24 November 2023, Mumbai

A new report by real estate consultant Cushman & Wakefield ranks Delhi’s Khan market as the 22nd most expensive retail high street location in the world with an annual rent Rs 18,000 per sq ft. The report ranks Khan Market, Connaught Place in Delhi, Linking Road in Mumbai, Galleria Market in Gurugram and Park Street in Kolkata as the top five most expensive high streets in India.

Real-estate landscape

India’s market is witnessing growing demand for quality-grade retail malls post-pandemic, says Saurabh Shatdal, Managing Director, Capital Markets, Cushman & Wakefield India. This will result in a lot of new developments in the coming months, he adds.

Titled, “Main Streets Across the World,’’ the report ranks New York’s Fifth Avenue as the world’s most expensive retail market, followed by Milan’s Via Montenapoleone and Hong Kong’s Tsim Sha Tsui. 

The fourth and fifth ranks in the report were grabbed by New Bond Street in London and the Avenues des Champs-Elysees in Paris. Due to inflation, the ranking of the Istiklal Street in Istanbul, rose from the 31st position last year to 20th position this year.

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25 November 2023, Mumbai

JLL India, a division of the globally recognized real estate services firm specializing in commercial property and investment management, recently released a comprehensive report on India’s retail landscape.

Observation

The report foresees a significant upswing in the availability of new retail space across the country. Between the latter half of 2023 and 2027, an estimated 38 million sq. ft. of retail space is expected to be on offer for rental and leasing in the top seven cities.
India has become a focal point for international brands spanning the high street, bridge, and luxury categories, seeking to establish their presence in the market.

Nuanced picture

This heightened demand is particularly noticeable in major cities like Mumbai, Delhi-NCR, and Bengaluru. The report pinpoints 24 international brands actively in pursuit of retail spaces in the Indian market.

Interesting facts

A noteworthy illustration of this growth is the inauguration of Reliance Industries' Jio Luxury Plaza on November 1, 2023, covering four levels and an expansive 7,50,000 sq. ft. The mall showcases an array of premium brands, including Valentino, Tory Burch, YSL, Versace, Tiffany, Laduree, Pottery Barn, Louis Vuitton, Gucci, and Cartier.
Another driving force behind the rapid expansion of retail space leasing is the increasing omni-channel strategy by brands. This approach not only enhances their visibility but also elevates the overall shopping experience for consumers.
Response to changing face of consumption
Presently, malls and shopping districts in cities are witnessing increased footfalls due to evolving shopping and socializing habits among consumers. This surge in physical store visits has compelled brands and retailers to expand their brick-and-mortar presence.

Consumers are seeking enjoyable, convenient, and immersive experiences, motivating them to prefer in-store purchases over online transactions. With the rise in footfalls, there has also been a corresponding increase in the average rental rates for prime locations.

Study
As per real estate consultants Cushman & Wakefield, high-street locations nationwide have seen rental surges of up to 50 per cent in 2022, while malls experienced an average yearly rent increase of 10 per cent. As Abhishekh Trehan, Executive Director of Trehan Iris, highlights Delhi-NCR is a flourishing market for the retail industry, with an anticipated 31 per cent of new supply expected to be in Delhi-NCR.

Emerging areas in the National Capital Region (NCR), such as New Gurugram and Greater Noida West, are identified as having significant potential to become preferred Grade A retail destinations.
As of the first half of 2023, there were 89 million sq. ft. operational retail space spread across the top seven cities – Delhi NCR, Mumbai, Pune, Bengaluru, Kolkata, Chennai, and Hyderabad.
Growth figures shows upward swing
The first half of 2023 shows major growth as compared to the same period in 2022, with a 24 per cent surge.

Multiple data-points

The January to June period saw additional lease of 2.87 million sq. ft. 65 per cent of this new leasing was in Delhi-NCR, Bangalore, and Ahmedabad. Total leasing for the quarter that ended on June 30 was 1.3 million sq. ft. and Bangalore and Delhi-NCR accounted for 59 per cent of retail space lease.

Delhi-NCR has a significant 24 per cent share of all leases during this time. Fashion & clothing drove leasing activity during the quarter, accounting for 38 per cent of total lease activity. Food and beverage sector held 18 per cent share, while luxury and home & department store sectors each had 11 per cent share.

Prognosis
With this remarkable growth, retail space in India has emerged as the world’s fifth-largest and is anticipated to reach an astounding value of $2 trillion by 2032, as per Boston Consulting Group analysis.

With these projections and ongoing growth, the future of Indian retail leasing surely looks promising.

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22 November 2023, Mumbai

French handbag brand, Hindbag, is set to open its new boutique in Paris.
The brand founded in 2017 by Pierre Monnier in collaboration with Swami Sivananda Memorial Institute (SSMI), a Delhi-based NGO that provides textile manufacturing jobs to unprivileged children and women.

Nuanced picture

The company generates 20 per cent of its revenue through B2B channels. The brand’s colorful GOTS-certified cotton bags make up 80 per cent of sales. Half of its revenues are generated through 600 retail stores while the remaining 50 per cent through online sales

The brand plans to launch its maiden collection of jackets and overshirts in April besides opening several new stores. It will primarily focus on the German market where it currently has 60 resellers of its 200 retail partners.

Hindbag also aims to expand its global online sales, as France currently represents 80 per cent of its online market.

