The Indian retail market is forecasted to reach $1,750 billion by 2026 from $670 billion in 2017, a growth of over 150 per cent.
Mumbai: The retail mall space in seven top cities in India is set to see a threefold increase in 2019 as the new e-commerce policy is likely to force online retail entities to actively invest in offline stores. With the new e-commerce policy aiming to bring a level playing field between online and offline players, experts said the customer footfalls in retail malls are also likely to go up.
In a report released on Tuesday, property consultancy firm ANAROCK estimates 10 million square feet of fresh retail mall space will come up this year from 3.2 million square feet in 2018.
Anuj Puri, chairman, ANAROCK, said the new e-commerce policy, which came into effect from early this month has compelled online retail giants to realign their business strategies by focusing on expanding their offline presence. “Brick-and-mortar (offline) retailers who were earlier under threat from e-commerce can now look forward to a more level playing field and tap into the rapidly growing Indian consumer market with renewed confidence and business prospects,” he added.
According to the new e-commerce policy, huge discounts offered by large e-commerce players will have to be phased out in two years, which will ensure fair competition between online and brick-and-mortar stores. Additionally, the exclusive tie-ups between vendors and e-commerce firms are also no longer permitted under the new regime.
As per the industry body Confederation of Indian Industry (CII), the retail sector accounted for 10 per cent of India’s GDP and 8 per cent of employment in 2018.
The Indian retail market is forecasted to reach $1,750 billion by 2026 from $670 billion in 2017, a growth of over 150 per cent, the report said. With the evolving consumer base and technological enhancements in the sector, the report noted that omni channel would be the new retail strategy, which will offer shoppers with a unified experience across both online and offline channels.