India was identified as the most sought-after market by retailers who are looking to the world's emerging markets to drive the success of their businesses in the future, according to new research by CB Richard Ellis.
New Delhi, India (PRWEB) June 28, 2008 -- India was identified as the most sought-after market by retailers who are looking to the world's emerging markets to drive the success of their businesses in the future, according to new research by CB Richard Ellis. A report by the world's leading commercial real estate services firm has revealed that 40 per cent of retailers expect emerging markets to provide their main source of growth over the next five years, while only a quarter expect to see growth concentrated in their home market.
The Global Emerging Markets Survey (GEMS) explores the views of some 300 retailers worldwide, representing a global portfolio of 25,000 stores, and provides the latest insight into retailer attitudes towards the world's emerging retail destinations.
The report reveals that 27 per cent of international retailers surveyed have opened their first store in India in the last year or are planning to do so imminently. The country is considered particularly attractive because of the size of its market compared to its low presence of international retailers. With foreign ownership rules being gradually relaxed, foreign investment is also now possible, allowing single-brand retailers to own up to 49 per cent of their India operations.
Speaking about the report, Anshuman Magazine, Chairman & Managing Director, CB Richard Ellis South Asia, said, "This report only confirms what we have already known. We are the preferred destination when it comes to retail today among the emerging markets. With a booming economy and increase in spending capacity, more and more Indians are now looking for wider options in retail. In the event that the govt opens up Foreign Direct Investment in retail, number of international retailers will immediately start trickling in. This will lead to preference converting into retailers making investments in India."
Ukraine and Russia also ranked highly in the survey, in second and third positions respectively. Ukraine, in particular, benefits not only from its own rapid economic growth but also from its proximity to Russia. GEMS reinforces the trend for retailers, who have established a presence in a 'primary' emerging destination such as Russia, to regard smaller neighbouring countries as natural geographic extensions to their current store network. While Moscow has recently enjoyed heightened attention from retailers due to booming consumer spending, the focus is now shifting to secondary Russian cities and to Ukraine. Another example of this primary/secondary behaviour is retailers who first entered Singapore now moving into Malaysia, which ranks fourth in the list of most sought-after emerging markets.
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