60% of all global retailers have market presence in the country.
By The American Bazaar Staff
NEW DELHI: A new report from CBRE India indicates that US brands control about 30% of the market for international brand-name merchandise throughout the country.
The report, released earlier this month from New Delhi and entitled “Expanding Horizons of Global Retailers in India,” says that about 60% of all global retailers currently have a market presence in India, making the 30% figure for the US significant.
By representing nearly a third of all foreign products sold in India, US brand-name companies beat out those from Italy and the UK, whose companies placed at numbers two and three, respectively, with 19% and 16%. Products from France came in at #4, with 10%, and Germany rounded out the top five with an 8% market share.
“The expanding retail footprint of global brands in India has been a major growth driver of retail real estate in the country,” says the CBRE India report, which analyzed “brands across segments were analyzed in the luxury, premium and high-end categories; and their presence judged on the basis of standalone stores within malls as well as high streets.”
Most of the US products that make up its 30% market share are in the food and beverage industry, while those coming from Italy and the UK are, understandably, in the domain of luxury items like high-end bags, cars, furniture, and so on. Most of the boutique brands sold worldwide come from these two nations.
Cities have the highest concentration of foreign brands, particularly New Delhi, Mumbai, and Bangalore. Other cities with significant foreign retail penetration are Hyderabad, Ahmedabad, Kolkata, Chandigarh, Jaipur, and Pune.
“Fashion accessories, F&B, and beauty and cosmetics happen to be the most penetrated retail segments in terms of the presence of global brands in India; while hypermarkets are the least penetrated, largely due to the legislative barriers imposed on the category,” said the report.
“Most international retailers incorporated in our study have, interestingly, adopted either of the two entry routes—franchisee or joint venture—creating strong linkages with domestic operators, utilizing local market expertise to guide their business operations in India,” it added.
This post first appeared in americanbazaaronline.com