer Attractiveness Index 2016, ranks at 92 and Mumbai at 109,” said Anuj Puri. “London takes the top spot with the highest presence of global brands, followed by Hong Kong at second rank and Paris in the third place.”
“Nevertheless, while India is without a doubt under-penetrated, the scenario is rapidly improving. The primary drivers for retail growth are in place – faster economic growth, rising affluence and consumerism, supportive government policies and enhanced flow of capital to the retail real estate sector. These factors are already proving to be dynamic magnets for global brands in the country,” he added.
Cities even from other developing countries such as Indonesia, Thailand, Philippines, and Vietnam rank hugely higher than Indian cities – Bangkok at 13, Jakarta at 24, Manila at 29 and Ho Chi Minh City at 37. This, at a time when India has emerged as the fastest-growing major economy in the world with GDP growth at 7.6 per cent in 2015-16 and consumer confidence rock-solid.
James Brown said, “The MasterCard Index of Consumer Confidence for the first half of 2016 has placed India in ‘extremely optimistic’ territory. Also, the country’s central government is pursuing an aggressive reforms-driven agenda. Big-ticket reforms like the GST bill will definitely propel India into a higher growth trajectory going forward. According to IMF forecast, the Indian economy, already the fastest-growing globally, is expected to continue to out-perform other emerging market countries into 2017. In such a dynamic growth environment, international retail brands will unerringly beat a path to India.”
Interestingly, Bangalore, Hyderabad, Delhi, Chennai, Mumbai and Pune are among the top 10 cities with highest Retail Sales Growth Forecast between 2015-2019 in the JLL Destination Retail 2016 report. India has also emerged at second position in the 2016 Global Retail Development Index by A.T Kearney.
There is little doubt that the country is becoming an attractive destination for global retailers with further liberalisation of the FDI policy and creation of business friendly environment. The growing potential of Indian retail market is already manifested by the entry of several marquee global retailers in last one year.
India has become a key market for global retailers, and they are intent on capitalising on the growing opportunities in the country.
READ FULL REPORT HERE