International brands share in retail leasing going up
According to an analysis by CBRE, retail leasing by international brands was 25% during Q1FY 24 compared to 14% same quarter last year. While homegrown retailers including Aditya Birla, Reliance and Tata opened stores aggressively, the surge in global brands leasing were from both existing retailers as well as newer entrants. Retailers leased 1.3 million sq ft, primarily driven by fashion and apparel with a 38% share while food and beverage sector accounted for an 18% share.
Both luxury and home and department store sectors held an 11% share, while consumer electronics sector accounted for 7% of the leasing. During the period, the share of leasing was led by domestic firms (75%), followed by retailers from APAC (12%), Europe, the Middle East and Africa (EMEA) — 10% and America (3%).«We anticipate the entry of more international brands likely across categories this year, with the luxury segment also expected to witness growing traction. With one of the highest growth rates, India has been a destination of choice for brands across EMEA and APAC, and a few American brands have been eyeing the thriving retail market share consistently for the past few years,» said Anshuman Magazine, Chairman & CEO — India, South-East Asia, Middle East & Africa, CBRE.
About two dozen international brands are expected to enter India with their stores this year encouraged by a post-Covid consumption surge, property consultants said. Experts said that's up from one global brand in 2020, three in 2021 and 11 in 2022. Before the pandemic, about 12-15 brands used to enter India every year.
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