With the changing demographics and improvement in the quality of life of the Indian population, the country’s retail sector is witnessing tremendous growth. This is where the retail sector market is expected to reach $1.1 trillion by 2027 and $2 trillion by 2032, as per the report by the National Investment Promotion and Facilitation Agency. The report further highlighted that the current retail boom is being driven by the growing prosperity of India's consuming class, the rise of a new generation of retail entrepreneurs, the entry of foreign competitors, and increased urbanisation.
India is now the world's fifth-largest global destination in the retail space. The country has one of the highest rates of retail store availability per capita in the world. The retail industry in India was growing at an exponential rate, with retail development taking place not only in big cities and metros but also in rural communities. However, among various places, Delhi NCR has emerged as one of the most popular hotspots because of its success in delivering both quality and quantity of projects in both the residential and commercial sectors.
It is, thus, safe to say that the Delhi National Capital Region (NCR) has emerged as a popular choice for top-tier firms looking to create retail centres. So, let's delve into the reasons why top brands are choosing Delhi as their retail hub.
Rising Affluence with Increasing Population: India has now become a populous country with 1.486 billion people. This is where Delhi-NCR has also become one of the most populous regions in India, with a large and diverse consumer base. The area encompasses Delhi, the capital city of India, along with surrounding urban areas in Haryana, Uttar Pradesh, and Rajasthan. This provides brands with access to a substantial market and a wide range of consumer preferences. Furthermore, given the increased population, the Delhi NCR region has witnessed significant economic growth, leading to an increase in disposable income and consumer spending power. As a result, top-notch brands are finding lucrative customer bases that are willing to invest in high-quality products and experiences.
Excellent Infrastructure: To establish a retail store, the location's infrastructure must be adequate. The retail chain's growth can be hampered by expenditure and availability on both accounts. The lack of secondary infrastructure also has an impact on retail logistics and supply chain management. Thus, due to significant infrastructure development, it is no surprise that the retail sector in Delhi-NCR has gained significant traction in recent years. Delhi NCR has seen various evolution, including the expansion of highways, the construction of new metro lines, and the development of modern retail spaces such as shopping malls and high-street locations. As a result of this infrastructure development, brands have been able to establish retail outlets in high-traffic areas with high visibility and accessibility.
Access to a Skilled Workforce: The presence of India's vast bureaucracy and political system in Delhi NCR has aided in the development of a cosmopolitan city, attracting people of various ethnicities and cultures. This is where Delhi-NCR has drawn in a pool of skilled talent by housing several prestigious educational institutions and professional training centres. This talent pool can be used by brands for a variety of roles such as sales, marketing, customer service, and management, ensuring a skilled workforce to support their retail operations. Thus, due to the dramatic rise of the skilled workforce, top-notch brands are choosing Delhi-NCR as their retail hub.
All Things Considered!
In a nutshell, the strategic location of Delhi NCR, combined with its large consumer base and well-developed infrastructure, makes it an appealing market for retailers and investors looking to capitalise on the commercial real estate sector's potential. The dynamic economic environment and growing population of the region make it an ideal location for retail expansion and long-term business growth. As a result, the aforementioned factors are collectively making Delhi-NCR an attractive and appealing destination for top-notch brands to establish their retail hubs.
