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What Makes Delhi’s Retail Market Tick?

Knowledge Partner

JULY 2015

Delhi Retail Summit 2015 - Background PaperCBRE INDIA RESEARCH

Contents1 ExecutiveSummary

2 RetailOverview–Delhi

3 What’sCookinginDelhi’sShoppingCauldron?

4 EmpoweringBrandsandShoppersThroughTechnology

5 Footnotes

6 AboutCBRE

7 AboutCII

Executive Summary

RetailEvolutioninDelhi

FrombeingalargelyunorganizedmarketwithmostretailactivityconcentratedacrosshighstreetstobeingthetopcityinIndiaintermsofglobalretaileractivity,Delhi’sretailmarkethascomealongway.Thepastdecadehasbeeninstrumentalinshapingretaildynamicsinthecity;fromjustoneshoppingmallin1999,Delhicurrentlyhousesalmost57malldevelopmentsspreadovermorethan11millionsq.ft.Factorssuchasalargepopulationbase,highpropensitytospend,mallsbeingconsideredas“lifestyledestinations”,aswellasarelativelymoredevelopedintra-citytransportnetworkhavecontributedsignificantlytotheevolutionofretailinthecity.Thebrandmixhasalsoevolvedconsiderably—frombrandssuchasBata,Raymond’sandsomehome-growndepartmentchainstoglobalbrandssuchasGap,Zara,Mango,TomFord,LouisVuitton,Burberry,amongstothers.TherisingprominenceofIndia’scapitalasanattractiveretaildestinationcanbegaugedfromthefactthatmorethan118globalretailershaveeitherenteredorexpandedinthecitysince2012.Theluxurysectorhasalsobeenexpandingitswingsinthecity,withalmost12luxurybrandssuchasBvlgari,RobertoCavalli,ChristianLouboutinhavingenteredthecitysince2012.

RetailSpreadandDynamics

TheretailmarketinDelhiissplitacrossfourzones:East,West,NorthandSouth.SouthDelhihasthehighestconcentrationofmallsinthecityaccountingforapproximately38%ofthetotalorganizedretailstock.Themicro-marketnotonlyhasthehighestorganizedstock,butalsothehighestpercentageofprimeinvestmentgrademalls(73%),therebyjustifyingitspopularityamongretailersandconsumersalike.Mostoftheseprimedevelopmentsfollowtheleaseonlyoperationmodelandemploystrategiessuchefficientmallmanagement,supportfacilitiesaswellasflexibleleaseagreementsthatallowthemtooperateinaproficientmanner.Otherstrategiessuchasseasonalthemes,pop-upstores,innovativetechniquestolaunchproductsandcustomerengagementviasocialmediaarealsobeingfollowedtoensurebettervisibilityandhigherfootfalls.Thisleavesalottobelearntforalargemajorityofotherretailmalldevelopmentsinrestofthecitythathavebeenoperatingonthestrata-salemodelandarenotproactivelyundertakingtenantprofilingandzoning.ThereportdiscussesastowhatmakesleadingmallsinDelhitickandwhatstrategiescanbeadoptedbymallstoremainrelevantinaneverchangingretailmarket.

TheF&BNucleus–Delhi

TheFoodandBeverage(F&B)sceneintheCapitalhasalwaysbeenvivacious,howeverthepastfivetosixyearshaveseenasignificantchangeinthewayDelhi’srestaurantslookandserve.Innovativeconceptshavemushroomedalloverthecitywitheachnewrestauranttryingtoexperimentandoutshineotheroperators.Customersarenolongersatisfiedwithjustgoodfoodbutalsodemandotherelementssuchasambience,entertainmenttobeintegratedwithintheirF&B“experience”.Finedining,internationalconfectionaryandbars,whichusedtoberestrictedtofivestarhotelsalone,havetodayspilledontohigh-streetsandshoppingcenters,whicharelinedwithstandalonecasualdinerestaurants,pubs,sportbars,lounges,nichebakeries,cafes,etc.AslucrativeastheDelhiF&Bmarketis,ithowevercomeswithitsshareofcomplexitiesandchallenges.Operatorsareposedwithquestionssuchashowmanyoutletstolaunch,whichmicro-markettooperatein,whichexpansionstrategytoadopt,whethertobelocatedonahighstreetorinamall,amongothers.Theyarealsodevisingwaystocircumventchallengessuchaslackofinvestmentgradespace,F&Bcompatiblespace,tailoringtheirmenuasperIndiapalates,amongstothers.Despitethesechallenges,theDelhifoodmarketprovidessignificantgrowthopportunitiesandoperatorsarewillingtotakeonthesechallengestoleveragetheopportunities.

© CBRE Ltd. 20151 | DELHI RETAIL SUMMIT 2015 - BACKGROUND PAPER

TechnologyandRetail–IncreasingLinkages

From200millioninternetusersin2013toover500millioninternetusersby2017—including314millionmobileinternetusers—thegrowthstoryofinternetusageinIndiaisontheupsurge*.Asaresult,e-retailhasgainedmomentumwiththewidespreaduseoftechnologyacrossageandincomegroups,impactingconsumer–retailerdynamics.OnlineshoppinghasgainedsteamclearlyelucidatedbyCBRE’sconsumersurvey,‘How We Like to Shop – 2015’where78%oftherespondentsadmittedtoshoppingonlineatleastonceamonth.Withalargemajorityoftherespondentspreferringtouseonlineplatformsmoreofteninthecomingyears,ithasbecomeclearthattechnologyispoisedtoplayalargerroleinshapingretaildynamicsinIndia.

Onlineplayershavebeentryingtoleveragetheadventoftechnologytotheiradvantage.Theyhavebeeninvestingheavilyindevelopingapplicationsfortheirwebsitesinexpectationofgeneratingmostoftheirsalesthroughmobileplatforms.Asalmost76%oftheconsumersinoursurveyadmittedtousingsocialmediatoupdatethemselvesonschemesatshoppingcenters,socialmediaisbeingusedasakeycustomer-engagementtool.

Whileonlineretailersarereliantontheuseoftechnologyfortheirbusinessestogrow,evenbrick&mortarstoresareadoptingtechnologytobeanintegralpartoftheirbusinessmodel.Theyear2014alonesawatleast18globalbrands(alreadyestablishedwithbrick&mortarstores)movingonline,includingbrandssuchasMango,Aldo,Superdry,Nautica,TommyHilfiger,NineWestandSteveMadden.Playersarealsoadoptingthe‘Omni-channel’withservicessuchasbuyonlineandcollectin-store,acceptcustomerreturnsandrefundsforproductsboughtonline,storekioskforbrowsingandpaymentforproducts.OtherinnovationssuchasmobilewalletsandQRcodesarebeingusedtomaketheshoppingexperienceseamless.Someglobalinnovationssuchasuseofsocialmediaresponsetoin-storeproductstodrivesales,enrichingtheproduct-trialexperience,customercrowdsourcingandusingdataanalyticstopersonalizecustomerexperiencearetechniquesthatarelikelytopavewayforgreateruseoftechnologyintheretailindustryasawhole.Thepapertouchesuponthesetopicsindetailanddiscussesthewayforward.

* Internet and Mobile Association of India (IAMAI)

© CBRE Ltd. 2015 DELHI RETAIL SUMMIT 2015 - BACKGROUND PAPER | 2

Retail Overview – Delhi

EvolutionoftheNationalCapitalfromjustaPoliticalPowerhousetoaShoppingDestination

Overthepasttwentyyears,Delhihasevolvedfrombeingthechiefpoliticalcentertoamajorhubforretailandotherservicesindustries.Tillthe1990s,theIndianretailmarketwasprimarilyunorganizedanddominatedbytraditional,neighborhoodretailersor'kirana'(Mom&Pop)stores.Mostoftheretailstoresinthecountryweresmall,family-runbusinesses,predominantlyrelyingonhouseholdlabour.Organizedretailwasvirtuallynon-existent;andtheonlyorganizedretailthatexistedwerefashionapparelstoressuchasRaymondsandNalli’s,allofwhichoperatedthroughtheirexclusivebrandoutlets(EBOs)orfranchiseeoutlets.Itwasonlyduringthe1990sthatthewaveofliberalizationandprivatizationusheredinnewretailformats,pavingthewayfororganizedretailerssuchasShoppersStop(1991)andPantaloons(1997),amongothers.Movingawayfromthetypicallandscapeofstand-alonestores,agradualimprovementwaswitnessedwiththeintroductionofthesedepartmentstores.Whiledepartmentstoresdidprovideabetter“onestopshop”experience,bulkofthecity’sshoppingactivitywaslimitedtothehighstreetssuchasConnaughtPlace,LajpatNagarandSouthExtension,clearlyhighlightingthelackoforganizedshoppingcenters,comparedtootherdevelopedmarketsacrosstheglobe.

ThedevelopmentoforganizedretailinDelhibeganwiththecommencementofAnsalPlazaonKhelGaonMargin1999.TheDelhiDevelopmentAuthorityauctionedlandparcelsfordevelopmentofdistrictcentersinthecity,suchasSaket,VasantKunj,NetajiSubhashPlaceandShivajiPlace;eventuallyleasingtoaspurtinorganizedretaildevelopmentoverthenextdecadeandtheriseof‘mallclusters’—aphenomenonparticularlyprevalentinthecity.Oncetheinitialsetofmallsbeganattractingconsumerfootfallsandretailerinterest,developersstartedapplyingdifferentiationtechniquestoensureenhancedfootfallsandbiggercatchments.TodayDelhihasemergedasthetopchoiceformostglobalretailersplanningtoenterthecounty.ItboastsofawidespectrumofbrandsrangingfromaSplashtoaZaraandaBurberry.DiningchoicestoohavebecomesophisticatedwithoptionsrangingfromMcDonaldsandStarbuckstoChilli’sandRobertoCavalliCafé.

WhyDelhi?

