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By
Fibre2Fashion
Published
Aug 29, 2016
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Indian cities clocking fastest retail growth

By
Fibre2Fashion
Published
Aug 29, 2016

Indian cities such as Bangalore, Hyderabad, Delhi and Pune are amongst the top 10 cities with highest retail sales growth forecast, according to a latest report. With further liberalisation of the FDI policy and creation of business friendly environment, there is little doubt that India is becoming an attractive destination for global retailers.


Bangalore, Hyderabad, Delhi and Pune are amongst the top 10 cities with highest retail sales growth forecast, according to a new report. - DR


“The growing potential of Indian retail market is manifested by the entry of some of the marquee global retailers in last one year. India has become a key market for global retailers and they are focusing on the growing opportunities in the country,” says the report by JLL titled Destination Retail 2016.

The JLL Global Cross Border Retailer Attractiveness Index 2016 (part of the report) ranks 140 global cities based on the presence of 240 global retail brands in those cities. These cities combined, account for 36 per cent of the world’s GDP and over $15 trillion of consumer spend. London takes the top spot with the highest presence of global brands. It is followed by Hong Kong at second rank and Paris at the third place. New Delhi tops the rank of Indian cities. It stood 92nd followed by Mumbai which ranked 109.

While it comes as no surprise to see cities from developed countries at the top of the list, what is surprising is that cities even from other developing countries such as Indonesia, Thailand, Philippines, and Vietnam rank hugely higher than Indian cities – Bangkok is ranked 13, Jakarta 24, Manila 29, and Ho Chi Minh City 37.

However, the report predicts that the abysmally low presence of global brands in India is a situation likely to change due to faster economic growth, rising affluence and consumerism, supportive government policies, and enhanced flow of capital to the retail real estate sector.

Already, there has been a surge in the number of global retailers entering the country this year. Aéropostale, The Gap, and The Children’s Place entered in partnership with Arvind Lifestyle Brands. Topshop and Topman will retail their products on Jabong.com. Hennes and Mauritz became the first global retailer to enter India after the government approved 100 per cent FDI in single-brand retail and plans to double the number of its stores in the country from six currently to 12 by year-end.

“The rising affluence of the Indian consumer, the improving business sentiment and its percolation into the real economy is further prompting global retailers to shed their ‘wait and watch’ stance to aggressively evaluate opportunities for expansion in one of the world’s fastest growing retail markets. And we hope soon that Indian cities will move up the scale in ranking on the Global Cross Border Retailer Attractiveness Index,” says the report. 
 

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