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CBRE Group
Source Name: CBRE Group

India’s “Organized Retail Market” Presents a Whopping $75 Billion Opportunity for Retailers

Feb 27, 2017   15:06 IST 
New Delhi, Delhi, India
  • CBRE India launches Retail Business Strategy Services to help International & National retailers tap this opportunity  

  • CBRE aims at a substantial market share for the business line  

 

 

 

CBRE South Asia Pvt. Ltd., India’s leading Real Estate Consulting firm, is pleased to announce the launch of its comprehensive strategic retail business advisory services to cater to the ever evolving and sophisticated needs of organized retailers who are operating in or evaluating business opportunities in India. With this new offering, CBRE becomes the only real estate consulting firm to provide business plan advisory to retailers in India. This is in addition to the already existing retail Advisory and Transaction services currently being offered to the clients.

 

The India Story

  • India has emerged as the fastest growing major economy in the world and is exhibiting a high GDP growth rate of approx. 7%

 

  • Listed in the top five most attractive destinations for FDI

 

  • Expected to be one of the youngest countries in the World by 2020

 

  • India’s retail market is expected to grow to US$ 1.1trilion by 2020

 

  • Organized retail has been exhibiting high growth rates and is estimated to constitute approx. 18-20% of the total sector by 2020 

CBRE aims to garner a substantial market share in the retail consulting domain within this new service. The new service will cater to brands across the Lifestyle, Entertainment, F & B,Fashion, Skincare, Electronics and Consumer Durable segments. CBRE will assist brands by providing strategic inputs on the Indian market and helping them with implementation of their expansion plans within the country.

 

Retailers, especially from US and Europe, have been showing increasing interest in the India market, due to the growing opportunities in this sector. This is highlighted by the fact that over 40 major international brands have entered the country over the last two years.

 

India’s retail market is expected to grow to US$ 1.1 trillion by 2020 ~ driven by income growth, urbanization and attitudinal shifts. The organized retail sector which is estimated to reach approx. 18-20% of the total sector, by 2020, is growing at a high rate of 20%-25% p.a. Accordingly, CBRE sees a potential of targeting an organized market of US$ 70-US$80 Billion currently, which comprises of organized Indian and international retailers who are operating in India or are evaluating entering India.

 

Anshuman Magazine, Chairman, India and South East Asia, CBRE said, “India has witnessed a change in consumption patterns which has been driven by increased urbanization, expansion of the middle class & increased exposure to global lifestyle due to technological advancements. India’s retail market is robust and this growth has not only been witnessed in the major metropolitan cities, but is also spreading across numerous tier 2 and tier 3 locations, providing enhanced business opportunities for retailers. To cater to this segment, we have formed a dedicated retail advisory team of experienced professionals to pioneer this specialist service in the country.”

 

Retailing is much more than "space" or a "place to do business." Retailing is an environment and while the drivers behind a retail business decision may be somewhat predictable, the physical and psychological forces that create the ideal environment for each brandvary significantly. Understanding these variations, no matter how subtle, is an important component of CBRE’s value proposition. It's what allows us to help our clients make the right decision - whether they're evaluating entry into India, a new location or an investment opportunity.

 

Rami Kaushal, Managing Director, Consulting & Valuation, CBRE South Asia Ltd. remarked, “Over the last two decades, CBRE has been actively associated with most major developments and initiatives and has been involved in shaping the Indian retail landscape. There have been an increasing number of prominent global brands moving into India and we are likely to see a spur in activity in this sector.

 

CBRE combines in-depth local knowledge and understanding of on ground challenges relating to regulatory aspects, retail business operations, supply chain systems, real estate and Indian shopper behavior, to provide retailers with comprehensive strategic advice and implementable solutions for their market entry /expansion requirements.”

 

Apart from the traditional sector specific market studies which analyses the competitive environment, assess market gaps and estimate the market potential, CBRE will also assist clients in execution of their business strategies, which includes 'Go to Market' strategy, partner selection process, and location identification” he added.

 

Services include

Sectormarket Studies

  • Market Size and estimating the growth potential  of segments

  • Consumer profiling

  • Competition profiling

  • Assessment of the regulatory environment

  • Understanding of supply chain systems

  • Identification of business risks and barriers to entry

 

 

 

 

 

 

 

Business Plan Formulation

  • Sector specific store profitability analysis

  • Assessment of market gaps and estimating the business potential for the retailer

  • Assessment of costs/ investments

  • Estimation of revenues

  • Roll Out Strategy

 

 

 

 

 

 

Execution of Business Strategy

  • Go to Market Strategy (Direct VS Indirect Entry)

  • Identification of suitable partners (JV/ Franchise)

  • Negotiation Assistance

 

 

 

 

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The company has more than 70,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.

 

Please visit our website at www.cbre.com.​


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