StrongPopulationBase:Withapopulationof17.2millionin2013-141,Delhihousesoneofthelargestpopulationbasesinthecountry,faraheadofevenleadingcitiessuchasMumbai(12.5million)2andBangalore(9.5million)3.Retailersinthecityhaveeasyaccesstoanexistinglargecatchment,besidesaninfluxoftouristsandexpatriates.ThecityalsoservesasabasetoexploreNorthIndia,besideshavingestablishedcommercialhubsandpremiumeducationalinstitutions(thatpromotetheinfluxofstudentpopulation).

HighPropensitytoSpend:Thecity,despitehavingsimilarlevelsofanaveragehouseholdincomeofaboutINR1millionp.a.ascomparedtoMumbai(INR1.2millionp.a.)andBangalore(INR1.1millionp.a.),hadthehighestannualhouseholdexpenditureofabout21.6%in2013-14onfood,clothingandfootwearascomparedtoothermetropolitancitiesofMumbai(17.7%)andBangalore(12.9%)4.

1. Indicus Analytics, 2013-142. Indicus Analytics, 2013-143. Indicus Analytics, 2013-144. Indicus Analytics, 2013-14


Mallsarea‘LifestyleDestination’:TherehasbeenanemergingtrendintheNationalCapitalRegion(NCR)ofmallsbeingperceivedasentertainmentdestinationsratherthanjustshoppingcenters,leadingtorisingfootfalls.Thebrandmixofsuccessfulmallshasthusgonebeyondthetraditionalcombinationofsegmentssuchasapparel,accessoriesorfootwear;andhasevolvedintoincludingexperientialsegmentssuchasgyms,spas,salons,andgamingcentersaswell.

FavorableGeographicalLocation:LocatedinproximitytoprominentcitiesofPunjabandHaryana,suchasLudhiana,AmritsarandChandigarh,allowsretailerstocatertoawiderpopulationfromastoreinDelhi.Leadingapparelbrandsandmorespecificallyluxurybrandsareabletoleveragethisfactortotheiradvantageduetothenoveltyfactorwhileenteringthecountry.

ConnectivityandTransitSystems:Excellentconnectivitywithinthecityviatheroadandmetrorailnetworkhasaccentuatedtheeaseofshoppingacrossretaildestinations,attractingmassesfromthesuburbanlocationsofGurgaonandNoida.Connectionofmostshoppingdestinationswiththemetrosysteminparticular—regardedasoneofthesafestmodesofpublictransportinthecapitalcity—hascontributedtohigherfootfalls,attractingcrowdsofcollegiateacrosstheNationalCapitalRegion.

MallClusters:Thecityhas‘mallclusters’asauctionoflandbytheDDAledtoseveralmallscomingupnexttoeachotherinVasantKunj,SaketandRajouriGarden.Thesemallstendtoattracthighfootfallsastheyallowconsumerstoaccessalargersetofbrandsascomparedtovisitingasinglestand-alonedevelopment.Thisalsoallowsretailerstogainbettervisibilityandtargetalargerpopulace,leadingbrandstovieforspaceintheseclusters.


GlobalRetailersThrongtheCity

ThepopularityoftheCapitalasaretaildestinationisdemonstratedbythefactthatmorethan30globalretailers—includingGap,Sephora,Hackett,Crabtree&Evelyn,DunkinDonuts,andBrooksBrothers,amongothers—havingchosenitasanentrypointintothecountryoverthelastthreeyears.Therehasbeenarisingincidenceoffashionbrandsexpandingwithinthecity,withbrandssuchasZara,Mango,Aldo,Promodopeningmorethanonestorewithinthecity.WhileglobalbrandsfromF&Bandfashionapparelsegmentsdominatetheretaillandscape,thecityhaswitnessedasmallbutsustainedflowofglobalretailersfrombeautyandcosmeticstoelectronicsandothersegmentsinrecenttimes.

Expansion New entry

Entry and expansion of global retailers in Delhi

Source: CBRE Research, Q2 2015.

(Figure 1)

05

1015202530354045

2012 2013 2014 2015 YTD

No. of Brands

Segment wise break up of retailer entry/expansion in Delhi (2012-15)

Source: CBRE Research, Q2 2015. Note: 2015 YTD is till July 2015

(Figure 3)

(%) Share

0%

20%

40%

60%

80%

100%

2012 2013 2014 2015 YTD

Coffee and Restaurants Homeware and Department Stores Luxury and Business

Specialist Clothing Consumer Electronics

Mid Range Fashion

Others

High Street Shopping Centre

Mode chosen by brands for entry/expansion in Delhi


(Figure 2)

% of brands

0%10%20%30%40%50%60%70%80%90%

100%

Expansion New entry

Delhiservesasabaseforentryandexpansionactivityofglobalretailersinthecountry,withmorethan118brandsentering/expandingacrossthecitysince2012.Shoppingcentersemergeasaclearchoiceforglobalplayerswithmorethan70%choosingthesamefortheirentry/expansionactivities.Mostglobalbrandsenteringthecityprefertolocateinashoppingmallandthenevaluateoptionsacrosshighstreetsforexpansionactivity.Thistrendismoreaccentuatedacrossbrandsinthecoffeeandrestaurantssegment.




Mid Range Fashion

Others

Segment wise global retailer entry/expansion inDelhi – High Streets

Segment wise global retailer entry/expansion inDelhi – Malls


(Figure 4)

% Share

0%

20%

40%

60%

80%

100%

2012 2013 2014 2015 YTD

(Figure 5)

% Share

0%

20%

40%

60%

80%

100%

2012 2013 2014 2015 YTD

New Delhi MumbaiSource: CBRE Research, Q2 2015.

(%) Share

0%

20%

40%

60%

80%

100%

2012 2013 2014 2015 YTD

Global Retailer Entry/Expansions over the Years

(Figure 6)

Split of Global Retailer Entry/Expansions (2012-15)

(Figure 7)

NEW DELHI

53%MUMBAI

47%

Theshareofcoffeeandrestaurantsasasegmenthasbeenfastrisingfromlessthan30%in2012tomorethan40%in2014andmorethan50%in2015YTD.Morethan45entries/expansionshavebeenwitnessedinthecitysince2012includingoperatorssuchasWendy’s,Starbucks,BurgerKing,Nandosamongstothers.

HighstreetsinDelhiaredominatedbycoffeeandrestaurantswithnopresenceofluxurybrandsonthesame.Infact,allentries/expansionsin2015tillnowhavebeeninthecoffeeandrestaurantssegment.Ontheotherhand,mallsinthecapitalhaveamorediversemixwithbrandsacrosscategoriesestablishingpresenceinkeyshoppingcenters.

GlobalRetailers-DelhiversusMumbai

DelhiandMumbaiareurbanagglomerationshousingthelargestpopulationbasesinthecountry,at17.2millionand12.5millionrespectively.Notonlydothecitieshavehighpopulationbasesbutarealsohometothewell-heeled,whoareexposedtoglobaltrends;resultingingreateracceptanceofproduct/cuisineofferingsbysuchbrands/operators.DelhihasanaveragehouseholdincomeofaboutINR1millionp.a.whileMumbaihasahouseholdincomeINR1.2millionp.a.;bothbeingthetwohighestinthecountry.SinceDelhiisthenationalcapitalwhileMumbaiisthefinancialcapital,bothcitiesattractconsiderableforeigntouristinfluxaswellasdiplomatandexpatriatepopulation.



Category wise Split of Global Entry/Expansion(2012-2015 YTD) - Delhi

(Figure 8)

Category wise Split of Global Entry/Expansion(2012-2015 YTD) - Mumbai

(Figure 9)

44%

13%

13%

13%

2%



Mid Range Fashion

Others

38%

17%15%

15%

15%

13%

1%1%


Source: CBRE Research.

Coffee and Restaurants Europe Americas Asia Pacific EMEAHomeware and DepartmentStores

Luxury and Business

Specialist Clothing

Consumer Electronics

Mid Range FashionOthers

0

5

10

15

20

25

30

35

40

Mumbai New Delhi

Segment wise break up of New Entrants since 2012

(Figure 10)

No of brands

Country of Origin of New Entrants since 2012

(Figure 11)

(%) Share

0%

20%

40%

60%

80%

100%

Mumbai New Delhi

Whenwecomparebothcitiesintermsofglobalretailerfootprint,Delhileadsintermsofglobalretailerexpansion/entriesofnewentrantssince20125,and2014wasaparticularlygoodyearwithmorethan42leadingbrandsentering/expandinginthecity.

WhilecoffeeshopsandrestaurantsareslightlymorepopularinMumbai,mid-rangefashionbrandssuchasZaraandGAParemorepopularinDelhi,withretailersinthesegmentpreferringtoenterthecountrywithastoreinthecapital.

Delhihasattractedaround35newbrandssince2012,includingthelikesofBvlgari,RobertoCavalli,ChristianLouboutin,LaPrairieandBCBGMaxazria.Ithasalsoattractedthehighestnumberofluxuryentrants(12)inthepastthreeyears.

5. Cumulative entries/expansions since 2012 to 2015 YTD


Source: CBRE Research, Q2 2015. Source: CBRE Research, Q2 2015.

Spatial Spread of Malls

(Figure 12)

Grade-Wise Break up of Malls

(Figure 13)

EAST DELHI

16%

NORTH DELHI

25%

SOUTH DELHI

38%

WEST DELHI

21%

PRIME INVESTMENTGRADE

SEMI INVESTMENTGRADE MALLS

INVESTMENTGRADE MALLS

36%

34%

30%


Grade Wise Split of Malls across Micro-Markets

(Figure 14)

Rentals Trends across Key Markets in Delhi

(Figure 15)

0

1,000

2,000

3,000

4,000

5,000

South Delhi North Delhi West Delhi East Delhi

(000,Sq.ft) (INR/sq. ft./month)

Investment Grade MallsSemi-Investment Grade MallsPrime Investment Grade

0

100

200

300

400

500

South Delhi West Delhi North Delhi East Delhi

OrganizedRetailinDelhi–SpreadandCharacteristics

TheorganizedretailmarketofDelhiiscurrentlyspreadacrossnearly11.4millionsq.ft.withabout57malls/mixed-useprimeinvestment,investmentandsemi-investmentgrademalls#.PrimeinvestmentgradespaceisconcentratedinSouth(SaketandVasantKunj)andWestDelhi(RajouriGardenandShivajiPark).

