The Hindu Business Line : `Delhi could be next global retail destination'

Following the footsteps of Dubai, Singapore and Hong Kong, Delhi is slated to be the next big retail destination, according to a survey sponsored by the Confederation of Indian Industries (CII), whose findings show that the Capital city has the right conditions and resources available to make it one.

The survey says that Delhi, right from its inception, has been a city that represents a confluence of trade from around the world, even though it does not have its own produce to boast of. In other words, the city has been a retailing hub right from its birth. Statistics prove this fact. Out of the total earnings of the Government of Delhi of Rs 11,000 crore, Rs 6,500 crore is achieved from the retail sector. A family in Delhi spends Rs 2.1 lakh per annum on an average, while it saves Rs 50,000. More than 40 per cent of a family's spending is on food, clothes and entertainment.

Well balanced

An interesting feature of Delhi is its even spread of wealth and also that there are retail value propositions for every income level, which makes retail in Delhi well balanced, right from big retail chains to the small kirana stores. Add to this, the fact that the city is growing as a hub for tourists, which includes medical tourism. An estimated 20,000 foreigners came to Delhi in 2005 to use its medical facilities. Delhi is also a big hub for quality education and thousands throng the city every year to study in its esteemed institutions.

Need for vision

In spite of these favourable conditions, there is a need for a vision that will identify and classify between direct and consumer retailing both in terms of organised and unorganised retail and in terms of formats. Of the over 2.5 lakh retail points in Delhi, 98 per cent are in the unorganised sector, of which over 100,000 are actually street hawkers. In fact, these hawkers provide 90 per cent of the trade value, which points out that street vendors cannot be ignored.

Thus, Mr Rajan Chhibba, Managing Director, Intrim Business Associates, the firm which conducted the survey, says, "There is a need for a single point agency to monitor the retail sector. There should be a given guideline, integrated planning, theme retailing, proper linkage with the transport system where Delhi Metro Rail Corporation will play a big role." There is also a need for organising the hawkers and creating women safety for shopping in the city to prosper, he added.

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