In India, Shopping Malls today have become the most important center for the growth of retail businesses. It marks an exhilarating new era of growth and development as the cumulative real estate stock of shopping malls in the top six cities, Delhi ncr, Mumbai, bangalore, Hyderabad, Pune, and Chennai, crosses 100 million in the first half of 2024.
As per the survey, in India shopping complex customers’ journey started in 1991 with the first shopping centre was opened and reached a peak in 22 years with 50 million square feet in 2013. This period was dominated by three regions and three regions only where more than three-fourths stock originated from – Bengaluru, Delhi NCR and Mumbai Metropolitan Region.
Then, in only very little over a decade, 2014-2024, the area skyrocketed to 100 million square feet where finally Bengaluru and ncr led the expansion contributing almost 60% of such growth. Though largely Bangalore dominated the business another quarter of this development narrative was contributed by emerging cities like Hyderabad and Pune.
India projected to add stunning addition of retail space that is 30 million square feet of new retail mall space by the year end of 2027 which will be more than doubling the rate of building over the preceding ten years. As reported by real estate data analytics platform CRE Matrix, such growth will allow achieving a considerable goal of 200 million square feet by the year 2036 with the more youthful cities expected to be more active in this further stage of development.
In most cases, Indian shopping malls have offered many choices without any specialization. However, the emerging trend in the development of luxury-themed malls in Bengaluru, Delhi-NCR, and MMR might be replicated in other cities. That potential for developing even more theme-based retail centers elsewhere in the country was illustrated by the success, for instance, of high-end shopping outlet malls such as Pacific Jasola in Delhi-NCR and Commercial Property in Gurgaon, etc. which provides ample scope of specializing retail spaces.
Shifting Demand Pattern In Retail What Is It?
The analysis revealed that the forecast study period, between 2018 and 2024, will see drastic changes in demand, with the likes of Ralph Lauren via Victoria Secret and Michael Kors harvesting the greatest market share. The mid-market segment which accounted for 38% market share in 2018 which has companies like domino’s, subway, and big bazaar, has now moved to more of value-for-money and reasonably priced luxuries. Value for money brands like Trends, Max, and Reliance Fresh on the other hand have grown from only 8% of the market share in 2010 to 13% in 2015. There was equally an increase of market share for premium brands with an increase from 16% in 2010 to 21% in 2015.
India stands to benefit massively as our portfolio exceeds 7,300 brands in the country, so its in order to ascertain this expected growth. Malls, high streets and brands have to re-invent themselves because the consumer is changing, demand patterns are changing.
In 2030 the picture of the brand environment will change greatly from the present one with the upper half of the market showing stronger growth drive.
Clothing and consumer durables are the new leading category in the Indian retail market with 36% total sales coming from the top six cities. Close on its heels is the consumer base segment that constitutes 25% of the total business value. The well performing retail assets have optimized their brand portfolio mix through careful selection of brands so as to optimize footfalls in their respective outlets.
In terms of value perspective, since 2018, the non-ethnic unisex category is the most commercially viable category in the Indian retail market. In the last five years in particular, the products relating to jewellery and precious stones along with sportswear and bars/breweries have witnessed remarkable growth with their share rising up to 11% owing to the changing trends of consumption.
Conclusions
Price, versus emotion, has not been utilized as a strategy to explore the Indian retail landscape. India’s real estate is also evolving. Maintaining growth in this sector calls for such alignment with shifting load patterns. The objective of the study is to provide insights into the current and future state of retail market in India to its retailers and real estate developers.
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