Ascanbeseenabove,SouthDelhihasthehighestconcentrationofmallsaccountingfor~38%ofthetotalretailstockofDelhi.Themicro-marketnotonlyhasthehighestorganizedstock,butalsothehighestpercentageofprimeinvestmentgrademalls(73%),therebyjustifyingitspopularityamongretailersandconsumersalike.WhileotherlocationsinDelhicatertolocalcatchmentneeds,mallsinSouthDelhiarefrequentedbyresidentsofsuburbanlocationsofGurgaonandNoidaaswell,sincethesemallsserveaslifestyledestinations.

#. Please refer to notes for definitions.



Percentage break up of mall space in Delhi

(Figure 16)

Split of mall space as per operation model

(Figure 17)

(%)SALE + LEASE

22%

SALE

27%

LEASE

51%

0%

20%

40%

60%

80%

100%

LEASE SALE SALE + LEASE

Investment Grade MallsSemi-Investment Grade MallsPrime Investment Grade

SuccessFactorsforShoppingCenters

OperationModelsWhilethecityhasthehighestnumberofshoppingdevelopmentsascomparedtoanyothermetropolitancityinthecountry,almost49%oforganizedspaceinthecityconstitutesofdevelopmentsthathaveadoptedstratasold/sale+leasemodel.Morethan5.6millionsq.ft.ofretailspaceinDelhiisstratasold,impactingthetenantprofileandsuccessofashoppingmallasawhole.

Strata-solddevelopmentshavetraditionallywitnessedchaoticplacementofbrands(dependingonwhicheverbrandleasesspaceofanyindividualinvestor),rentalinstability(differentrentalsquotedbyinvestor/developer)andsubsequenthighvacancylevelsandlowerfootfalls.Almosthalfoftheorganizedspaceinthecityfollowasale/sale+leasemodel,andischaracterizedbyanunfavorablebrandmixleadingtohighvacancies.Almost68%ofthesemi-investment/investmentspaceinthecityfallsunderthesale/sale+leasemodel,highlightingtheinefficienciesoffollowingasalemodel.Thelease-onlymodel,ontheotherhand,hasbeenadoptedby84%ofprimedevelopmentsinthecity,whichhasbeenoneoftheleadingfactorsinthesuccessofthesedevelopments.

FlexibleLeaseAgreementsThenatureofleasetermsbetweentheretailerandlandlordhasevolvedtobemuchmorethanalegalbindingcontractinrecenttimes.Thedaysofleasingspaceforalumpsomeamounthavelonggone,havingbeenreplacedbyadirectlinkbetweenrevenuesgeneratedandrentpaidbytenants.Themostpopularformsof‘revenuesharing’includepayinga‘minimumguarantee’and/ordisbursingapre-decidedpercentageshareofrevenuestothedeveloperonamonthlybasis.Insomecases,developerschargestaggeredrentalswherenewentrantsaresometimesoffereddiscountsintheinitialyear,tobeeventuallymadeupoveracertainperiodoftime.Withthejointinterestoftheretaileranddeveloperinthetenant’srevenues,suchleasetermshavegonealongwayincontributingtothesuccessofmallsovertheyears.

ProvisionofSupportFunctionsProficienthandlingofsupportmalloperationshasalsobecomeincreasinglyimperativeinrecenttimes.PrimemallsofferingservicessuchasanATM,valetservices,feedingroomsandincertaincasesfreeWi-Fi,taxiandpharmacyservices.Consumershavethusbeguntoinevitablyviewvisitingsuchmallsasaformofentertainment,easilyspendingaugmentedtimeinthemall,ultimatelyleadingtoincreasingrevenuesonthebackof‘impulse’purchases.


EfficientMallManagementDiligentmallmanagementandastrategicbrandmixhaskeptmallshighontheradaroftopglobalretailers,severalchoosingtocommenceoperationsinthecountrybyopeninganoutletinthesedevelopments,particularlySouthDelhimalls(inSaketandVasantKunj),whicharetoutedassomeofthebestmallsinthecountry.Mallmanagementteamsatthesemallsdecideonthetenantmix,placementofretailstores,revenuetargetstodecidecontinuationofleaseagreements,andpromotions.Alotofthoughtalsogoesindecidingthebrandmixofthefoodcourt-akeydrawforfamilies.Forinstance,MySquare,thenewlyrenovatedfoodcourtatSelectCityWalkmallhasatouchscreenattachedtoeachtableforordering,keepingatrackoftheorderstatusetc.andhasbeenpositionedasapremiumfoodcourt;therebylikelytoresultingreaterfootfallsforthemall.

StrategiestoRemainRelevantinanEverChangingRetailEnvironment

InDelhi,thesustainedsuccessofdevelopmentsfollowinganoptimizedoperationsstrategyisquitenoteworthy.Moreprecisely,oneshouldcloselylookatthedynamicstrategiesadoptedbythemostsuccessfulshoppingcenterstosustainandfurtherincreasefootfalls.Effectivelyimplementingsimilarconceptscouldcontributetorevenuegrowthofthelesserperformingmallsandprovideashiftinperceptionofthese‘nonpopular’mallsinthemindoftheconsumer.

ExtensiveMarketResearch:Itisimperativethatamallisabletodefinethekindofcatchmentitislikelytocatertoanddecideonitspositioning—mass,affordableluxuryorluxury.Therehastobesynchronizationbetweencatchmentandoccupiermixaswellascleardefinitiononthetypeofmallanditstargetcustomers.Developersneedtobecertainwhetheritwillbeanentertainmentmall,suchasGreatIndiaPlace,Noida,afashionandlifestyledrivenmallsuchasSelectCitywalk,oradestinationmall.Mostmallsareunabletoattractcrowdsbecauseoftheinabilitytodefinethemalltype,lackofinformationonclienttypeandselectionofwrongpartners.IfamallplacesaZarawhilethecatchmentdemandsWestsideorviceversa,themallwillfailtoattractfootfalls.

Seasonal/ThemedEvents:Anemergingtrendofseasonalorthemedeventsheldatmallshasprovedtobeadefiniteattractionforcrowdstopourinduringsuchevents.TheseeventsincludethosecelebratingtraditionalfestivalssuchasDiwali,HoliorChristmas,whereinthecustomerinterestarisesfromretailersnotonlystockingappropriateproducts,butelaboratedecorationsacrossthedevelopmentwhichfeedintoanattractiveenvironment,addingtothefestivemoodofthebuyers.

InnovativeProductLaunches:Sucheventsgenerallyrevolvearoundaparticulartheme,suchastargetingaselectaudience(womenorchildreninparticular)forproductlaunches.Forinstance,eventssuchasthe‘TreasuryofTrousseau’atDLFEmporiowillallowcoutureweddingcollectionsofleadingdesignersattheevent.Selectmallsalsohostseveral‘foodfestivals’orbooklaunchesattheirdevelopments.Theshortintervaloftheseeventsgenerallycontributestoitsnovelty,increasinglyensuingmallvisitsbeingviewedas‘cultural’events.

PopupStores:Implementingtheconceptof‘pop-upstores’oratemporaryshophasalsocontributedtospurtsinrevenuegrowth.Forinstance,DLFPromenadeallowsforpop-upstoresbyonlinefashionretailers,amongstothers.Productsofsuchstoresserveasawelcomedigressionintheregularmerchandiseofadevelopment.Theopportunityforoutletstooperateforashortdurationinprimemallsalsogreatlybenefitsonlineretailersorsmallscaleentrepreneursinexposingnicheproductstoanextensiverangeofshoppers.Furthermore,thesuccessofsuchstoreswidensadeveloper’sexperienceingaugingconsumersentiments,providingabaseforevolvinganimprovedbrandmix.

LeveragingSocialMedia:Anotherdistinguishingfactorofprimemallsistherigorousmarketingandpromotionalstrategiesadoptedbythesedevelopments.Suchmallsrapidlyrecognizedtheimportanceofremainingactiveviasocialmediaforums,therebyprovidingeasyaccesstoanyinformation(events,sales,storelaunches,etc.).Aninteractive,detailedandupdatedwebsite,forexample,easesplannedpurchasingorfrequentingaparticularrestaurantoverhighstreet/stand-aloneplacesonseveraloccasions.Moreover,suchastrategyenhancesthepositioningofadevelopmentasadestinationforothernewretailersduetothemall’sincreasingpopularity.

RegularCustomerFeedback:Mallsneedtocollectfeedbacksfromvisitorstoberelevantinallseasons.Theoperatormustdoextensivemarketresearchandknowthetargetcustomersandbrands.Leadingmallshavemaintainedtheirrelevancethroughsoftservicesandlaunchingnewbrandstokeepcustomerscomingback.Forinstance,primemallsinthecityareabletomaintaintherightbrandmixthatitkeepschurningtostayrelevanttoitstargetcustomers.


