The Economic Times: September 27, 2011
Berlin: India may not have opened its retail industry to foreign investors yet, but it's the most preferred new destination for global retailers who bet on emerging markets to offset worsening economic conditions in the developed world. India topped the list in a survey of 323 international retailers about the markets they entered for the first time last year, done by property agents CB Richard Ellis.
"If many retailers are already entering the Indian market, then I don't think there is so much of an entry barrier," said Neville Moss, director - head of EMEA Retail Research at CB Richard Ellis. "International retailers will just be more confident on the sense of ownership given in a foreign country," he added.
That could by why several delegates of global retailers at the annual World Retail Congress in Berlin seem to have taken a wait-and-watch approach to investing in India. "We think India has the potential but, honestly, we haven't even studied the market yet," said Janet Grove, vice chair at US department stores chain Macy's, which is now gung ho on China. "India is down the road, but first will be China." According to the CB Richard Ellis study, which covered 75 countries, eight retailers entered India last year while seven entered second-placed Turkey.
In terms of international retailers present in a country, India still ranks 35 with just about one-fourth retailers present in the country. China is ranked seventh, with 46% retailers' presence, in the list topped by the UK with 57.6% retailers present in 2011. New Delhi ranked as the fourth most popular city for new retail entrants at city level. Retailers are increasingly looking at economies such as India and China, which have the best growth prospects and are least likely to be affected by austerity measures.
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