India’s Retail Sector Undergone Rapid Transformation by JLL India..!

India’s retail sector has undergone a rapid transformation over the past decade &  this process is expected to strengthen in coming years with the rise in population, per capita income and urbanisation.

According to the provisional estimate by the Census of India 2011, India’s total population has reached nearly 121 crore compared to the 103 crore recorded in the previous census of 2001.

Tremendous Population Growth..!

This tremendous growth in population has led to an unprecedented scale of urbanisation, with the share of urban population increasing to 31 per cent in 2011 from 28 per cent in 2001.

According to the UN (United Nations), India has the highest rate of change in its urban population of all the BRIC nations and this figure is likely to remain above 2 per cent annually for the next 3 decades.

About 64 per cent of the Indian population is in the working age group of 15 to 64 and 35 per cent is relatively young, aged 15 to 34.

As per IMF estimates, the per capita GDP (Gross domestic Production) of India was Rs. 46,221 per annum at end- 2011, a figure that is forecast to rise to Rs.  58,224 by end 2015.

With India’s growing per capita income and a rising middle class, the retail sector has the potential to be the real growth engine of India’s economy.

While demand for a superior shopping experience is evident in the metropolitan cities, the Tier II & Tier III towns are also rapidly acclimatising to the changing landscape of the Indian retail market. Growing consumerism, changes in consumers’ tastes and preferences, and heightened brand consciousness has been fast replacing traditional mom and pop stores with organised

retail malls that house lifestyle and luxury brands from national & international retailers.

As part of its retail transformation, India has seen substantial increase in mall space in recent years. Over the past decade, such cities as NCR - Delhi, Mumbai and Bangalore have shown prominent growth in retail stock, while Hyderabad, Pune, Chennai, Kolkata and

many other Tier III towns are rapidly emerging as the retail growth corridors of the next decade.

City Statistics

2011 Population (million)

City Name       Population (million)

Mumbai           20.5

Delhi - NCR    16.8

Bangalore      8.4   

Chennai         6.4

Hyderabad     6.8

Pune              5.8

Kolkata          8.6

Monthly Per Capita Income (INR)

City Name                     Per Capita Income (Rs.)

Mumbai           12,554

Delhi - NCR    11,762

Bangalore      8,357   

Chennai         7,507

Hyderabad     6,057

Pune             10,598

Kolkata          6,433

For more details, contact,

Ashutosh Limaye

Head, Research and REIS

ashutosh.limaye@ap.jll.com

+91 98211 07054

Jones Lang LaSalle Retail contacts in India

Shubhranshu Pani

shubhranshu.pani@ap.jll.com

+91 98205 19899

Pankaj Renjhen

pankaj.renjhen@ap.jll.com

+91 98992 18885

Authors

Subash Chandra Bhola

Assistant Vice President, Research and REIS

subash.bhola@ap.jll.com

+91 22 3985 2311

Karan Khetan

Senior Analyst, Research and REIS

karan.khetan@ap.jll.com

+91 22 3985 1313

Src : L Jones Lang LaSalle Asia Pacific

Share: