Page 48 - #184 September 2023

VOYAGER - INDIA

Adapting to the Industry

Retail brands around the world are today eager to participate in India’s growth as the fifth-largest retail
market in the world. These retailers are eyeing up space in the large upcoming pipeline of Indian retail
real estate developments as the country continues to grow and become a major player in the industry. Over
the coming pages RLI takes a closer look at the retail market and a selection of ground-breaking schemes.

rban Indian consumers have increasing purchasing power Food & beverage and a few entertainment brands are also expected
and branded goods in sectors including apparel, cosmetics, to establish a presence in the Indian market in 2023, with chains such as
Ufootwear, watches, beverages, food and even jewellery is Lavazza and Armani Caffe of Italy, Jamba of the US and The Coffee Club
steadily growing in popularity for usage in both work and leisure. from Australia likely to enter this year.
As the corporates – the Piramals, the Tatas, the Rahejas, ITC, With the economy successfully rebounding from the pandemic and its
S.Kumar’s, RPG Enterprises and mega retailers - Crosswords, after-effects, Indian consumers have hit the markets. From clothing to
Shopper’s Stop and Pantaloons race to revolutionise the retailing accessories, food to beverages, premium is the dominant word on the
sector, retail as an industry in India is coming alive. retail horizon. Both e-commerce and traditional retail players are vying
The market after 2021 has been an eye-opening time for the Indian for a piece of the pie. The growth of the industry is driven by increased
retail sector. The industry saw a decline of 8.5 per cent in FY 2021, but consumer demands, disposable income, efficient logistics and advanced
this quickly recovered in 2022 to reach $836bn with a contribution of technology. Modern retailing has entered the retail market in India in the
81.5 per cent from traditional retail. form of shopping centres, multiplex malls and complex buildings that
According to Kearney Research, India’s retail industry is projected to provide shopping, dining and entertainment under one roof.
grow to $1.407bn by 2026 and more than $1.8trn by 2030, albeit Deloitte The mall of the future is less retail and more content, more social and
India projects online retail to outpace offline growth by 2030 with online more experiential. There is an opportunity to reinvent the mall experience
retail penetration projected to grow at an extraordinary rate, outpacing and bring people together in a way that encourages connection, functioning
offline retail two and a half times over. Meanwhile, according to CBRE, as the heart and central gathering place for the community.
retail leasing is expected to reach 5.5-6 million square feet in 2023, the
highest since the pre-pandemic peak of 6.8 million square feet in 2019.
India will soon get bigger malls that will also make room for
entertainment and services beyond shopping. With malls set to
become 30-40 per cent bigger, the newer models of service should
not be a problem as the malls that will come up in India will kind
of resemble those in Dubai and the US. Leading mall developers,
including Prestige, Phoenix, DLF, Lulu and Unity, have planned malls
that will spread over more than one million square feet, instead of the
more normal 500,000-700,000sq ft leasable area. Malls are not seen
just as shopping centres and bigger mall spaces could help change their
perception as family centres.
More than a dozen international brands, including Valentino, McLaren
and Balenciaga have debuted in India in recent months, seeking to take
advantage of greater demand for upscale labels since the Covid-19
lockdowns. Others that have come to market include Pottery Barn,
Pret A Manger, Tim Hortons and Popeyes. Elsewhere on the retail
front, Aditya Birla Fashion and Retail Ltd and Galeries Lafayette
recently partnered to launch upscale department stores and a specific
e-commerce platform in India.

Lykli, Gurugram, Haryana
Developer: Ingka Group