These emerging cities are emerging as lucrative as retailers/brands are attracted by the increasing incomes and rising brand awareness among consumers there.
For retail players, stagnation and obsolescence are two sides of the same coin. Though expansion is often a challenge in a curtailed economic environment, it is nevertheless a necessary function for success. Retailers who wait too long to expand into new territories, or are content to stay where they are, are missing the growth wave and will eventually lose their market relevance.
As such, all Indian and global retail brands operating in India have plans to expand into cities where economic momentum is picking up. In these cities, most local retailers already have a footprint, but branded national and international brands also have their sights trained on these emerging cities.
The upcoming cities that retailers are considering with increasing seriousness today are:
These emerging cities are emerging as lucrative as retailers/brands are attracted by the increasing incomes and rising brand awareness among consumers there. Also, a substantial number of shopping malls are being planned or are already under development in these cities. Sales in the modern retail stores in these cities are quite encouraging, and this is paving the way for the establishment of even more organised retail.
- Indore: Traditional high streets still dominate Indore's retail landscape. However, high street retail is gradually yielding market share to organised retail with the arrival of new malls and shopping centres in the city. M.G Road along with Jawaharlal Nehru Road was traditionally Indore's retail hub before the emergence of markets adjacent to Palasia Chauraha and Bombay Hospital.
- Kochi: Retail activity in Kochi has traditionally been concentrated on a central high street, with M.G Road being the dominant retail corridor. The other emerging retail destinations in Kochi include Marine Drive, Vytilla Junction, Palarivattam and Edapally. Shopping malls are also emerging in areas such as Maradu and Edapally. The Upcoming mall developments include Lullu Mall, among others.
- Ludhiana: Ferozpur Road is the main growth corridor for retail in Ludhiana; consequently, it has seen the highest incidence of major organized retail developments with Ansal Plaza, Flamez Mall and Westend Mall. Over time, various national and local developers have entered the market - these include Ansal API, DLF, MBD Group, Omaxe and Chadha Group.
- Jaipur: Jaipur has progressed tremendously on the retail front, and is considered one of the most important emerging retail destinations of North India. It has shopping malls with multiplexes operational at various locations in the city. Organised retail has come up and is proliferating in areas such as Tonk Road, Malviya Nagar and Ajmer Road, among others.
- Udaipur: The traditional retail destinations of Udaipur include Bapu Bazaar, Chetak Circle, Suraj Pole, Nehru Bazaar, Bada Bazaar and Chand Pole. Organised retail is also widespread throughout Udaipur, with Durga Nursery Road, Shakti Nagar and Sudkhadia Circle having the largest concentration of new entrants. Shopping mall developments are beginning to make their presence felt in Udaipur, in light of the growing demand among local consumers for a modern shopping experience.
- Nagpur: In Nagpur, unorganised retail has more or less always existed in areas such as Itwari and Sitabuldi, and in western part of the city. The city’s established prime retail areas include Dharampeth, Ramdaspeth, Gokulpeth, Central Avenue, Gandhibagh and Sadar. Shopping malls are also operational in Nagpur, and a lot of retail brands are entering there. Presently, Central Nagpur is a noteworthy retail destination in terms of shopping mall developments - however, both West and South Nagpur are rapidly emerging as the next generation retail hubs.
High Street (GF Rentals on Carpet Area)
Mall (GF Rentals on Carpet Area)