CBRE explores reasons restricting global retailers’ India plans

While studying 317 leading global brands across segments and regions, CBRE found

out that reasons like restrictions in foreign investment in multi-brand retail and lack of quality real estate space have prevented over 39 percent of global retailers such as 7Eleven, Costco and FamilyMart from entering India. Out of the 317 labels, it researched only 196 are currently operational in India.

According to Anshuman Magazine, Chairman and Managing Director of CBRE South Asia, the country holds immense potential due to its strong domestic consumption and low-rate of market penetration by international retailers and with signs of improvement in economic and political environment, now is the right time for international retailers to explore India for business expansion. According to the survey, most global retailers active in India are in the fashion and apparel, accessories, and F&B categories.

The report, 'Expanding Horizons of Global Retailers in India' said majority of the international retailers surveyed opted to enter India by opening a store in a metropolitan city, such as New Delhi (79 percent) or Mumbai (68 percent), before gradually expanding their footprint to other tier I locations, including Bangalore, Chennai, Hyderabad, Kolkata and Pune.