Tuesday, 18 November 2014

E-COMMERCE TO BOOST REAL ESTATE


 Monthly Magazine of Property Matter


The real estate industry in India is expected to benefit hugely by the rapidly growing e-commerce firms in the next seven years. India is expected to account for over 60 per cent or over one hundred million new e-commerce users according to Anshuman Magazine, chairman and managing director, CMD, CBRE South Asia Pvt. Ltd.

The e-commerce industry needs deliveryefficiency, inventory management, and freight-forwarding and this will be driving the need for experienced logistics operators in the region.

A significant share of this fresh foreign fund inflow of $3 billion that has come to Flipkart and freshinvestment by Amazon etc., is expected to get channelised into buildingwarehouses, expanding product line, upgrading and expanding supply chain, and possible acquisitions.

Amazon is already known to be planning to lease more than 1 million sq.ft of warehousing and logistics space by end-December, while Flipkart has reportedly leased around 500,000 sq.ft of space across the country, according to CBRE.

Global fashion apparel retailers, such as River Island, Dorothy Perkins, New Look, Blue Saint, and Vans, have entered into exclusive tie-ups with leading Indian online retailers for selling theirmerchandise, rather than setting up brick-and-mortar stores.

They are still testing the waters says CBRE so have left it to their retail partners to take care of the stocking and inventory. Going forward, one can only wait and watch for these developments to solidify in a more mature online retail environment said CBRE.

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