MUMBAI: India’s retail market is expected to grow to around $1.1 trillion by 2020 driven by income growth, urbanization, and attitudinal shifts. The organized retail sector that is estimated to reach nearly 18-20% of the total sector, by 2020, is growing at an annual-high rate of 20%-25%, said CBRE South Asia.
Accordingly, CBRE sees a potential of targeting an organized market of $70 - $80 billion currently, which comprises of organized Indian and international retailers who are operating in India or are evaluating entering India.
“India has witnessed a change in consumption patterns, which has been driven by increased urbanization, expansion of the middle class & increased exposure to global lifestyle due to technological advancements. India’s retail market is robust and this growth has not only been witnessed in the major metropolitan cities but is also spreading across numerous tier 2 and tier 3 locations, providing enhanced business opportunities for retailers. To cater to this segment, we have formed a dedicated retail advisory team of experienced professionals to pioneer this specialist service in the country,” said Anshuman Magazine, Chairman, India and South East Asia, CBRE.
With an objective of tapping the growth potential, CBRE South Asia has launched its comprehensive strategic retail business advisory services to cater to the ever evolving and sophisticated needs of organized retailers who are operating in or evaluating business opportunities in India.
CBRE aims to garner a substantial market share in the retail consulting domain within this new service. The new service will cater to brands across the Lifestyle, Entertainment, F&B, Fashion, Skincare, Electronics and Consumer Durable segments. CBRE will assist brands by providing strategic inputs on the Indian market and helping them with the implementation of their expansion plans within the country.
“Over the last two decades, CBRE has been actively associated with most major developments and initiatives and has been involved in shaping the Indian retail landscape. There have been an increasing number of prominent global brands moving into India and we are likely to see a spurt in activity in this sector,” said Rami Kaushal, Managing Director, Consulting & Valuation, CBRE South Asia. “CBRE combines in-depth local knowledge and understanding of on-ground challenges relating to regulatory aspects, retail business operations, supply chain systems, real estate and Indian shopper behavior, to provide retailers with comprehensive strategic advice and implementable solutions for their market entry /expansion requirements.”
With this new offering, CBRE becomes the only real estate consulting firm to provide business plan advisory to retailers in India. This is in addition to the already existing retail Advisory and Transaction services currently being offered to the clients.
Apart from the traditional sector-specific market studies which analyze the competitive environment, assess market gaps and estimate the market potential, CBRE will also assist clients in the execution of their business strategies, which includes 'Go to Market' strategy, partner selection process, and location identification, Kaushal added.
Retailers, especially from US and Europe, have been showing increasing interest in the India market, due to the growing opportunities in this sector. This is highlighted by the fact that over 40 major international brands have entered the country over the last two years.
“Retailing is much more than "space" or a "place to do business." Retailing is an environment. And while the drivers behind a retail business decision may be somewhat predictable, the physical and psychological forces that create the ideal environment for each brand vary significantly. Understanding these variations, no matter how subtle, is an important component of CBRE’s value proposition. It's what allows us to help our clients make the right decision - whether they're evaluating entry into India, a new location or an investment opportunity,” Magazine added.