With retail realty players looking to tap the potentials of tier II and III cities in India by coming up with new commercial and retail properties, the domestic retail sector is expected to get a huge boost
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| Nityanand Sonthalia, director of Shriram Ozone Group of Companies |
In recent years, tier II and III cities and smaller towns in India have undergone a lot of change. Needs and desires of people in these parts of the country have increased to a great extent. A whole new breed of small town Indian celebrities has emerged in sports, politics and business and their endeavours and achievements have captured the imagination of people in these towns. As a result, a part of India that was tucked away earlier is now hogging the limelight. The world has also woken up to the opportunity that this new India provides. Therefore, opportunities that were earlier only available in metro cities have now begun to open their umbrellas in these places as well, and its biggest beneficiary has been the domestic retail sector.
Brands, both big and small, have started penetrating deeper into the small cities of India and have been gleefully accepted by these new ‘global’ Indians. The market sizes, consumer preferences and lifestyles in these places have taken quantum leaps. As a result, India has re-emerged as marketers’ delight, with retailers now trying to reach out to more and more consumers across the country. ‘Organised retail’ and ‘mall mania’ that were unknown even a few years ago in these parts of the country, have now become household words.
Retail properties attracting corporates
Developing cities like Dhanbad, which is the second largest city of Jharkhand, has a number of commercial and retail properties that attract leading national and international corporates to set up their business in the city. Retailing can gradually become a backbone of the economy in these places. With emergence of more value-based brands, tier II cities can become places of great potential for them. At the same time, niche retail brands will also have their selected markets in smaller cities. The Indian consumers will also be benefited by having more choices at competitive rates and superior quality.
Emergence of malls in tier II cities
Malls are playing a significant role in boosting the business of retailers. This self-contained destination encompasses apparels, accessories, footwear, food and beverages, entertainment, movies and various other provisions in its repertoire. In a bid to reach out to more customers across the country, malls are now coming up in tier II cities as well. Like metro cities, small towns also need avenues for family outings and value-based shopping, which a mall can fulfil. Dhanbad has recently got one such mall - Ozone Galleria, developed by Shriram Ozone Group of Companies. It is the first global super mall for the states of Jharkhand and Bihar. If this venture proves successful, many other retail properties may come up in tier II and III cities, which in turn will gradually transform these cities into social and economic epicentres of the country. Development of the super mall in Dhanbad may pave new avenues for the big corporates and can be a model for new entrants to follow in the future. This can also open up more employment opportunities for the local people, thereby uplifting their lifestyles and spending capacity.
Nityanand Sonthalia, director of Shriram Ozone Group of Companies, large-sized retail realty firm in Kolkata |
