New Delhi [India], The fashion and apparel sector has emerged as a leader in India's retail landscape, contributing an impressive 40 per cent to the real estate leasing activity in the first quarter (January-March) of 2024.
According to a report by JLL, this surge was led by mid-segment brands, which gained a significant share of 40 per cent, followed by value segment brands at 38 per cent. This underlines the strong growth potential in India's fashion retail market.
The report further said that the organized retail market has witnessed a positive outlook post-COVID-19, with the sector witnessing the initiation of new infrastructure development in urban centers and emerging cities. 1.1 million square feet of retail space was leased in the first quarter (January–March) of 2024.The surge was mainly led by mid-sized brands, which gained a significant share of 40 per cent, followed by value segment brands at 38 per cent.
After fashion and apparel, the food and beverage sector also witnessed significant growth, contributing 21 per cent to the leasing activities.
The report said experiential dining brands account for an impressive 38 per cent share in the F&B segment.
The report said that in the first quarter of the current year, the share of domestic brands in leasing activities was 76 percent. But most of these stores are multi-brand brand outlets (MBOs) which are also facilitating the entry of global beauty and cosmetics brands into the Indian market.Additionally, seven foreign brands also chose to set up their first outlet in India, with Mumbai and Delhi NCR emerging as the top choices. Most of these brands belonged to the beauty and cosmetics sector, which has grown at an unprecedented rate in recent years.
“The organized retail market in India has seen a surge in new growth over the last few years, led by an increased pace of launches in urban centers and emerging cities. This has pushed retailers to expand their footprint into new micro-markets. has brought them closer to consumers,” said Rahul Arora, Head of Office Leasing & Retail Services, India and Senior Managing Director (Karnataka, Kerala) at JLL.The report further states that vacancy levels are low in top quality retail centres. “In high-quality retail centres, vacancy levels remain low, around 6 per cent. However, the average retail development experiences high vacancy rates of around 20 per cent. There are now opportunities to revive non-performing and poorly managed retail developments. Efforts are underway, said Dr. Samantak Das, chief economist and head of research and REIS, India at JLL, adding, "Some are being renovated or converted to meet the emerging demands of the market."
Prime retail locations with high footfall remain in strong demand across the country, as both international retailers and major national brands cited in the report demonstrate strong appetite for better-class retail developments.
According to a report by JLL, this surge was led by mid-segment brands, which gained a significant share of 40 per cent, followed by value segment brands at 38 per cent. This underlines the strong growth potential in India's fashion retail market.
The report further said that the organized retail market has witnessed a positive outlook post-COVID-19, with the sector witnessing the initiation of new infrastructure development in urban centers and emerging cities. 1.1 million square feet of retail space was leased in the first quarter (January–March) of 2024.The surge was mainly led by mid-sized brands, which gained a significant share of 40 per cent, followed by value segment brands at 38 per cent.
After fashion and apparel, the food and beverage sector also witnessed significant growth, contributing 21 per cent to the leasing activities.
The report said experiential dining brands account for an impressive 38 per cent share in the F&B segment.
The report said that in the first quarter of the current year, the share of domestic brands in leasing activities was 76 percent. But most of these stores are multi-brand brand outlets (MBOs) which are also facilitating the entry of global beauty and cosmetics brands into the Indian market.Additionally, seven foreign brands also chose to set up their first outlet in India, with Mumbai and Delhi NCR emerging as the top choices. Most of these brands belonged to the beauty and cosmetics sector, which has grown at an unprecedented rate in recent years.
“The organized retail market in India has seen a surge in new growth over the last few years, led by an increased pace of launches in urban centers and emerging cities. This has pushed retailers to expand their footprint into new micro-markets. has brought them closer to consumers,” said Rahul Arora, Head of Office Leasing & Retail Services, India and Senior Managing Director (Karnataka, Kerala) at JLL.The report further states that vacancy levels are low in top quality retail centres. “In high-quality retail centres, vacancy levels remain low, around 6 per cent. However, the average retail development experiences high vacancy rates of around 20 per cent. There are now opportunities to revive non-performing and poorly managed retail developments. Efforts are underway, said Dr. Samantak Das, chief economist and head of research and REIS, India at JLL, adding, "Some are being renovated or converted to meet the emerging demands of the market."
Prime retail locations with high footfall remain in strong demand across the country, as both international retailers and major national brands cited in the report demonstrate strong appetite for better-class retail developments.
