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Why Bengaluru ranked second on retail attractiveness index

Kearney's index tracked the potential and attractiveness of over 800 Indian cities for various organized retail categories such as apparel, jewellery, electronics, footwear, food and grocer. Photo: Reuters (MINT_PRINT)Premium
Kearney's index tracked the potential and attractiveness of over 800 Indian cities for various organized retail categories such as apparel, jewellery, electronics, footwear, food and grocer. Photo: Reuters (MINT_PRINT)

  • The country’s IT capital and start-up hub has evolved to attract more upmarket shoppers, who are adept at shopping online and have affinity towards organized and branded retailers

New Delhi: India's IT capital Bengaluru ranked second on the Kearney retail index released Thursday, overtaking Mumbai in the 2021 edition of the report.

Kearney noted Bengaluru’s brand penetration per capita is higher when compared to Mumbai making it attractive for retailers. The cities of Mumbai and Delhi have typically been a big draw for retailers.

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The report shows how the southern city, and the country’s IT capital and start-up hub, has evolved to attract more upmarket shoppers, who are adept at shopping online and have affinity towards organized and branded retailers.

“Our research indicates that despite a lower population, Bangalore has a higher per capita income and much higher level of spending and consumption in key sectors like apparel, footwear, food and groceries, electronics etc. In Bangalore, level of awareness and affinity towards organized retail and e-commerce is much higher, and combined with lower rentals, the brand penetration (per capita) is higher compared to Mumbai, and climbing," said Manoj Muthu Kumar, Principal, Kearney.

These factors give Bengaluru a good future outlook and therefore rank it just above Mumbai in the retail index, said Kumar.

More recently, Bengaluru was also named the most liveable city in the country, within a pool of a cities with a million plus population. In a recently revealed Ease of Living Index 2020 by the ministry of housing and urban affairs, Bengaluru emerged as the most liveable city in the million plus population category in 2020.

The index tracked the potential and attractiveness of over 800 Indian cities for various organized retail categories such as apparel, jewellery, electronics, footwear, food and grocery etc. Kearney’s Index rates each city on a variety of parameters that contribute to the overall retail market attractiveness of a city including economic, demographic, consumption, infrastructure, and ease of operations parameters. In addition to retail attractiveness, the index also factors penetration of modern trade and consumer adoption to e-commerce adoption within these cities.

Within Kearney’s rankings Delhi, Bangalore, Mumbai, Chennai and Kolkata continue to lead as the top five retail destinations when it comes to e-commerce adoption as well as presence of power brands, and per-capita expenditures across key product categories.

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