According to the report of CBRE, foreign retailers are set to demand for more retail space in India. According to the report Mumbai and Delhi are the two most favorite destinations of the foreign retailers.
Foreign retailers across the globe are flowing to India now. The rising population in India in fact prompts them to set up stores in the Subcontinent. The rising income level is another factor which prompts them to set up more stores here.
Last year, in Delhi alone 13 stores were set by the foreign retailers. Though this is not so a big number compared to 51 stores in Hong Kong or Singapore’s 27 stores, this is big enough.
Foreign retailers are reported to raise higher demand for retail space.
Across the Asia-Pacific Region the global retailers have set up nearly 70 stores, states the ‘Retail Hotspots in Asia Pacific,’ a report by CBRE.
Global retailers are looking at India as a mature market, said Anshuman Magazine, CBRE South Asia Pvt. Ltd.’s CMD.
India is slowly becoming a hot spot for the retailers. Additionally their sentiments are still boosted by the new FDI policy of the government under which the foreign retailers are permitted to directly invest in India.
The government has permitted more FDI in multi-brand products as well. However the final decision is left with the state governments. It means that they can either prevent the foreigners from entering their state or they can welcome them to their states.
Foreign retailers to demand more retail space this year.
While majority of the states have welcomed the global retailers, some of the states have not shown a green signal to them. New Delhi is on the top among those states which have allowed foreign retailers.
Luxury and business retailers opened most number of new stores in the Asia-Pacific Region. More than one fourth (26%) of the stores are set up by this class.
Mid-range fashion and specialist clothing stood second and third positions with new store opening percentages 18 and 13 percent respectively. Coffee and restaurant chains hold 13 percent of new stores while value and denim stores hold 11 percent of new stores.