India’s Emerging Cities for Retail DestinationsAccording to Pankaj Renjhen, MD – Retail Services, Jones Lang LaSalle India (JLL), Jaipur, Kochi, Ludhiana, Indore, Nagpur and Udaipur are upcoming cities that retailers are considering with increasing seriousness. In these cities, local retailers already have a strong presence, but branded national and international brands operating in India are only now setting their sights on them as they have plans to expand into cities where the economy is rising significantly.
These emerging cities are becoming lucrative as there is rising brand awareness amongst the consumers. Also, a substantial number of shopping malls are being planned or are already under development. Sales in modern retail stores are quite encouraging, and this is paving the way for even more organised retail.
In Indore, traditional high streets still dominate the retail landscape. However, high street retail is gradually yielding market share to organised retail with the arrival of new malls and shopping centres. M.G Road and Jawaharlal Nehru Road were Indore’s retail hubs before the emergence of markets adjacent to Palasia Chauraha and Bombay Hospital.
In Kochi, retail activity has been concentrated on a central high street, with M.G Road being the dominant retail corridor. Other emerging retail destinations are Marine Drive, Vytilla Junction, Palarivattam and Edapally. Shopping malls are also coming up in Maradu and Edapally, and include the Lullu Mall, among others.
In Ludhiana, Ferozpur Road is the main growth corridor for retail, and it has seen the highest incidence of major organised retail developments with Ansal Plaza, Flamez Mall and Westend Mall. Over time, various national and local developers have entered the market – these include Ansal API, DLF, MBD Group, Omaxe and Chadha Group.
Jaipur has progressed tremendously on the retail front, and is considered one of the most important emerging retail destinations of north India. It has shopping malls with multiplexes operational at various locations. Organised retail has come up and is proliferating in areas such as Tonk Road, Malviya Nagar and Ajmer Road, among others.
Traditional retail places in Udaipur are Bapu Bazaar, Chetak Circle, Suraj Pole, Nehru Bazaar, Bada Bazaar and Chand Pole. Organised retail is also widespread throughout the city, with Durga Nursery Road, Shakti Nagar and Sudkhadia Circle having the largest concentration of new entrants. Shopping malls are beginning to make their presence felt.
In Nagpur, unorganised retail is visible in areas such as Itwari and Sitabuldi, and in the western part of the city. Established prime retail areas are Dharampeth, Ramdaspeth, Gokulpeth, Central Avenue, Gandhibagh and Sadar. Shopping malls are also operational in Nagpur, and a lot of retail brands are entering these malls. Presently, Central Nagpur is a noteworthy retail destination in terms of shopping mall developments, however, both west and south Nagpur are rapidly emerging as new retail hubs.
Though expansion is often a challenge in uncertain economic conditions, it is nevertheless a necessary function for success. Retailers who wait too long to expand into new territories, or are content to stay where they are, are missing the growth wave and will eventually lose their market relevance.