HIGH STREETS

1. KAROL BAGH | MAJOR BRANDS: MCDONALDS, SUBWAY, KFC ETC2. RAJOURI GARDEN | MAJOR BRANDS: DUNKIN DONUTS, KFC, SUBWAY ETC3. CONNAUGHT PLACE | MAJOR BRANDS: STARBUCKS, NANDO’S, DUNKIN DONUTS, BURGER KING, ETC4. KHAN MARKET, PANDARA ROAD | MAJOR BRANDS: BARCELOS, HARRY’S, VERO MODA ETC5. BASANT LOK | MAJOR BRANDS: GLORIA JEAN'S COFFEES, LE MARCHE-SUGAR AND SPICE, BARISTA ETC6. SOUTH EXTENSION | MAJOR BRANDS: LACOSTE, TOMMY HILFIGER, MCDONALDS ETC7. M BLOCK GREATER KAILASH | MAJOR BRANDS: ESPIRIT, BENETTON, COFFEE BEAN AND TEA ETC8. HAUZ KHAS | MAJOR BRANDS: SOCIAL, MIA BELLA, THE BEER CAFE9. NEHRU PLACE | MAJOR BRANDS: BURGER KING, STARBUCKS, DUNKIN DONUTS

ORGANIZED RETAIL

1. DISTRICT CENTRES AT SHIVAJI PLACE: RAJOURI GARDEN, SUBHASH NAGAR MALLS: CITY SQUARE MALL, TDI MALL, WEST GATE MALL, PACIFIC MALL | MAJOR BRANDS: ZARA, JACK AND JONES, VERO MODA ETC2. ROHINI AND PITHAMPURA: MALLS: METRO WALK MALL, M2K MALL, D MALL | MAJOR BRANDS: PANTALOONS, REEBOK, NIKE, ETC3. NETAJI SUBHASH PLACE DISTRICT CENTRE: MALLS: PEARLS OMAXE MALL, NORTH SQUARE MALL, D MALL MAJOR BRANDS: HALDIRAM, NIRULAS, KALPANA, ETC4. DISTRICT CENTRE AT VASANT KUNJ: MALLS: DLF PROMENADE, DLF EMPORIO, AMBIENCE MALL, BRANDS PRESENT: LOUIS VUITTON, BULGARI, ZARA ETC5. DISTRICT CENTRE AT SAKET: MALLS: SELECT CITY WALK, DLF PLACE, MGF METROPOLITAN MALL MAJOR BRANDS: ZARA, GAP, ALDO, GUESS, CHARLES & KEITH, ETC6. EAST DELHI: MALLS | CROSS RIVER MALL, V3S EAST CENTRE | MAJOR BRANDS: PANTALOONS, HALDIRAM, FUN CINEMAS, ETC

NORTHEAST DELHI

EASTDELHI

CENTRALDELHI

SOUTH DELHI

SOUTH WEST DELHI

NORTH WESTDELHI

NORTHDELHI

12

3

4

5 67

89

NH1

NH10

NH8

NH2

NH24

1

2

3

4

5

6

Delhi Retail Spread (Organized Retail & High Streets)


(Figure 18)


What’s Cooking in Delhi’s Shopping Cauldron?

TheFoodandBeverage(F&B)sceneintheCapitalhasalwaysbeenvivacious,howeverthepastfivetosixyearshaveseenasignificantchangeinthewayDelhi’srestaurantslookandserve.Earlier,themarketusedtobeclearlydemarcatedbetweenfinediningrestaurantsandvalue-for-moneyfamilyeateries.FastfoodjointssuchasNirulasandWimpy’swereextremelysuccessful,butthemarketlackedrestaurantsthatofferedglobalcuisineswiththerightambience.MalchaMargwasoneofthefewmarketsthathadanF&B“cluster”ofsorts,andalsohousedrestaurantsthatinawayexperimentedwiththeircuisinetocatertothenearbyexpatriatepopulation.Today,thelinesareblurringfastwithanewerbreedofrestaurantsfillinginthegap.Ambiencehasbecomeagamechangerascustomersarenolongeronlyinterestedinthequalityoffood,butplacesignificantemphasisontheoverallambienceandqualityofserviceaswell.Delhi’sstandalonerestaurantshavecomealongwayfromservingpredominantly‘NorthIndianFood’toofferingworldcuisinessuchasJapanese,Chinese,Italian,Mexican,French,andMediterranean,amongothers.Finedining,internationalconfectionaryandbars,whichusedtoberestrictedtofivestarhotelsalone,hastodayspilledoutintoourstreetsandshoppingcenters,whicharelinedwithstandalonecasualdinerestaurants,pubs,sportbars,lounges,nichebakeries,cafes,etc.AkeyretailhubthatdeservesmentionisDLFCyberhubinGurgaon(inclosevicinitytoDelhi).ItisacontiguousF&Bdestinationspreadacross200,000sq.ft.inDLFCybercity.Theretailpodium,currentlyoneofakindinthecountry,boastsofhousingnearly50operatorsacrossmultipleformatsandcuisines,redefiningtheculinarylandscapeacrossNCR.

AslucrativeastheDelhiF&Bmarketis,ithowevercomeswithitsshareofcomplexitiesandchallenges.Operatorsareposedwithquestionssuchashowmanyoutletstolaunch,whichmicro-markettooperatein,whichexpansionstrategytoadopt,whethertobelocatedonahighstreetorinamall,amongothers.Thissectiondiscussesthisandmoreindetail.

HowManyOutlets?

Thenumberofoutletswithinacityhasadirectcorrelationwithconsumerproximityandticketsize.Mostmassmarketrestaurantshavechosentoexpandwithnumerousoutletswithinthecity,withahealthymixofstoresinmallsaswellasacrosshighstreets.Incomparison,casualdiners/clubsgenerallytendtolimittheirpresencetoprimelocationsofeitherhighstreetsorshoppingcenters.Forinstance,Starbucks,aleadingcoffeechain,openedatleast12outletsinitsfirstyearofoperationsacrossleadingmallsandhighstreetsintheNationalCapital,ascomparedtotheAmericanburgerchain,JohnnyRockets,whichchosetoopenoutletsinthreeprimeshoppingmallsintheCapital.QuickServiceRestaurant(QSR)brandsareabletofollowacarpetbombingapproach,ensuringagreaterfootprint.Thisislargelypossibleasthespaceuptakebysuchbrandsislowerthanthatneededbyalounge/casualdiningoutlet.FoodcourtsalsoprovidegoodexpansionopportunitiesforQSRsthatarenotavailabletoacasualdiningrestaurantoralounge.

WhichMicro-Market?

Owingtoitsvastgeographicalspreadandalargenumberoftraditionalhigh-streetsandotherretailzones,DelhioffersF&Bretailersnumerouslocationopportunities.Restaurantsarewidelyscatteredacrossthecityinestablishedhigh-streets,shoppingmalls(mostlydevelopedwithindistrictcenters),andotherpopularretailing/transportation/commercialhubs.SouthDelhiisonemicro-marketthataccountsfornumerousnotableF&BclustersincludingHauzKhasVillage,GreaterKailash,SafdarjungDevelopmentArea,DefenceColony,GreenParkMarketaswellastheonlyfoodmallinthecity-Epicuria.HauzKhasVillageandEpicuriahaveemergedasexclusivehubsforclubs/pubsandcasualdiningrestaurants,withnumerousoptionsavailableinclose


proximity.Elsewhere,theCentralBusinessDistrict(CBD)ofConnaughtPlacehasalsobeengainingpopularityasaprominentF&Bdestination;largelyowingtoitscentrallocation,proximitytocommercialestablishments,availabilityofadequatefloorplates,aswellasextensivemetroconnectivity.

ProminentglobaloperatorsthatopenedoutletsinSouthandCentralDelhiincludeStarbucks—openingitsfirstoutletinConnaughtPlace;andNandoswhichopeneditsfirstoutletinSouthDelhi,followingupwithastoreinConnaughtPlace.OtherlessprominentyetestablishedretailclusterswhichaccountforasignificantshareoftheF&BpieinthecityincludeWestDelhi(RajouriGarden,BKDuttMarket,ClubRoad(PunjabiBagh))andNorth,North-WestDelhi(NetajiSubhashPlace).However,mostoftheseclustersaredominatedbygoodqualityalbeitdomesticchainswithlimitedpresenceofglobalplayers.

HighStreetorShoppingCenter?

ThedecisionofanyF&Boperatortolocateonahighstreetorashoppingcenterhasgenerallybeendependentonthetargetcatchmentandtheassociatedrealestateandmaintenancecosts.Forinstance,mostmassmarketrestaurants(mainlycoffeechainsandfastfoodoperators),typicallyprefertolocateacrossaplethoraofhighstreetsaswellasshoppingcentersacrossvariouspartsofthecity.Thisisincontrasttocasualdinersorclubs(cateringtoanicheclientele),whichpreferpremiumshoppingcentersorleadinghighstreets.Anotherkeyfactoristhestoresizeandalterationsallowed.Whilealterationsareincorporatedacrossbothformats,it’stypicallyeasiertomodifystoresizesinashoppingcentervis-à-visahighstreet.MalldevelopersalsoconsiderF&Basanimportantpartoftheiroveralldevelopmentandzoningstrategyfortheirproperties,graduallyallocatingalargersharetoF&Boperatorsoverthepastfewyears—typicallyallowingforbetterpositioningforF&Bretailerswhileresultinginmorefootfallsforthemall.

ExpansionDecision–Intra-CityorInter-City?

Thedecisionofexpandingwithinanycityvis-à-visexpandingtoothercitieshasbeentypicallydependentonoperatorsalreadyhavingacentralkitchenoranestablishedback-endchain,resultingineaseofopeningmultipleoutletsinquicksuccession.Americanburgerchain,DunkinDonuts,expandedwithinNewDelhi,andopenedatleastfiveoutletsbeforemovingtoMumbaiduetohighinvestmentsmadeforsettingupoperationsinthecapital.Operatorsgenerallylookatleveragingexistingcapacitybeforemovingovertoanothercity.However,theimpactofopeningoutletsacrosscitiesleadstoanationalbrandpresence.GlobaloperatorssuchasStarbucks,BurgerKing,andPizzaExpresschosetoopenoutletsacrosskeycitiessuchasNewDelhiandMumbaiwithinaspanofafewmonths.WhenBurgerKingbeganoperationsfromDelhilatelastyear,itannounceditsintentiontoopen12outletsinthreemonths—largelyinDelhiandMumbai.Certainglobalplayers,however,lookataregionalfocus—Wendy’s,forinstance,hasstatedthatthebrandwillfirstlookatNorthIndiabeforeexpandingtootherpartsofthecountry.

