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The survey was conducted by London-based C B Richard
Ellis, a leading real estate services firm, to get latest insight into
retailer attitudes towards the world's emerging retail destinations.
The report indicates that 40% of the surveyed retailers
consider emerging markets to provide their main source of growth over
the next five years. India is considered particularly attractive because
of the size of its market compared to its low presence of international
retailers.
'With foreign ownership rules being gradually relaxed,
foreign investment is also now possible, allowing single-brand retailers
to own up to 51% of their India operations,' notes the report.
Ukraine, Russia, Malaysia and Turkey followed India
in this ranking. 27% of the surveyed retailers opened their first store
in India last year or are planning to do so soon; the respective percentages
for these countries were 24, 22, 19, and 15.
Neighbouring China and Pakistan were ranked 8th (11%)
and 11th (6%) on the list.
Among the factors influencing entry in the emerging
markets, 56% consider availability of suitable property, compared to 46%
in developed markets.
Additionally, the presence of a franchise or local partner
is another key consideration, as this can help foster rapid market penetration,
says the report.
Rising interest and growing expansion into emerging markets
globally is being fuelled by rapid growth in consumer spending and the
'emerging middle class' in many of these countries. "We believe India
will maintain its position as a popular new location for retail expansion,
as further trade restrictions are lifted," says Peter Gold, Head
of Cross Border Retail, CB Richard Ellis.
Wine Sales Through Retail Destinations
The survey holds a lot of significance for further expansion
of the Indian wine industry and the value-for-money low-priced foreign
wines. With growing liberalisation in various states in allowing the sale
of wine and beer through retail, this segment offers excellent growth
potential.
Foreign wine companies are getting geared to the changing
phenomenon. Next month a group of various Italian wine co-operatives which
are popular and powerful in the supermarket wine section, is coming to
India as a part of the delegation to meet other importers, the potential
retailers to look at the possibilities of long term collaboration.
Says Rajeev Samant, CEO of Sula Vineyards," "There's
no doubt that this is one of the most exciting frontiers for "Modern
Retail". It would be even more exciting, however, if the Centre did
away with its rule restricting FDI only to single-brand retail. If that
happens, the subsequent retail boom will be one of the largest the world
has seen, and would create huge employment and opportunity."
Dharti Desai, CEO of Mumbai based import firm FineWinesNMore
is equally optimistic. She says, 'I believe India will be the next big
subscriber to more direct channels like aesthetically appealing wine outlets
in big retail stores-such as Nature's Basket from Godrej in Mumbai. Indian
consumers are hungry for an education that caters to their aspirational
lifestyle which these attractive retail stores could provide too.'
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