New Delhi: India is the 44th most preferred retail destination in the world, according to a report that maps global footprints of 250 of the world’s top retailers by real estate consultancy firm CB Richard Ellis.
The report looks at globalization of the retail industry and ranks countries according to presence of global retailers in the markets.
The study ranks the UK as the current global leader in terms of international retailer presence, with 55% of the retailers surveyed present in that country. Spain is second with 51% of the retailers present in the market.
Out of the Bric (Brazil, Russia, India and China) countries, China and Russia are in the top 10 of the rankings while India and Brazil are lower down in the order. “This is primarily due to foreign direct investment restrictions in retail and also relatively lower average per capita income in the country,” said Anshuman Magazine, chairman and managing director of CB Richard Ellis, South Asia.
India currently bars multiple retailers such as Wal-Mart Stores Inc. and French retailer Carrefour SA from selling products directly to consumers.
However, these companies can have 100% ownership in ventures selling multiple products to other retailers and businesses.
The country allows up to 51% foreign stake in single-brand retail businesses that sells multiple products under a single brand name such as Nike or Marks and Spencer.
The Indian government is awaiting a study by a New Delhi think tank that would gauge the impact of larger modern retailers on the small and unorganized sector.