After a long period of upheaval due to the pandemic, India’s retail sector has been booming lately. COVID-19 has introduced new trends and created a more digitally-centric consumer who expects frictionless transactions, personalized experiences, and elevated conveniences. Malls in India are now acting according to the new patterns to stay relevant and their efforts are yielding positive results.
The latest BCG-RAI study shows that Indian consumption, which grew by around 12% before the pandemic, fell into negative territory during the pandemic, but has now recovered to exceed pre-pandemic growth levels of 17 %. He also predicted that the retail industry is expected to grow 10% annually to reach around $2 trillion by 2032.
“Today, the retail trade is still far from organized and despite this, it contributes the most to the Indian economy. In addition, shopping malls play a vital role in achieving the goal. From shopping to FnB, health and wellness to gaming and entertainment, shopping malls today cater to all segments to meet customer demands. The use of technology helps retailers track customer preferences and deliver engaging online and in-store experiences. Several retailers have focused on omnichannel strategies by blending physical and online channels seamlessly,” said Shibu Philips, Chief Business Officer, LuLu Group International.
Continuing his developments, he said, “Tier 2 and Tier 3 cities have seen a faster evolution in the growth of disposable income, mobile internet and supporting infrastructure. Consumers in small towns tend to buy branded products, which is a good sign for generating revenue. Based on current trends, it’s safe to say that malls are here to stay; they will co-exist with the e-commerce model and contribute immensely to the success of the Indian retail sector. »
In its “Real Estate Market Outlook 2022 – India” report, one of the country’s leading real estate consultancies said that India could see a 25% increase in new store openings in 2022 compared to India. previous year and revenue from brick and mortar retailers is expected to grow, with retailers set to lease more than 5.1 million square feet of space in 2022, which is approaching the previous two years’ combined figure of 5 .9 million square feet.
Aman Trehan, Executive Director of Trehan Iris, said: “Despite the pandemic-related disruptions, India’s retail sector has recorded robust growth over the past quarters. Strengthening market sentiment provided the much-needed boost to the retail sector. Organized retail is a key contributor to the growth of the retail industry. Various brands continue their expansion plans and opt for high-end shopping centers which continue to attract interest from consumers and investors. By quickly adapting the revamped approach, developers are going even further in delivering an improved and seamless experience to customers. Such an approach also attracts retailers who seek premium products for establishing or expanding their brand. Therefore, shopping malls will continue to contribute to the growth of the retail industry. Moreover, with changing trends finding their place in the market, the retail sector has a promising outlook. »
Jatin Goel, Director of Omaxe Ltd, said: “Growth in consumer spending, as evidenced by the increase in credit/debit cards and digital spending, indicates an increase in online retail activity. and offline. More hiring and better pay rises have prompted India’s consumer class to splurge. Temporary hiccups like rising inflation, both food and energy, may not slow down the retail industry. This growth in the retail industry bodes well for the commercial real estate segment which is seeing new launches and increased uptake in malls and high streets across geographies. Retailers and landlords have reverted to pre-pandemic contracts and overall sentiment appears bullish. »
“The industry is bouncing back and brands have started to expand tremendously and are renting out on main roads and malls, depending on the areas, how close the areas are to their constituency, etc. While some brands are geared more towards malls, others see the potential of spaces based on factors such as area, proximity to local locations, various stores nearby, and hangouts on offer, in addition to others. things. It all depends on footfall and customer traffic,” said Elan Group Managing Director Ravish Kapoor.
The retail sector has played a remarkable role in India and across the world in increasing the productivity of consumer goods and services. Based on current trends, it seems safe to say that malls are here to stay; they will co-exist with the e-commerce model and contribute immensely to the success of the Indian retail sector.