New Delhi: Delhi has emerged as the top shopping destination for global and domestic brands, with 57 malls spread over more than 11 million sq ft, a report said on Friday.
A detailed report -- What Makes Delhi?s Retail Market Tick? -- was released by CBRE India Research at CII Delhi Retail Summit 2015 held here today.
"The past decade has been instrumental in shaping retail dynamics in the city; from just one shopping mall in 1999, Delhi currently houses almost 57 mall developments spread over more than 11 million sq ft," said Vivek Kaul, Head, Retail Services India, CBRE South Asia Pvt.
Factors such as a large population base, high propensity to spend as well as a more developed intra-city transit network have contributed significantly to the evolution of the retail market in the capital, Kaul said.
The report discusses multiple factors for the success of the leading malls in Delhi -- including the convergence of food and beverage (F&B) retail brands in the city -- and how online shopping has taken on traditional retail.
Above all, the report examines the strategies adopted by retailers and shopping centres in the capital to remain relevant in an ever-changing retail marketplace.
"From being a largely unorganized market with most retail activity being concentrated across its high streets to becoming the top city in India in terms of global retailer activity, Delhi's retail market has come a long way," Anshuman Magazine, CMD, CBRE South Asia Pvt said.
The rising prominence of India's capital city as an attractive retail destination can also be gauged from the fact that nearly 120 global brands have chosen it since 2012, Magazine added.
An emerging trend that most Indian consumers have been embracing in recent times is online shopping. Retailers have been adopting innovative business models often by leveraging their physical stores while extending promotions and sales across Internet portals, the report said.
Online players, for their part, have been trying to leverage the advent of technology to their advantage. They have been investing heavily in developing applications for websites in expectations of generating maximum sales through mobile platforms.
The report closely examines the F&B segment in the capital. Innovative F&B concepts have emerged in recent years, even as retailers try to circumvent challenges of lack of investment grade space and high real estate costs in the city.
Despite these challenges, however, the Delhi F&B market provides significant growth opportunities and operators are willing to take on these challenges to leverage the same, it said.