India Major Report - India Retailer Sentiment Survey September 2016
The CBRE India’s Retailer Sentiment Survey tries to analyze various aspects of international and domestic retailer preferences while operating in India. The survey covered responses from leading retailers across various segments and highlights the factors impacting location choices, online operations and expansion plans.
On expected lines, footfalls (indicating catchment and market popularity), occupation cost and quality of space continued to lead location decisions for most retailers.
While 80% of the respondents placed significant importance on the operation model when looking at opening store in a mall; convenience, suitability and availability drove their decisions while locating on a high street.
'Availability' of appropriate stores suiting specific requirements overtook 'choice' as majority of the respondents continued to be challenged by suitability, location and costs while finalizing location of a store.
While NCR (Delhi, Gurgaon, Noida) followed by Mumbai continued to serve as gateway cities, the lure of tier II cities continues to be promising, with several retailers including state capitals or cities with high income levels as part of their expansion plans.
Reiterating the scope of online retail in India, majority of the e-tail respondents were optimistic about increasing online sales going forward - amidst a scenario of increasing consumer knowledge, variety of offering and the convenience that online retail offers.