Over the last five years, people in the metros are under the spell of the mall culture. Shopping has been revolutionized with the arrival of malls and the new-generation Indian consumer has not only shifted allegiance to the modern format "experiential stores" but is also ready for a truly international shopping experience. According to the KSA TechnoPak study, there were just three shopping malls operating in India in the year 2000. By 2007, the figure is expected to reach 343. By the end of 2006, almost 18 million sq. ft. of space is to be occupied by malls across twelve cities in India with 54 new malls coming up in Delhi alone. A significant number of new and small malls will be located in small towns.
With the big western retailers like Wal-Mart and Tesco entering the Indian retail market, it will account for 10% of GDP and 8% of employment to reach $17 bn by 2010. According to Global Retail Development Index, India is positioned as the leading destination for retail investment. The retail boom, 85% of which has been concentrated in the metros, has started percolating to Tier-2 cities, which include Ludhiana, Surat, Bhopal, Baroda, etc. More specialty malls will soon emerge in the country. The three key drivers for the retail industry's growth in India are: increasing disposable incomes, more discerning customers and falling real estate prices. In the past decade, the consumer spending has increased at a rate of 11.5% per annum—close to 50% of the consumer expenditure is on food and beverages, and this cannot go unnoticed by the retailers. |
