INDIANS LOVE SHOPPING
MAPIC India, formerly known as the India Retail Forum (IRF), leads retail businesses into a realm of education, expansion, and purchasing, while also providing a view into the future of retail and retail real estate. The MAPIC India conference 2023, an underlying subject of experiential retail, is a tribute to the altering nature of customer interactions and retail locations.
The MAPIC India conference two-day event, was spread over numerous experience zones, provided an exclusive chance for everyone in attendance, from budding retail businesses to important industry leaders, to meet and connect with the appropriate people. The event also included two of the country’s most prestigious retail prizes, the MAPIC India Retail prizes and the MAPIC India Retail Tech Awards, which honoured success in all key categories of contemporary retail in India in the presence of luminaries from across the world.
Retailers, local and regional governments, investors, developers, brokers and asset managers, master-franchise, service providers, broad conference programme, range of networking events, current news and fresh views in international retail real estate were among the exhibitor product profiles.
The main annual event, Innovation Forum, co-located with MAPIC India, showed the future of retail Digitech solutions to decision-makers. It brought together thousands of influential buyers and solution suppliers.
At the MAPIC event in Mumbai, Deloitte India and the Shopping Centre Association of India (SCAI) jointly presented a survey-based research titled “Recognising malls and shopping centres as a new-age industry.” According to the survey, malls and shopping centres make for a sizable portion of the organised brick-and-mortar retail industry. This category is likely to develop rapidly, with a projected 17 percent CAGR from 2022 to 2028, exceeding total retail growth.
According to a Deloitte-Shopping Centre Association of India (SCAI) analysis, the shopping centre business would develop at a 17% annual rate between 2022 and 2028, emerging as a catalyst for economic growth.
According to a survey-based joint analysis by Deloitte India and the Shopping Centre Association of India (SCAI) titled “Recognising malls and shopping centres as a new-age industry,” private consumption in India is predicted to climb to US$ 4.5 trillion by the end of the decade.
According to the analysis, from 2022 to 2028, this sector would surpass the entire expansion of the retail industry, increasing at a predicted 17% compound annual growth rate (CAGR).
The Deloitte analysis on shopping malls in India, around 60 shopping malls totaling 23.25 million square feet are scheduled to open in the top seven cities of India between 2023 and 2025. Ten million square feet are scheduled to be active in 2023, with 25 new malls hitting the market throughout India’s top seven cities. This new supply will require a Rs 250 billion investment.
Commenting on the launch, Rajat Wahi, Partner, Deloitte India, said, “As India sets its ambitions to head towards a US$5 trillion economy, the potential role of shopping centres in our nation’s growth has to be emphasised. Through the findings of this joint report, Deloitte and SCAI have attempted to illustrate the potential that this Industry holds.”
“In addition to generating revenue for the economy, shopping centres also contribute to the development of the country’s social infrastructure and give both foreign and native businesses a platform to access the Indian market. These centres serve as essential catalysts for India’s economic change,” he added.
Mukesh Kumar, Chairman of Board of Directors, Shopping Center Association of India (SCAI) said “Growth of Retail and Shopping Center industry over the 10-15 years has been phenomenal. Shopping Centers has turned out to be a catalyst for retail growth in the country. Developers have been very bullish about developing malls not only in Tier 1 and tier 2 cities but also moving to tier 3 & 4. With 275 to 300 million sq ft already operational and another 35-40 million sq ft getting operational in the next 18-24 months, the industry is adding quite a lot to the economy. It is very important to highlight the strengths of this industry and how it is adding to the growth of India story. White paper is an attempt to highlight some of the salient features.”
Consumers in tier 2 and 3 cities also want to enjoy the similar lifestyle as those in metro cities and hence over the next 10 years, food space will see a lot of casual dining, said Riyaaz Amlani, founder, Impresario Entertainment Hospitality that runs Social, Smoke, House Deli, Salt Water Café, Mocha, BOSS Burger and Slink & Bardot. According to their survey conducted in 2019, Indians going out for food had rose to 18 times a month from four times in 2011 compared to 72 times a month in Singapore.
Shailesh Chaturvedi, MD and CEO, Arvind Brands, and MAPIC India Chairman, pointed out that India’s retail universe will have to re-invent to remain relevant to occupy the share of the consumer’s wallet and his or her mind-space. “Consumers have the option to get distracted and hence we need to offer a differentiating offering,” Chaturvedi said.
Venu Nair, advisor and ex-CEO and MD, Shoppers Stop, said that digital adoption got fast tracked by the consumers due to COVID and the attention span of the customer has gone down. Spending three hours at the store is fine, but keeping the customer occupied for three minutes at the cash counter is a challenge. Allow the customer to initiate his shopping online and facilitate him to complete his journey at the store, by upgrading technology at the back-end in the store, Nair added.
According to a study issued by JLL at the MAPIC India conference, India’s brick and mortar retail industry is rebounding back, with robust leasing activity of 3.16 million square foot (msf) recorded in the first six months of the current calendar (H1 2023). Leasing activity in the retail sector was thought to have decreased during and after the pandemic, as digital consumption increased.
According to a survey issued by JLL at the MAPIC India conference, India’s brick and mortar retail sector is rebounding back, with robust leasing activity of 3.16 million square feet recorded in the first six months of the current calendar year till June 2023.
Dr Samantak Das, chief economist and executive director, research and REIS, India, JLL, said, “Shopping mall stock as of first half of calendar year 2023 was 89 msf with expected supply pipeline of over 38.04 msf of retail developments between H2 2023 and 2027 taking the tally to 127 msf by the end of 2027.” Food and beverage (F&B) along with apparel occupied over 51% of the gross leasing activity, Das added.
MAPIC India has been a guiding light to a hopeful future for retail industry players in a market noted for its quick expansion and transition. It has continually shown to be an invaluable knowledge and networking tool for the whole retail ecosystem, not only retail businesses and real estate stakeholders. MAPIC India has been essential in assisting partners and participants as the sector prepares for the exciting times ahead.
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