Delhi – The F&B Capital of the CountryWheneverthereistalkofsettingupF&Boperations–generallyDelhiandMumbaiemergeasthefirsttwonamesthatanyleadingoperatorthinksof.InordertounderstandtheF&Bdynamicsacrossthesetwoleadinghubs,CBREconductedadetailedanalysisofpremiumhighstreets/shoppingcentersinthetwocities,tooutlinethefootprintofqualityF&Boperators.WhiletheactualF&Bfootprintinthecitiesismuchhigher,howevercertainfilterssuchaslocation,averagecostofameal,storesizeandrestaurantpositioninghavebeenappliedtoarriveattheanalysis.6Morethan800restaurants/pubs/cafes/QSR’swereconsideredacrossprominenthighstreets/mallsforarrivingatthefollowinginferences.Globalaswellasleadingdomesticoperatorswereapartofthisanalysis.

6. Filters such as store size, average cost per customer, restaurant positioning have been put to arrive at the number of restaurants for the analysis. Barbeques and small take away joints have been excluded. Restaurants in five star hotels have been excluded. Please refer to footnotes for further details.


High Street Shopping Centre

Number of F&B operators in Delhi and Mumbai


(Figure 19)

No. of Outlets

0

100

200

300

400

500

600

Delhi Mumbai


Casual Dine Restaurants (CDR) Cafés Fine Dine Restaurants (FDR)

Quick Service Restaurants (QSR)Pubs and Lounges

41% 41%

22% 24%

4% 6%

13% 10%

20% 19%

Category wise Split of Restaurants in Delhi

(Figure 20)

Category wise Split of Restaurants in Mumbai

(Figure 21)

F&BFootprint–DelhiandMumbai

WhilebothDelhiandMumbaihaveathrivingF&Bsector,thesector’sgrowthcurvehasbeendifferentinbothcitiesduetotheirinherentlydiversecharacteristics.GovernmentauctionoflandparcelsandrelativelyhigheravailabilityoflandparcelsinDelhiresultedin‘clustergrowth’ofshoppingcentersandhighstreetsacrossdifferentzonesinthecity.Ontheotherhand,paucityoflandparcelshaveledtoafarmoresporadicdevelopmentoftheretailsectorinMumbai,resultinginshoppingcentersbeingpepperedacrossthecity.

Asperouranalysis,Delhihousesmorethan5007restaurantsacrossleadinghighstreets/mallsascomparedtoabout300restaurantsinMumbai.DelhihasnumerousF&Bclusters,howeverthemostdominantandpopularjointsareinSouthDelhi—marketssuchasHauzKhas,GreenParkandSafdarjungDevelopmentAreaareinverycloseproximityandhousemorethan80suchrestaurants.Ontheotherhand,prominenthighstreetsinMumbaisuchasColabaCausewayandLinkingRoadhouseasignificantnumberofdomesticandlocalF&Boutlets,buttheseoptionsarewidelyscatteredandalargemajorityofthem(whilebeingpopularlocally)cannotbeclassifiedasaproperrestaurant/casualdining.AlargeproportionofeateriesinColabaforinstancewouldbelocal-bredtakeaways,barbequesandquickbiteformats.

7. Please refer to end notes for a list of the markets and methodology used to arrive at the number of restaurants


Category wise split of Restaurants across High Streets and Malls

% Share % Share

0%10%20%30%40%50%60%70%80%90%

100%

Delhi Mumbai

High Streets

0%10%20%30%40%50%60%70%80%90%

100%

Delhi Mumbai

Shopping Centers

(Figure 22)




Intermsofcategories,casualdiningrestaurantsleadinDelhiwithmorethan40%ofoutletsbelongingtothiscategory,followedbycafes(24%).ThetrendsarealmostsimilarinMumbai,withbothcitieshavinganalmostidenticalsplitofrestaurantcategories.Delhiisalwaysreadytotrynew-fangledanddifferentconcepts;asaresulttherehasbeenadilutioninthedifferencesacrossformatsinrecenttimes.Innovationandreinventionincuisine/ambiencehavebeenthebasicthemesfordomesticchains,leadingtoseveralsuccessfulgastronomicexperimentsoriginatinginthecity,includingIndianAccent,FarziCaféandSodaBottleOpenerwala,amongstothers.ThesechainshavesuccessfullyincorporatedIndian-fusionintheirofferings,therebyencouragingtransformationinthetraditionalIndianpalate.

CasualDineRestaurantsProminentinHighStreets,CafesdominateShoppingCenters

WhileDelhihighstreetsdohaveanalmost75%higherfootprintofF&BbrandsthanMumbai,however,oncomparingkeyhighstreetsacrossDelhiandMumbai,asimilarsplitofF&Boperatorsemerged.ThepresenceofCDR’sdominatesthesedestinations—Delhi(51%)andMumbai(50%)—followedbycafé’s—Delhi(17%)andMumbai(15%)—.FDR’swhilepreferringhighstreetsovershoppingcenters,asexpectedconstitutedtheleastsharesinbothcities,—Delhi(5%)andMumbai(9%)—largelybecauseofthefactthatmostfinediningrestaurantsinthesecitiesarestilllocatedinfivestarhotels.

Intermsofmallsalso,theanalysisrevealsthatDelhihasanedgeofmorethan75%overMumbaiintermsofF&Bfootprint.However,mallshaveaslightlydivergenttrendascafé’semergeddominantinshoppingcentersinbothcities;withcafesforming37%oftherestaurantsinMumbaishoppingcentersascomparedto30%inDelhi.QSRsweretheotherdominantcategory,withDelhileadingslightly.Closeto32%oftherestaurantsinmallsbelongtotheQSRcategory,withMumbaistandsat28%forthesamecategory.

GlobalF&BOperators–DelhiandMumbai

TheemergenceofDelhiasanattractivedestination,particularlyforglobaloperatorscanbewitnessedwiththeincreasingnumberofinternationalchainsmakingtheirforayand/orexpandingwithinthecity.Asshowcasedonthetimeline,19operatorsopenedtheirfirststoreintheCapitaloverthepastthreeyears,transformingformats,qualityandchoicesofferedacrossvariouspricepoints.


TheprominenceofDelhiasanF&BdestinationcanbegaugedfromthefactthatDelhihousesabout100globaloutletsascomparedtomorethan60inMumbaiacrossleadingshoppingcentersandhighstreets.MostglobalF&BoperatorswerelocatedinshoppingcentersinbothcitiesofDelhi(73%)andMumbai(80%),revealingthecomfortofsuchretailerstooperateoutofshoppingcentersoverhighstreets.

F&B Timeline of Delhi

(Figure 23)


2012 2013 2014 2015 YTD

American Fast Food Chain Dunkin Donuts entered into the country and opened 4 outlets by the end of the year.

European operators continue to make their foray into the country with French restaurant B Bar and luxury operator Roberto Cavalli Café.

American burger chains Burger King and Johnny Rockets enter into the country, and open 2 outlets each by the end of the year.

Restaurant chain Barceló's entered into India by opening an outlet in Delhi.

American casual diner Chili's opened their first outlet in the city.

American coffee chain Starbucks opened its first outlet in the city and opened 3 outlets by the end of the year.

Global F&B Chains including Yauat-cha, La Tagliatella, Harry's and Krispy Kreme their first outlet in the capital city.

Pizza Express , Movenpick, Royce Chocolates and Nandos open their first outlet in Delhi.

Taco Bell and Sbarro open their first outlet in Delhi.

Pita Pit opened its first two outlets in Delhi.

Fast Food Chain Dunkin Donut expanded their footprint by opening 5 more outlets.

Coffee Bean, Tea and Leaf expanded within the city and opened another outlet.

Restaurant chains such as Harry's, Krispy Kreme and Chillis continued to expand within the city.

Fast Food Chain Dunkin Donut expanded their footprint by opening 5 more outlets.

ENTR

Y IN

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ENTR

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Thetrendacrossmallshoweverwasmoreuniform,withglobalF&Boperatorsdisplayingasimilarmixacrosscategories.Whilecasualdiningstilldominatesmallsacrossbothcities,butthepresenceofglobalpubs/loungesislimitedascurrentlythissegmenthasalargerpresenceofdomesticoperators.

F&BPlayersFaceNumerousChallenges

ThecityallowsF&Boperatorswithtremendousgrowthopportunities,butlikeanyotherbusinessitalsohaschallengesthatplayersneedtotackle.Apartfromtheusualfeasibilityconcernsregardinglocation,size,set-upoperations,relevantconsumerbaseandcosts,F&Boperatorsfacetheirownsetofchallengeswhilechoosingalocationforanewoutlet.

LackofInvestmentGradeSpace:Theavailabilityofinvestmentgradespacehasbecomeacrucialfactorindeterminingthelocationofanoperatorinrecenttimes.Withonlyathirdofmallsinthenationalcapitalconstitutingprimeinvestmentgradespace,negligiblevacancylevelsinthesedevelopmentshaveledtooperators(particularlydomestic)choosinghighstreetdestinationsforoperatingwithinthecity.

FindingF&BCompatibleSpace:Settingupoperationsacrossanyformatrequirestheformattobe‘F&Bcompatible’intermsofanadequateback-endchain,productsupply,logistics,availabilityofingredients,storagefacilities,machineryandsupportservicessuchasgassupply,drainageandexhaustsystems.However,primeshoppingcentresofteneaseupthesettingupoperationsforF&Bchains,withmostdeveloperswillingtotakeup~70%ofthecostsinvolvedinordertomakeastore‘F&Bcompliant’.

