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Experience economy and the substantial demographic dividend have led to the growth of the entertainment sector in the country. There is a significant shift in the Indian retail landscape, with Indoor Amusement Centers (IACs) emerging as a key driver of footfall and consumer engagement, according to a report by JLL India. The report "Game on! Entertainment as the new frontier in Indian retail," to be unveiled during the MAPIC India (Formerly IRF) event on 18th -19th September 2024, deep dives into why and how the Indoor Amusement Centers (IACs) are becoming increasingly important in the Indian retail landscape.
It is seen that Indoor Amusement Centers are becoming one of the major specialty anchors in retail developments. Multiple Indoor Amusement Centers are now present in prominent shopping malls. Currently, over 90 malls across the country host multiple IACs. The report further indicates that India currently has about 6.6 million square feet of operational IACs across over 500 centers in 83 cities. This stock is expected to grow significantly, potentially reaching around 11 million square feet by 2028, representing a 67% increase from current levels.
As developers recognize the importance of IACs in attracting visitors and boosting overall retail performance, the entertainment category is increasingly being integrated into initial mall design phases. This data-rich report underscores the transformative role of entertainment in India's retail sector, pointing to a future where immersive experiences will be central to retail success.
In terms of regional concentration, majority of the IACs in India are located in South India, primarily in Bengaluru, Hyderabad and Chennai. North India has the second highest concentration of IACs in the country, led by the National Capital Region and followed by Ludhiana and Lucknow. Western part of the country ranks third, with Mumbai Metropolitan Region (MMR) and Pune leading the pack.
Both homegrown and international operators are fueling the rapid development of Indoor Amusement Centers throughout India. Prominent global players have already established a presence in India. Domestic operators are also expanding aggressively across the country and entering newer markets. Notably, some Indian operators are introducing premium formats that offer high-end gaming and dining experiences. This trend reflects the evolving preferences of Indian consumers and the diversification of entertainment options in the country.
