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New mall supply to jump three-fold this year, says ANAROCK report

Nearly US $1.42 bn FDI infused in Indian market between April 2000 to June 2018

Malls  |  Malls In India  |  Offline Retail

Press Trust of India  |  Mumbai 

Shopping is no longer only about the transaction. Instead, it is about creating an atmosphere and experience
Representative Image

Three-fold jump of mall supply this year - from 3.2 mn. sq. ft. in 2018 to nearly 10 mn. sq. ft. - following supply rollover from the previous year. Online players plan survival tactics post new policy; eye brick-and-mortar spaces

pegged to grow at 27% CAGR, at 16% between 2017 and 2021. Responding to burgeoning consumerism in India, mall developers are rapidly infusing new developments across the top 7 cities, with nearly 10 mn. sq. ft. new mall supply in 2019. Factoring in the rollover of some supply from 2018, there will be a three-fold jump in 2019 against the preceding year.

These and other critical insights are outlined in the research report ' (CX) - The Epicentre of Retailing' by Property Consultants, released at the Leadership Summit (RLS) 2019 in today.

and built environment are completely metamorphosing the retail in the country, finds the report. These trends have already started influencing and impacting both the online and the segments.

Anuj Puri, Chairman - Property Consultants says, "With the new policy in effect from early this month, online retail giants are re-aligning their strategies and focussing to expand their offline presence. Brick-and-mortar (offline) retailers who were earlier under threat from e-commerce can now look forward to a more level playing field and tap into the rapidly growing Indian consumer market with renewed confidence and prospects. The new will bring parity between the online and and address the concern of data colonization, as well. Even as online players may lose many of their competitive advantages - such as high price discounts on their private labels - brick-and-mortar stores will focus on offering superior to enhance customer loyalty."

"The new will cause online retail entities to invest seriously in offline stores," says Puri. "They will consider tie-ups with or buy stakes in them. However, as competition stiffens, customer experience will be the key differentiator to the success and sustenance of any new retail venture."

Kumar Rajagopalan, - Retailers Association of (RAI) says, "A combination of essential and value-added services, along with sound strategy, is now the key to customer attraction and therefore successful mall performance. F&B and entertainment are critical ingredients for attracting footfalls into retail developments. Simultaneously, style, variety, and overall quality of also play crucial roles in ensuring customer satisfaction."

Historically dominated by unorganized mom-and-pop stores, the Indian retail sector's dynamics are rapidly changing post liberalization and subsequent e-commerce boom across the country. The rise in Internet subscribers and active social media users, changing lifestyles and increasing disposable incomes have transformed the rural and urban consumer bases alike. This dynamic resulted in the increasing prominence of e-commerce across the country, leading to India's emergence as a key global retail market.

Nearly US $1.42 bn FDI has already been infused in the Indian markets between April 2000 to June 2018 - and global investments into Indian retail are all set to increase further, states the report. The Indian is expected to reach USD 1,750 bn by 2026 due to changing demographics and increasing consumer expenditure, which is expected to rise to USD 3,600 billion by 2020.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Tue, February 26 2019. 15:25 IST