DesirableFloorPlates:F&Bplayers,especiallyonesinthecasualdining,pubsandfinedinecategoryrequireaminimumfloorsizetoprovidethedesiredexperience.Barsneedtoseparatethedrinkingareafromthediningwhileclubswithliveperformancesneedtohaveseparatepodiums/performanceareas.MosthighstreetsinDelhidonothaveadequatefloorplatestoaccommodatesuchplayers.Anotherproblemwithhighstreetsremainsthelackofdesiredceilingheights.Mostmallsprovide4.5metresofceilingheight,whereashighstreetsareusuallyrestrictedto3.5metres,whichdoesnotgivethedesiredambianceforanF&Boutlet.Asaresulteithertheplayerendupcompromisingonthedesiredlayoutortakesuptwofloorsinthesamebuilding.

TailoringMenusasperIndianPalates:Whilethelaunchofglobalbrandsinanewcountryrequiresanunderstandingofindigenousconsumertaste,F&BoperatorsenteringinIndiahavebeenknowntosignificantlycustomizetheirmenus.Severalrestaurantshavehadtointroduceexclusivevegetarianmealsinordertobeeasily

Category wise split of Global Operators on High Streets and Malls

% Share % Share

0%

20%

40%

60%

80%

100%

Delhi Mumbai0%

20%

40%

60%

80%

100%

Delhi Mumbai

(Figure 24)


High Streets Shopping Centers



AninsightintoglobalF&Boperatorfootprintsacrosshighstreetsinbothcitiesrevealedthecapital’shighstreetclustergrowthattractingglobaloperatorsacrossdifferentcategories,ascomparedtohighstreetsinMumbaiwhichcurrentlyhousespredominantlyglobalCDRsandQSR’s.


acceptedbyIndianconsumers.McDonalds,DunkinDonuts,Chili’sandJohnnyRocketsamongstotheroperatorsareexamplesofrestaurantssuccessfullyadaptingtheirmenustosuittheIndianconsumerpalate.

SourcingofRawMaterials:AvailabilityofrawmaterialsfortheseglobalcuisinerestaurantscontinuestoremainakeychallengefacedbyF&Boperators.Forinstance,availabilityofmeatandotheringredientsforcuisinessuchasFrench,Italian,Portuguese,andJapanesecanprovetobeabarrierinlocatingacrossformats.Butoperatorshavefoundawayaround–themenushavebecomeseasonalandhavebeeninfusedwithlocalingredients;whereverpossible.

HighTaxes:FoodtaxesinDelhiareamongthehighestascustomersendupshellingupmorethan30%effectivetaxwhichincludesservicecharge(acommonpracticenow),servicetaxandvalueaddedtax.Therecentrevisionintheservicetaxfrom12.36%to14%isgoingtoleadtoafurtherincreaseineffectivetax.ThisissharpincomparisontoothercitiessuchasHyderabad,PuneorBangalore(whereVATchargesonbeveragesandalcoholaremuchlower).TheprohibitiverentalsinDelhialsoaddfurtherpressureonoperatorsforarrivingattherightpricepoints.

However,OpportunitiesLoomLarge

BeverageBoom:Beveragesarenolongerasideshow.Restaurantsareintertwiningbeveragesasanintegralpartoftheirmenuandnotjustsomethingtobehadalongsidefood.Restaurantsaremakinginnovationsinbothalcoholicandnon-alcoholicbeveragestoensurethattheseremainakeydraw.Sincealcoholicbeveragesisahighmarginbusiness,whichinturndrivesupfoodsalesaswell(withconsumersspendingmoretimeatthetable),itisbeingleveragedbyrestaurantstodriveupsales.

ChangingTastePallets/AcceptanceofGlobalCuisines:TheDelhiconsumerhasbeenevolvingfastandisincreasinglywillingtotryandadapttoglobalcuisines.Inthepast,nichesegmentssuchasJapanesecuisine,Italiancuisine,coastalcuisine,usedtoberestrictedtofive-starrestaurants,however,suchrestaurantshavenowbecomecommonplace.Confectionarywasalsotheforteoffivestarhotelbakeries,however,thecityisnowflakedbynicheconfectionaries(Elma’s,L’Opera,BigChillCakery,etc.).Ashealthconsciousnessisincreasinglykickingin,healthyeatingrestaurants(LeanChef,YogaCafé)havesprungupinthepasttwoyears,cateringtotheincreasinglycosmopolitancustomerintheCapital.

FormatInnovation/Flexibility:Justhavingmulti-cuisinerestaurantshasnowbecomepassé,'concept'restaurantsareinnovatingnewerformatssuchas‘café+bar’ora‘bar+lounge’,amongothers.Severalclubs/pubsallowstand-upcomediansalong-slidemusiciansandotherartists,whilebookcaféssuchasChaBarandCaféTurtleinCentralDelhiensurelongervisits,resultinginahigherspendpercustomer.Social,apubinHauzKhasVillageisanotherinstanceofprovidingvalueaddedservices,whichisamongstthefirsttoofferqualityworkspaceoptionsalongwiththediningexperience.Therecentallowancebythegovernmenttoallowformicro-breweriestosetupinDelhiwillallowformoreinnovationtothecapital’sfoodscene.

NewModesofCustomerEngagementAvailable:Socialmediaisbecomingakeymediumofinteractingwithclientsandcreatebrandawareness,therebyallowingforagreaterbuzzaboutthebrand.Itnolongertakesagesforreputationstoformassocialmedia(Facebook,Twitter,Zomato,Burrp)allowsforwordtotravelfastonagoodrestaurant.Asphotosaresharedandpublishedin‘realtime”alongwithnumerouswebsitesthathaverestaurantreviewsandmenus,acustomerisabletogetanalmostvirtualvisit,evenbeforesteppingintotherestaurant.Thesemediumsareleveragedeffectivelyallowingbrandstoinformconsumersaboutexistingandnewproducts,storeopenings,mediacoverage,promotionsandoffers.

TappingTransitSystems:Delhihaswitnessedarapidtransformationinitsnetworksystemswithdevelopmentofthemetroaswellastheredevelopmentoftheairport.ThemetronetworkofDelhiiswidespreadandisunderfurtherexpansion.Notonlydoesitallowforgreateraccesstoexistinghighstreetsandmalls,butalsoprovidesscopefordevelopmentofF&Binandaroundthemetrostations.TheT3ontheotherhand,hasmorethan150retailoutletsshowcasingcloseto500brands.ItprovidestremendousscopeforF&Binparticular,whichhasahigherchanceof“impulsepurchase”thanmostothercategories.Also,thecommencementofoperationsbyWorldmark,amixedusedevelopmentatAerocitywillprovidefurtherimpetustoF&Baroundtheairport.


Empowering Brands and Shoppers Through Technology

Theimpactoftechnologyinsimplifyingconsumerlivescanbewitnessedbytheincreasinguseoflaptops,tablets,smartphonesanddesktops.From200millioninternetusersin2013toover500millioninternetusersby2017—including314millionmobileinternetusers—thegrowthstoryofinternetusageinIndiaisontheupsurge8.Asaresult,e-retailhasgainedmomentumwiththewidespreaduseoftechnologyacrossageandincomegroups,impactingconsumer–retailerdynamics.

Onlineretailhasbecomeoneofthemostvibrantsegmentsoftheretailsector,withtechnologyallowingthesegmenttomagnifyitscustomeroutreachmanifold.Apartfromtheconvenienceofpurchasingalmostanythingatanytime,onlineshoppingportalsallowtheconsumerawidervarietyofchoiceatdifferentpricepoints.CBREconductedaconsumersurvey,‘How We Like to Shop – 2015’9,tounderstandshoppingpatternsofconsumersinIndia.Thesurveythrowsupsomeinterestingfindingsontheonlinesegmentaswellanditsrisingprominence,with78%oftherespondentsshoppingonlineatleastonceamonth.Respondentswerealsoquizzedonwhattheyexpectedtodomoreofteninthecomingtwoyears.Almost67%respondedthattheywerelikelytoshopfromadesktop/laptopmoreoften;whilearound59%expectedtousetablets/smartphonesmoreoftentoshoponline.Withalargemajorityoftherespondentspreferringtouseonlineplatformsmoreofteninthecomingyears,ithasbecomeclearthattechnologyispoisedtoplayalargerroleinshapingretaildynamicsinIndia.

Activity frequency of consumers

(Figure 25)

42%

39%

37%

31%

29%

26%

25%

35%

37%

48%

32%

49%

44%

37%

8%

8%

9%

9%

14%

11%

12%

0 20 40 60 80 100

Search a social networking site/access blogsfor feedback and comments on products

Compare prices on a mobile phone when in or around a store

Go into shops

Use a shopping centre app

Order online

Purchase other items when picking up online order from store

Order from retailer’s website and pick from store

Source: CBRE Asia Pacific Consumer Survey, 2014.

Atleast once a week Atleast once a month Every 2-3 months

8. Internet and Mobile Association of India (IAMAI)9. A retail consumer survey was conducted by CBRE in August 2014 to identify current and future shopping trends across the Asia Pacific (APAC) region. India was a part of this exercise, with a total of 1,000 respondents from the Delhi National Capital Region (NCR).


What will you do more often?

(Figure 26)


Do more often No change Do less often

39%

31%

30%59%

27%

14%

36%38%

26%

Visit a Physical Store

Use Smartphone / Tablet Use Catalogue/Mail Order

67%

24%

9%

Use Desktop / Laptop


SocialMedia–Consumers‘Like’

Theuseofvariedonlinechannelshasresultedinconsumersaswellasretailershavingvariousoptionsofinteractionavailabletothem.LeadingdevelopmentsinDelhisuchasSelectCitywalkandDLFPromenadeengagecustomersthroughtheirsocialmediapages,regularmailersonmalleventsaswellaswellupdatedwebsites.Consumersalsoplacesignificantemphasisonsocialmediaasalmost76%oftheconsumersinoursurveyadmittedtousingsocialmediatoupdatethemselvesonschemesatshoppingcenters.Thisillustratesthatconsumersareincreasinglyrelyingonsocialmediatomakeinformedchoicesontheirpurchases,perhapsinfluencedbysocialmediasitesthatincludeadvertisements,productreviews,newproductlaunchannouncements,etc.


