Indian Brands Dominate High Streets, Reinforcing Local Preferences » Capital News

May 8 – Indian brands are asserting their dominance in the retail market landscape, occupying a staggering 87 percent of stores on high streets, according to a report by Knight Frank India, a property consultant. These brands are strategically positioned to cater to local preferences, choosing locations either in close proximity to their target audience or benefiting from historical and cultural significance.

In Tier 1 cities, where 34 high streets are located, Indian-origin stores command a massive presence, totaling 5,232 compared to just 725 international-origin stores. Similarly, in Tier 2 markets, Indian brands overwhelmingly dominate with 1,106 stores out of a total of 1,289, leaving only 183 for international-origin stores.

Shishir Baijal, Managing Director of Knight Frank India, highlighted the resurgence of retail high streets, particularly in Tier 1 cities, despite challenges like inadequate infrastructure. He anticipates that the establishment of new mobility infrastructure will further catalyze the resurgence of prime high streets, reaffirming their status as premier destinations.

The report also reveals significant rental growth, with Connaught Place in NCR witnessing a remarkable 33 percent year-on-year increase, followed by high streets in Bengaluru like Hennur Main Road and Commercial Street, with 20 percent and 17 percent growth in rentals, respectively. Among Tier 2 cities, Guwahati-Shillong Road recorded the highest rent appreciation at 38 percent, indicating a promising market.

Apparel dominates the retail market across high streets, contributing 29 percent, followed by food and beverages at 18 percent, underscoring the importance of dining options for consumers. Accessories cover 17 percent of high street retail.

Knight Frank India’s report, titled ‘Think India Think Retail 2024 – Shopping Centre and High Street Dynamics Across 29 Cities,’ projects a potential consumption of nearly USD 3 billion across 58 high streets in 29 cities for 2024-25. The report estimates a total of 7,246 operational stores on high streets, predominantly in Tier 1 markets. In 2023, the National Capital Region (NCR), Bengaluru, and Hyderabad emerged as the top three cities with the highest number of stores.

Khan Market in NCR commands the highest rent, ranging from Rs 1,000-1,500 per sq ft per month, followed by DLF Galleria in Gurugram, further solidifying the market presence of Indian brands on high streets.

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