Retail News Update

India has become synonymous with retail boom. After seeing the monopoly of Indian retailers, the market is all set to welcome retailers from Gulf countries who are making their way to invest in the country.FreshPlaza news has revealed that with India currently undergoing a retail boom, private players from the Gulf region are jostling to invest in the sector but are facing hurdles in the massive diverse market.Despite an excess of hypermarkets and international brands in the country, the organized sector is merely three to five percent, offering unlimited future opportunities to GCC-related retailers, franchise companies and mall developers.

The last six years have witnessed growing exposure to international brands in India, mainly due to the booming IT sector presenting greater overseas travel opportunities. Shubhranshu Pani, president, retail services at Trammell Crow Meghraj Property Consultants, said in news on Gulfnews that this has led to a rising demand for new brands as well as an increase of 30% in property prices in the last two years.Global retail heavyweights, with an eye on newer markets, are mainly interested in the huge middle class of India and its relatively untapped retail industry. The country’s size may, however, prove to be a deterrent for retailers to invest in India.

Due to changing lifestyles, solid income growth and favorable demographic patterns, Indian retail is set for a 25% annual growth. The gradual growth of retail sector in India could make it the ‘next boom industry’. The very idea of shopping has transformed in format as well as consumer behavior revolutionizing shopping experience in India.

The growing population of the young professionals has further strengthened the good growth prospects of India’s retail sector. Heavier pay packets, growing culture of nuclear families in urban India, a growing working women populace and burgeoning opportunities in service sector have propelled the growth of India’s organized retail segment.

A RNCOS research analyst is of the view that there is a growing perception of India as a treasure-trove for retail giants worldwide, with the latest research ranking India among the top destinations for retailers as a lucrative new retail market. While India’s retail industry may be at the crossroad, government has liberalized its policies and emerging technologies too are fuelling retail operations in the country. The surging retail industry has consequently taken the position of India as an attractive destination for investors in the retail industry several notches higher.