Do you use social media to remain up to date with latest schemes, events and new stores atshopping centres?

(Figure 28)

9%disagree

15%neutral/don’t Know 76%

agree

MobilesDriveOnlineBoom

IndiahasthethirdlargestInternetuserbaseintheworld,outofwhichmorethan50%aremobile-onlyinternetusers10.Toleveragethis,leadingIndianonlineretailerssuchasFlipkart,JabongandMyntra,areinvestingheavilyindevelopingapplicationsfortheirwebsitesinexpectationofgeneratingmostoftheirsalesthroughmobileplatforms.Myntrahasfurtheruppedtheantebymovingtothe‘apponly’model,withallmajorplayersofferingspecial‘apponly’discountstodrivetraffictowardsmobilesales.Inoursurvey,weaskedconsumersiftheyshoppedovermobiles/mobileapplications,31%confirmedthattheyshoponanappatleastonceaweek,whileanother32%saidthattheymadeapurchaseatleastonceamonth.Onbeingaskedwhethercomparisonsweremadebyconsumerswhilemakingin-storepurchases,almost39%ofoursurveyedconsumerssharedthattheycomparepricesonamobilephoneinandaroundastoreatleastonceaweek.

Apps catching up fast…

(Figure 27)


32%

31%

Once a month

Once a week

14%

12%

9%

Never

Less Often

Every 2 or 3 months 2%Don’t Know

10. Internet and Mobile Association of India(IAMAI)


RisingOnlineSpends

Consumersarereadytospendmoreonlinewiththeinitialdiscomfortofonlineretailercredibilityanduncertaintyaroundonlinepaymentsecuritybeingdoneawaywith,asnumerousdomesticplayershaveestablishedtheircredibilityintheonlineretailmarket.TheentryofglobalplayerssuchasAmazonandEbayhasfurtherre-affirmedthebeliefinthefutureoftheIndianonlineretailindustry.Ticketsizesarerisingandpeoplearemovingonlinefrommakingapparelpurchasestohighticketpurchasessuchasfurniture,consumerelectronicsandmobilephones.Asperoursurvey,almost78%feltthattheywerelikelytospendmoreviaonlineshopping,comparedtojustabout40%respondingpositivelytospendingmoreatphysicalstores.Ofthosewhoanticipatespendingmoreinthenexttwoyearsregardlessoftheretailplatform,mostoftheirpurchasesareexpectedtobeonline.Theperceptionofe-retailasjustacosteffectivemediumofpurchasehaslongbeenchanged,withthehigh-endretailmarketcreatingwavesviatheonlineforum.Anotherinterestingtrendisthattherisingquantumofonlinesalesgoingforwardisaccentuatedacrossconsumersfromhigher-incomehouseholds.

How much will you spend?

(Figure 29)


More No change Less

Go into Shops Order Online

40%

39%

21%

78%

18%

4%

UseofTechnologybyBrickandMortarStores

MovingOnlineInabidtoensuregreaterpenetrationintotheIndianmarket,particularlysmallercities,prominentglobalbrandsthatwerealreadypresentviathebrick-and-mortarformatshavestartedtoestablishtheironlinepresence.Theyear2014alonesawatleast18suchglobalbrandsmovingonline,includingbrandssuchasMango,Aldo,Superdry,Nautica,TommyHilfiger,NineWestandSteveMadden.Playersarealsoadoptingthe‘Omni-channel’withservicessuchasbuyonlineandcollectin-store,acceptcustomerreturnsandrefundsforproductsboughtonline,storekioskforbrowsingandpaymentforproducts.

KEY BRICK & MORTAR FASHION STORES SETTING UP ONLINE OPERATIONS^

MODE OF SETTING UP OPERATIONS (DEDICATED WEBSITE, PARTNERING WITH AN ONLINE PLAYER)

Shoppers Stop, Bata, Mango, Forever 21, Biba, Trendin (AllenSolly, Van Heusen, Per England), Major Brands (DKNY, Nine West, Charles & Keith, Aldo, Bebe etc)

Dedicated Websites

Steve Madden, Mango, Aldo, Dune London, Superdry, Puma,Vero Moda, Tommy Hilfiger, Benetton, Adidas, Nike, French Connection

Tie up with leading online players such as Flipkart, Jabong, Myntra

Source: Source: CBRE Research, Q2 2015. ^ Indicative only


UsingTechnologytoMake‘in-storeexperiences’BetterTheIndianshopperhasevolvedandshoppingdoesnottranslateintostandinginqueueswaitingforthebilling.Shoppinghasevolvedfromjustbeingaboutproductstocustomerslookingforaseamlessexperience.WhileIndianplayersmightnotbeatparwithierglobalcounterparts,howevertechnologiessuchasquickresponsecodes(QR)codes,self-servicekiosks,mobilewalletshavehelpedinprovidingsuchanexperience.

Retailerstodayhaveunderstoodthattechnologyisakeycomponentoftheshoppingexperiencetoday.Mostleadingbrandsacrosssegmentshavelongbeenusingbarcodesforbilling(toavoidlongqueues)aswellaskeepingatrackonthestock.Technologyisalsobeingusedbyplayersforbetterintegrationbetweenstoresofabrand;therebyallowingcustomersawidervarietyofproducts.Forinstance,incaseofnon-availabilityofaparticularproductinthestore,apparelretailerMangoallowsforcheckingiftheproductisavailableinsomeotherstoreandgetsitdeliveredtothecustomer’saddress.MostleadingstoresalsosendoutpromotionalSMSsandemailstocustomersinformingthemonthelatestin-storeofferings.

Useofmobilewalletsisalsofastcatchingup;Noida-basedPaytm,isaleadingmobilewalletcompanywith20millionactiveusers.Thecompanyhasalmost40%ofitsusersfromtier-IIandtier-IIItowns;asmostofthemdon’thavecreditcardsorevenonlinebankingfacilities.Someindependentshop-keeperscreatemobilewalletsfortheunbankedpeopleusingtheirowncreditcards/onlinebankingfacilities,whilephysicallyacceptingcashfortheamounttheydepositinthemobilewallets.ThishasallowedforwideraccesstofundsaswellasretailproductstoconsumersintierIIandIIIcities.

ExperiencesfromAroundtheGlobeAsconsumerstodayarespoiltforchoiceanddemandnotonlytheirassortmentofproductsbutalsoapleasantshoppingexperience,theimpactoftechnologyonbetteringthe‘physicalstoreexperience’shouldnotbeundervalued.Severalbrandsacrosstheglobehaveeffectivelyincorporatedtheuseoftechnologyintheirstorestoensurecustomerneedsaremetandtimespentintheirstore/platformisconsideredastime“wellspent”.

‘Fashion Like’:FacebookisanintegralpartofmostlifestylestodayandaBrazilianfashionbrandhasusedittoitsadvantage.C&AFashioninBrazilhastakenaninitiativenamed‘FashionLike’,whichdisplaysFacebook‘likes’onsmallscreensembeddedinarticles’hangers.Theretailershowstheincreasingtallyof‘likes’receivedfromthewebacrossdifferentclothingitems.

Self-service Kiosks at Supermarkets: FoodstorechainssuchasSparhaveimplementedself-servicekiosksinvariouscountriesforallowingcustomerstodotheirownbilling.Thisallowscustomer’sgreaterflexibilityforchoosingproductsaswellasreducesthetimespentstandinginqueues.

“Qthru” App:Mostpeoplewouldliketoskipthelineatagrocerystore.ASeattlebasedstartupQthruhasdevelopedanappwhichallowsuserstodownloadtheappandinputtheircreditcarddetails.Postthis,wheninastore,shopperscanscanbarcodesoftheitemstheywantandcancheckoutbyenteringtheirpasscodeandscanningaQR-codeataQThrukiosk.

Customer Croudsourcing: Aslogisticscostsaregoingup,retailersarelookingtoencourageconsumerstobuylocalgoods.SuperBrugseninDenmarkusescustomercrowdsourcingtoensurethatthestoreonlystockslocalitemsthatwillsell.Ontheirwebsite,customerscansuggestparticularlocalitemstheywouldlikethestoretostock,afterwhichmanagerswilltesttheproductsfortasteandquality.

Enriching the ‘Product Trial’ experience:Asoneofthekeyreasonsforvisitinganapparelstoreistryingonaproduct,leadinginternationalbrandssuchasRebeccaMinkoffhavegonealongwayinimprovingtheuseoffittingrooms.Customerscanbrowseandselectproductsonaugmentedrealitytouchscreensembeddedin‘magicmirrors’intheirinteractivefittingrooms.Customersclickonthemirrortohaveitemssentdirectlytofittingroomsandpayforthembyusingtheirmobilephones.


Extensive Use of Data Analytics:Severalglobalbrandshavegoneastepaheadintryingtomeetindividualconsumerneeds,withdataonconsumerpurchasepatternsandpreferencesincorporatedinproductassortment.WarbyParker,anonlineeyeglassesretailerintheUShasbeenfocusedonusingdataanalyticstoprovideaseamlessshoppingexperience.Ithasacoreteamthatminesdataandusesalgorithmstocontinuallyinnovateandpersonalizeofferstoimprovecustomerexperiences.

Interactive shopping experience:Yihaodian,oneofChina’sleadingonlinegrocerychainhadopenednumerousvirtualstoresthatcanbeaccessedincertainpubliclocations.Whencustomerspointtheirsmartphoneintherightdirectionatinsuchlocations,avirtualstoreisdisplayedwhereitemssitonshelves.Consumerscanadditemstotheircartandgetitdeliveredtotheaddressoftheirchoice.

