American brands hog Indian retail

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Brands such KFC, McDonald’s and Subway dominate space

Among the global retail brands doing business in India, US retailers lead the chart with 30 per cent brand share followed by retailers from Italy and the UK. While most of the US retailers were present in the mass food and beverages (F&B) market, retail brands from Italy and UK were largely concentrated in the luxury segments. Retail brands from Italy accounted for 19 per cent brand share while retail players from UK, France and Germany accounted for 16 per cent, 10 per cent and 8 per cent brand share respectively.

In an effort to map and analyse the spread of international retailers, CBRE, a leading global property consultant undertook a research study of more than 300 prominent global retailers to identify their operating trends, expansion strategies, and extent of penetration across leading cities.

An analysis of these brands by their country of origin revealed that US brands accounted for the bulk of global retailers present in the country. The expanding retail footprint of global brands in India has been a major growth driver of retail real estate in the country. Comprising nearly 30 per cent of the total brands analyzed for the CBRE study, most US retailers were present in the F&B category in India.

“As mentioned, US brands have a dominant position in the F&B category. Popular brands such as McDonald’s, KFC and Subway to name just a few players present in India are now in the process of expanding rapidly across Indian cities,” said Anshuman Magazine, chairman and managing director, CBRE South Asia.
While most brands originating from the US and UK have a wider presence in the fashion and apparel segment, Mr Magazine pointed out that almost 60 per cent of the brands from Italy happen to be in the luxury category.
According to CBRE, Spanish retail brands such as Mango and Zara have also made a major impact on fashion trends since their entry.

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