This year will see a record number of international retailers enter the Indian market after more than 30 new brands from Europe and the US came to India last year, predicts CBRE.
The reason for that is a relaxation of foreign direct investment policies. The rate at which international retailers have taken up premises in the country increased substantially in 2012 following the approval last September of foreign direct investment of up to 51% in multi-brand retailers and up to 100% in single-brand retailers. The policy enables global giants to partner with local operators and sell directly to Indian consumers, said CBRE.
The number of global retailers entering the country will continue to grow in 2013 with retailers such as Walmart, Tesco and Ikea expected to target India.
Italian jewelry brand Damiani and UK-based Paver have all been cleared to open stores in India by the Foreign Investment Promotion Board, while the French cookware maker Le Creuset, and Thailand-based luxury goods retailer Lotus Arts de Vivre have also floated their proposals.
Anshuman Magazine, chairman and managing director of CBRE, South Asia, said: “This new measure is proving to be an incredibly important step towards attracting foreign involvement and transforming a largely untapped market. We have already identified an increase in private equity firms acquiring stakes in retail groups.
“Indian retail is seeing a real transformation; domestic developers’ expertise in shopping mall development is steadily improving as they adopt international best practices. Leading groups are careful not to lease out malls too quickly and are becoming more selective of their retail tenants. The Indian retail market is fast becoming a major international player and 2013 will be a significant year for the retail economy.”