WayForward:SynergeticGrowthbetweenOnlineandBrick-and-MortarStores

OneuniversaltrendthatIndiansareembracingisonlineshopping,despiteconcernsregardinginternetpenetrationinthecountry.Consequently,retailersareadvisedtoadoptadual-platformbusinessmodel,enablingthemtoleverageonthemarketingvalueofphysicalstoreswhileextendingpromotionsandsalesacrossinternetportals.Meanwhile,retailersalsoneedtogrowandevolvetheirin-storeexperiences—perhapsconcentratingmoreonvisualmerchandizingand/orenhancingthesensualaspectofshopping—tocontinuetocompetewiththeconvenienceofonlineshopping.Ratherthanfocusingoncombatingtheboominonlineshopping,Indianretailersneedtoacceptthatonlineshoppingisheretostay;andthatitwillremainandgrowasadriverforretailsalesinthecountry.Brick-and-mortarretailersshould,therefore,focusondevisingwaystoridethee-commercewaveinstead.Thismeansthatbarriersbetweenonlineandofflineretailchannelsmustbebroken;andthatretailersmustseekopportunitiestomergethetwochannelstogetherforreapingthebenefitsofcreatingan‘Omnichannel’,wheretheofflinebecomestheonlineandtheonlinebecomestheoffline.Astrongfoundation(physicalstore)thatisalsoconnectedtoacustomer-friendly,easy-to-useonlineshoppingchannelcouldbethesecrettofuturesuccessintheIndianretailmarket.


Definitions/Notes:AdetailedF&BanalysiswasundertakenbyCBREacrosspremiumhighstreets/shoppingcentersinDelhiandMumbaiacrossaninitialsetofmorethan1,300restaurants/eateries,tooutlinethefootprintofF&Boperatorsinthesetwometropolitancities.Thefinalanalysisislimitedto843restaurantsacrossbothcitiesafterapplyingfilterssuchaslocation,averagecostpercustomer,sizeofthestore,restaurantpositioning.F&BoperatorswithanaveragecostofINR500perpersonhavebeenincluded,withexceptionsonlyinthecaseofprominentdomestic/internationaloperatorsgarneringastrongregional/nationalpresence.Local-bredtakeawayjoints/quickbiteshavebeenexcludedfromtheanalysis.Bakeries/confectionerieswithhighqualityofferingshavebeenincludedintheanalysis.Restaurantsincommercialdevelopmentshavenotbeencountedin;norhaverestaurantsinhotelsbeenincludedfortheanalysis.

ShoppingCenterscoveredasapartofthisanalysisinclude:Mumbai: HighStreetPhoenix(Palledium,GrandGalleria,Kyzone),InorbitMall,RcityMallandOberoiMallDelhi: AmbienceMall,DLFEmporio,DLFPlace,DLFPromenade,MGFMetropolitan,Epicuria,PacificMallandSelectCitywalk

Highstreetscoveredaspartofthisanalysisinclude:Mumbai:LinkingRoadandColabaCausewayDelhi: ConnaughtPlace,GreenParkMarket,HauzKhasVillage,SafdarjungDevelopmentArea,GreaterKailash-IIMainMarket,KhanMarketandDefenceColony

Operatorshavebeendividedintothefollowingcategoriesbasedonproductoffering,brandvalue,grade,ticketsizeandambience:

Quick Service Restaurants (QSRs):Operatorstypicallyofferingastandardizedmenu,withafastturn-arounddeliverytime.Ticketsizesaregenerallylowwiththesemass-market,self-service,fastfoodrestaurantscateringtothegeneralpublic.

Café’s:Operatorsgenerallyofferingcoffee/teaandrelatedbeverages,withsometypeofbakeryandsmallbites.TheseallowforalongerconsumerstayascomparedtoQSR’s,withalow-mediumticketsize.Thiscategorywouldincludeallmass-marketbakeries,confectionaries,coffeechainsalongwithtraditionalcafés.

Casual Dine Restaurants (CDRs): Operatorsofferingcomparativelygoodqualityproductsavailableatamedium-highticketsize.Whilethiscategoryincludestable-servicerestaurantsofferinganinformaldiningexperience,theyareconsiderablymoreformalascomparedtoCafésandQSR’s.

Pubs and Lounges:Mostestablishmentsinthiscategoryincluderestaurantsthatservealcoholicbeveragesalongwithanarrayoffoodoptions,withsignificantemphasisontheambience.Thiscategorytypicallyoperatesonamedium-highticketsizemodel.

Fine Dine Restaurants (FDRs):Thesearefullservicerestaurantswithseparatemealcoursesoperatingonhighqualitydécorandformallythemedambienceandspeciallytrainedstaff.Theseoperateonahighticketsizemodel.

ForundertakingananalysisofshoppingcentresinNewDelhi,developmentswereclassifiedunderthreecategoriesbasisquality,featuresandservicesofferedbydevelopments:

Prime Investment Grade Malls: Premiumdevelopmentsbuiltbyreputeddevelopers,offeringhighefficiencyandqualityservicefacilitiesincludingadequateceilingheight,24X7powerback-up,centralair-conditioning,spaciousandwelldecoratedlobbies,circulationareas,goodliftservices,sufficientparkingfacilitiesandshouldhavecentralizedbuildingmanagementandsecuritysystems.Further,thedevelopmentwouldhouseleadingglobal/domesticbrandsacrossluxury/bridgetoluxuryandhigh-endsegments.Thesedevelopmentsareexpectedtobelocatedinwell-connectedareasincloseproximitytothehighincomepopulationcatchmentofthecity.Thiscategorytypicallyconsistsofmedium-largesizeddevelopments,withmajorityofthembeinglargerthan400,000sq.ft.

Investment Grade Malls: Developmentsbuiltbyregionaldevelopers,offeringsatisfactoryefficiencyandservicefacilitiesincludingadequateceilingheight,24X7powerback-up,centralair-conditioning,spaciouslobbies,circulationareas,goodliftservices,parkingfacilitiesandshouldhavecentralizedbuildingmanagementandsecuritysystems.Further,thedevelopmentwouldhouseleadingmid-enddomesticbrandsandselectglobalretailers.Thesedevelopmentsaretypicallylocatedinsecondarymarketareas(orinemerginglocations)incloseproximitytothemidincomepopulationcatchmentinthecity.Thiscategorytypicallyconsistsofsmall-mediumsizeddevelopments,withmajorityofthembeinglowerthan400,000sq.ft.

Semi-Investment Grade Malls:Developmentsbuiltbyregionaldevelopers,offeringlowefficiencyandmaynotofferservicefacilitiesincludingadequateceilingheight,24X7powerback-up,centralair-conditioning,lobbies,circulationareas,goodliftservices,parkingfacilitiesandmaynothavecentralizedbuildingmanagementandsecuritysystems.Further,thedevelopmentwouldlargelyhouselocalbrands.Thesedevelopmentsaretypicallylocatedinsecondarymarketareas(orinemerginglocations)incloseproximitytothemid/lowincomepopulationcatchmentinthecity.Thiscategorytypicallyconsistsofsmallsizeddevelopments,withmajorityofthembeinglowerthan200,000sq.ft.


CBREGroup,Inc.

CBREGroup,Inc.(NYSE:CBG),aFortune500andS&P500companyheadquarteredinLosAngeles,istheworld’slargestcommercialrealestateservicesandinvestmentfirm(intermsof2014revenue).TheCompanyhasmorethan52,000employees(excludingaffiliates),andservesrealestateowners,investorsandoccupiersthroughmorethan370offices(excludingaffiliates)worldwide.CBREoffersstrategicadviceandexecutionforpropertysalesandleasing;corporateservices;property,facilitiesandprojectmanagement;mortgagebanking;appraisalandvaluation;developmentservices;investmentmanagement;andresearchandconsulting.Pleasevisitourwebsiteatwww.cbre.com

CBREwasthefirstInternationalRealEstateServicesfirmtosetupanofficeinIndiain1994.Sincethenouroperationshavegrowntoincludemorethan3,800professionalsacross9officeswithapresenceinover25citiesinIndia.Astheleadingrealestateservicesfirm,weprovideourclientswithawiderangeofrealestatesolutionsincludingStrategicConsulting,Valuations/Appraisals,CapitalMarkets,AgencyServices,AssetServicesandProjectManagement.OurguidingprincipleatCBREistoprovidetacticalandstrategicsolutionsthatmakerealestateholdingsmoreproductiveandeconomicallyefficient.Everyday,wepartnerwithourclientstoensurethattheirrealestatestrategyisalignedwiththeirbusinessstrategy.Ourprofessionalsarecommittedtoprovidingthehighestqualityofferingstodevelopers,investorsandoccupiers—throughoutIndiaandaroundtheworld.

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TheConfederationofIndianIndustry(CII)workstocreateandsustainanenvironmentconducivetothedevelopmentofIndia,partneringindustry,Government,andcivilsociety,throughadvisoryandconsultativeprocesses.

CIIisanon-government,not-for-profit,industry-ledandindustry-managedorganization,playingaproactiveroleinIndia'sdevelopmentprocess.Foundedin1895,India'spremierbusinessassociationhasover7600members,fromtheprivateaswellaspublicsectors,includingSMEsandMNCs,andanindirectmembershipofover100,000enterprisesfromaround250nationalandregionalsectoralindustrybodies.

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Extendingitsagendabeyondbusiness,CIIassistsindustrytoidentifyandexecutecorporatecitizenshipprogrammes.Partnershipswithcivilsocietyorganizationscarryforwardcorporateinitiativesforintegratedandinclusivedevelopmentacrossdiversedomainsincludingaffirmativeaction,healthcare,education,livelihood,diversitymanagement,skilldevelopment,empowermentofwomen,andwater,tonameafew.

Inits120thyearofservicetothenation,theCIIthemeof‘Build India – Invest in Development, A Shared Responsibility,’reiteratesIndustry’sroleasapartnerinnationaldevelopment.Thefocusisonfourkeyenablers:FacilitatingGrowth&Competitiveness,PromotingInfrastructureInvestments,DevelopingHumanCapital,andEncouragingSocialDevelopment.

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