Seven new global brands enter India in H1 2017: CBRE

About 70 global and domestic retail brands entered or expanded their operations in Mumbai, Delhi national capital region (NCR) and Bangalore and seven new global brands entered India in 2017's first half, said CBRE South Asia , a subsidiary of Los Angeles-based real estate consulting firm CBRE, in its India Retail MarketView Report for H1 2017.

During the same period, demand for quality retail space remained robust with a majority of this supply concentrated in Mumbai, Bengaluru and Delhi-NCR.

Investments into the retail segment by private equity firms and wealth funds touched $200 million, a CBRE press release said quoting the report.

India’s top position in the 2017 A.T. Kearney Global Retail Development Index, which ranks 30 developing countries, is indicative of the growing prominence of the country as a preferred retail destination for global brands, it said.

“With several legislations and policies in implementation mode, we are already seeing an increase in consumer and investor confidence. This will have a cascading effect on the retail segment. Overall, retail real estate will continue to grow and witness healthy demand across tier I and II cities,” according to Anshuman Magazine, chairman, India and South East Asia, CBRE.

Demand for quality space outstripping supply indicates that the retail real estate segment across key cities in India is growing exponentially. The year’s first half witnessed a number of international brands operating in the country expanding their presence.

Several hypermarkets, including Big Bazaar, which opened new stores in Mumbai, Bengaluru and Chennai, were also on expansion mode.

To effectively operate under the new goods and services tax (GST) regime, retailers would need to review their product pricing based on market expectations, align their supply chain and procurement strategy, rework their distribution channels, and ensure greater compliance to laws to be more cost-effective, the report added.