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Walmart has adjusted its net sales guidance for FY24, forecasting a range of 5 to 5.5 per cent, with adjusted earnings per share expected to fall between $6.40 and $6.48 in the same period. The delayed launch of its Indian ecommerce arm, Flipkart’s ‘Big Billion Days’ festive season this year allowed the company to enhance its consolidated gross margin. The ecommerce company’s gross margin saw a 32 basis points increase. However, the shift of Flipkart’s Big Billion Days sales from Q3 last year to Q4 this year negatively impacted overall and ecommerce sales growth.

The company reported a 3 per cent increase in international ecommerce sales, while advertising sales grew 4 per cent. Flipkart had set expectations to achieve a gross merchandise value of around Rs 33,000-36,000 crore during the festive season sale, which commenced on October 8 and concluded in November. In 2023, Flipkart conducted over half of the total festive season sales through online platforms, contributing to consistent sales growth, especially in sectors such as electronics, food, and groceries, recording double-digit growth over the previous year.

Walmart's international net sales for the year grew 5.4 per cent year-on-year to reach $26.7 billion, with strong performances reported in Mexico and China. The global advertising business experienced 20 per cent growth, with advertising sales from Walmart Connect and Sam’s Club MAP increasing 26 and 27 per cent, respectively.

The American company also recorded a significant improvement in its consolidated net income, reporting $453 million for the third quarter, compared to a loss of $1.79 billion in the same period last year. Consolidated revenue for the third quarter grew 5.2 per cent year-on-year to $160.8 billion. Adjusted earnings per share for the three months ending on October 31 were reported at $1.53.

Santosh Kumar Sarangi, Director General of the Directorate General of Foreign Trade (DGFT), stated India's e-commerce exports could reach $200 billion in the next six to seven years, a significant increase from the current $1.2 billion. Speaking at the 'E-commerce Exports' conference organized by the Federation of Indian Chambers of Commerce and Industry (FICCI), Sarangi highlighted the need for changes in logistics handling, policy-making, and the approach of the Reserve Bank of India (RBI) to facilitate this growth in e-commerce exports.

He emphasized for India to achieve this ambitious target, there must be reforms in logistics and policy frameworks. He also expressed confidence that the e-commerce industry will play a pivotal role in helping India realize its broader goal of achieving $2 trillion in exports.

During the conference, Sarangi discussed the initiatives undertaken by the DGFT in collaboration with other regulatory agencies to streamline and facilitate e-commerce exports. He also underscored the importance of creating awareness among exporters to conduct e-commerce business in a fair and ethical manner.

24 November 2023, Mumbai

Commencing today at Uniqlo stores across India, the Arigato Festival invites customers to explore new products, enjoy exclusive discounts, and bask in a welcoming in-store ambiance. Inspired by the traditional Japanese concept of Kanshasai, or Thanksgiving, the festival serves as a sincere expression of gratitude from Tomohiko Sei, CEO of Uniqlo India, to the local patrons who have warmly embraced Uniqlo and integrated LifeWear products into their daily routines.

Nuanced picture

As part of the festivities, customers can take advantage of limited-time offers on Uniqlo's renowned 'Ultra Light Down,' 'HeatTech,' and 'Fleece' ranges until November 30. Shoppers spending over Rs 10,000 during the event will receive an exclusive stainless-steel tumbler and stand a chance to win exciting free gifts through a lucky draw.

Simultaneously, Uniqlo is unveiling its latest collaborative collection with designer Anya Hindmarch, available both in physical stores and on its e-commerce platform starting today. Crafted for the winter festive season, this collection seamlessly combines classic LifeWear styles with Hindmarch's contemporary designs, promising a perfect fusion of comfort and style for shoppers.

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21 November 2023, Mumbai

Purple Style Labs, the parent company of the luxury fashion omni-channel platform Pernia’s Pop-Up Shop, is set to expand its omnichannel presence. Presently, it owns 15 Pernia’s Studio experience centers worldwide, serving both men and women in Mumbai, Bengaluru, Hyderabad, Delhi, Kolkata, Ahmedabad, Surat, and Mayfair, London. The company is now eyeing expansion into New York, San Francisco, Los Angeles, Dubai, and Singapore, as well as cities in India such as Chennai, Chandigarh, Indore, Lucknow, and Jaipur.

With gross sales of $100 million, Purple Style Labs aims to double the figure within the next two-three years. Following this growth, the company plans to go public in FY26.

In a recent Series-D funding round, Purple Style Labs secured $8 million (approximately Rs 66.6 crore) in investments. The funding was led by Sanket Parekh of the Pidilite family office and saw participation from investors such as Signet, the family office of Harish Shah, Hira Group’s family office, Singularity Growth Opportunities Fund I, Neelesh Bhatnagar of NB Ventures, fashion designer Masaba Gupta, and former partners of Premji Invest, Rahul Garg, and Atul Gupta. The fundraising valued the company at $352 million.

Purple Style Labs is known for showcasing products from renowned labels like Tarun Tahiliani, Amit Aggarwal, Falguni Shane Peacock, Gaurav Gupta, Seema Gujral, Abhinav Mishra, and Shyamal and Bhumika. Having acquired Pernia’s Pop-Up Shop in 2018, the company has experienced over 100 per cent annual growth in the past two years, according to Abhishek Agarwal, the Founder.

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