Marketers adapt retail trends in changing times

ET: Monday
MUMBAI: Traditional shopping-streets, bazaars and markets, predecessors of India's organised retailing, have emerged as equal contributors to the country's retail eco-system and have become resilient.

India's leading high streets such as Connaught Place or Khan Market in Delhi, Mumbai's Linking Road, Colaba or Breach Candy, Brigade Road in Bangalore, T Nagar in Chennai, Kolkata's Park Street and Pune's F C Road have adapted themselves to cater to the changing aspirations of consumers as well as changing retail trends.

The appeal of the high street is expected to be enhanced in the future, a study conducted by international property consultants Jones Lange La Salle-Meghraj (JLLM) said.

"India's leading high streets have been at the forefront of India retail and consumer change and have demonstrated their resilient nature."

"The prime shopping street rentals across the board in these streets have almost witnessed an increase over the last few years ranging anywhere from 30% to up to 100%," said JLLM country head Anuj Puri in its study "Leading High Streets, Embracing Change."

In terms of rental benchmarkings, Delhi's prime shopping streets Khan market, Connaught Place and South Extension occupy the top three positions, followed closely by Linking Road, Colaba and Breach Candy of Mumbai.

Kolkata, Pune, Bengaluru, Hyderabad and Chennai also figure in the pecking order. More than 50% of the top 30 brands with high penetration are of international origin, while the rest are domestic brands.

High streets in particular enhance the retail appeal and attractiveness of a brand. Malls on the other hand, enhance the overall shopping experience for any brand.

But the ability and willingness of the buyers to spend and the catchment area are some of the key factors for growth of these high streets, Mr Puri said.

In terms of rental benchmarkings, Delhi's prime shopping streets Khan market, Connaught Place and South Extension occupy the top three positions, followed closely by Linking Road, Colaba and Breach Candy of Mumbai.

Malls in India are taking time to establish themselves as a one-stop destination. Also, the construction of a mall takes time. Moreover, usually high-end malls come up in some distant suburb or off-prime locations.

But high streets do not have that kind of customised environments. Pantaloons CEO Rakesh Biyani said, "High-street shopping areas are existing since ages.

It is expected that they will do well, in spite of organised retail coming in. Retailing is a new phenomenon as far as Indian consumers are concerned. But unfortunately there are not many high streets in India."

The retail supply is limited in inner city locations of high streets. With the customers base exploding over the years, there is a greater demand for products.

Despite the high valuations and the spectre sealing in the non-regularised commercial streets, Delhi's main high streets have been successful in targeting consumers, as well as national and international retail brands.