RETAIL STORE INDIA

The Retail Space Provider Company

26 Jan, 2008, 1353 hrs IST, TNN

The Indian consumers surely are a pampered lot! Hifi gadgets, designer apparel, delectable dishes and ritzy lifestyle accessories sit patiently, waiting to be adored and finally bought, as swanky stores try and beckon them to their posh air conditioned environs. The chic malls that house these shops accessorize themselves with all the facilities possible that could make the consumer's shopping experience a true out of the world experience.

As one watches malls springing up by the dozen in Delhi NCR (National Capital Region), India's stupendous growth in the retail sector literally hits one in the face. Lifestyle brands such as Marks & Spencer and international chains like Debenhams have never had it so good as these malls provide a perfect environment for their wares to be showcased to their target audience.

There was a time, some five to six years ago, when Ansal Plaza was the only mall that capitals' proud shopa-holics could boast of. Today, however, the scenario couldn't have been more different as major retail expansion is happening in Noida and Gurgaon. A rapidly growing economy, de-aging population, younger workforce, greater affluence, growth in double income families and rapid urbanization are making these regions the cynosure of global investors .

Ambi Mall in Gurgaon and Great India Place in Noida, which are fast gaining popularity as two of the biggest malls in the country, are likely to give an immense boost to footfalls as they house some of the biggest international brands. The popular saying-Consumer Is King- has assumed a whole new meaning in the present retail scenario as every step possible is being taken to satisfy the consumer's needs. It is to this end that the trend of specialised malls has also picked up in India. Malls like Gold Souk and the Wedding Mall have been conceptualized to cater to the specific needs of the buyer; so that he can find all possible brands of a particular segment like jewellery or trousseau under one roof.

There are several factors that have led to this extremely exciting phase in the Indian retail sector; the first and foremost being a younger workforce. Armed with vocational degrees and an enterprising spirit, the youth have started working at a much younger age these days, which in turn has had a spiraling effect on their ability to source finance for their lifestyle needs. With an increase in disposable income, the youth are now empowered to make decisions on what they wish to acquire and at what price. While a decade ago, the youth saved up to purchase essentials like a house or a car, today the younger generation is more prone to making impulse purchases. Usage of plastic money too has led to rise in average billing value on categories like personal care and recreation, thus leading to increase in demand for lifestyle products. Hence, it is common sight these days to see 20-somethings sporting enviable brands.

Another factor that has contributed to this retail boom is the changing role of women in society. The modern woman has begun to play a more active role outside of the house and with her being financially independent she can now splurge on products that she most desires.

The social fabric of India too has undergone a transformation over the past decade. With growing number of double income nuclear families, people are now spending freely on designer apparel, accessories and IT products.

One segment in the retail sector that has received great impetus from this changing socio-economic fabric is kids' retail. Often out of guilt of not having spent enough time with the child, parents shower their kids with expensive toys, games and designer wear. Such is the potential of this segment that industry experts believe that kids' retailing will soon touch the annual growth of 30 to 35 per cent. So, you now find parents splurging heavily on international apparel brands and cool stationery to keep their tiny tots happy and satiated.

Another sector that is booming these days is that of personal care. Studies have shown that Indians have started being more conscious of their appearance. This trend has been seen across age groups, be it the youth, middle aged or the old. This has brought about drastic changes in lifestyles, right from the way people dress to the skin care brands that they use. Anti-aging products and hair care brands are among the most popular products in this category.
So the question that most people are asking now is whether this retail party is going to continue in the years to come or not?

Well, there is good news as studies by KSA Technopak suggests that fresh investments are expected in the retail sector in the next five years. This is an extremely positive development as such a thing has not been noted in any of the emerging markets before. India has also topped the AT Kearney's annual Global Retail Development Index for the third consecutive year thus making it the most attractive market for retail investment .

Such is the retail potential in the country that it is expected that the mall space is expected to touch an estimated 60 million square feet by end of 2008 (According to Jones Lang LaSalle's third annual Retailer Sentiment Survey-Asia ). With such major developments taking place, it can be safely said that the retail boom in India is surely going to jump from strength to strength in times to come.

WHAT’S BEHIND THE RETAIL BOOM?

A younger workforce who has the ability to source finance for its needs.

A financially independent woman who knows what she wants and has the power to splurge on it.

Rise in double income nuclear familes.

Guilt factor that leads working parents to spend on expensive products for children.

Indians have now become extremely conscious about their appearance thus giving boost to demand for personal care products.

Source : Economic Times