India ranks 39th in global favourite places for retailers
The country has emerged as the 39th most preferred destination for retailers in the world, while China is the fifth in the list, which continues to be led by Britain.business Updated: May 24, 2010 18:37 IST
The country has emerged as the 39th most preferred destination for retailers in the world, while China is the fifth in the list, which continues to be led by Britain.
According to a survey by How Global is the Business of Retail? by realty consultant firm CB Richard Ellis (CBRE), India which was ranked 44th in 2008, has moved up to the 39th position with 22 per cent of retailers having presence in the country.
In the list, Britain stays as the No 1 retail destination, followed by the UAE, the US, France and China. The annual survey conducted by CBRE involves 294 of the world's top retailers across 69 countries, it said.
"Since the last survey done a year ago, India's retail market has grown significantly. However, because of the recent global economic crisis which led to the delay in completion of retail projects retail activity has slowed down," CBRE chairman and managing director Anshuman Magazine said.
The report said some of the factors which are impacting the domestic retail market are low purchasing power and FDI not being allowed in the sector, besides lack of availability of real estate, infrastructure and supply chain management.
"It (the 39th position) does not justify the size of our economy. This is due not only to the fact that FDI in retail is not allowed but also that our purchasing power continues to be relatively lower," he said.
On the other hand, China has become a favourable spot for international retailers, entering among the top five for the first time. The report said 47 per cent of top global retailers are now present in the country.
In Asia, Hong Kong is the leading retail market, followed by Beijing, Tokyo and Shanghai – all four of which feature in the global top 10 markets.
However, Europe continues to be most preferred among retailers, with all five of the largest European economies led by Britain featuring in the top 10 international retail destinations.
"Despite a bumpy year for retail markets across the world, Britain maintained the number one position in the top 20 most international retail markets ranking for the third year running," the survey said.
With 54 per cent of the retailers present in the survey, England is closely followed by the United Arab Emirates due to its ability to attract global retailers.
"Emerging markets also continue to play a critical role in the global expansion strategies of international retailers. Despite economic challenges in the Middle East, this region is fast becoming a prime spot on the global retail market," CBRE head of EMEA cross-border retail Peter Gold said.