New Delhi: India's rapidly growing organised retail sector offers a potential opportunity of up to USD 80 billion for both domestic and international retailers, says CBRE.
The real estate consultancy, which launched its advisory services for organised retail in India today, said the segment is likely to account for 18-20 per cent of the total retail sector by 2020.
"India's retail market is expected to grow to USD 1.1 trillion by 2020, driven by income growth, urbanisation and attitudinal shifts," CBRE said in a statement. The organised retail sector, estimated to reach 18-20 per cent of the total sector by 2020, is growing at a high rate of 20-25 per cent per annum.
"Accordingly, CBRE sees a potential of targeting an organised market of USD 70-USD 80 billion currently, which comprises organised Indian and international retailers who are operating in India or are evaluating entering India," it said.
CBRE Chairman, India and South East Asia Anshuman Magazine said India has witnessed a change in consumption patterns which has been driven by increased urbanisation, expansion of the middle class and 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," he added.
Magazine said the company's advisory services will help its clients make the right decision - whether they're evaluating entry into India, a new location or an investment opportunity.
CBRE said it is aiming 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 said it would 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, it said. Over 40 major international brands have entered the country over the last two years, CBRE said.
