Chennai, often called the “Cultural Capital of South India” is located on the Coromandel Coast in Tamil Nadu. Served by two major ports, Chennai is a major economic, commercial and educational hub.
The coastal city has a diversified economic base supported by manufacturing, automobiles, software services, hardware manufacturing, IT- Business Process Management, healthcare and financial services industry.
Also known as the “Detroit of India,” it has strong potential for the growth of ancillary industries like automobile components and logistics which only adds to its contribution to state revenues. Additionally, the city has been witnessing a steady increase in the number of tourists arriving each year. With increasing presence of both domestic and international retailers, interest continues to be on the rise in main streets like Pondy Bazar, Usman Road, Cathedral Road, Adyar and Anna Nagar 2nd Avenue as well as shopping malls like Phoenix Market City, Express Avenue Mall and The Forum Vijaya, thereby paving the path for a more contemporary and fashionable approach to the city’s retail climate.
OMR is the IT hub of the city with 25-30 % of the total commercial space of the whole city concentrated in this area. The area is characterized by a young cosmopolitan crowd due to comparatively lower residential rentals. The presence of a young catchment with high disposable incomes has attracted retailers to establish their presence in the area.
KHADAR NAWAZ KHAN ROADKhadar Nawaz Khan Road, also known as KNK Road, is the corridor of the city’s elite, lined with fashionable boutiques, swanky eateries, salons, art galleries and lifestyle showrooms. A healthy mix of food & beverage (F&B) outlets offer delectable international cuisines whilst the presence of premium brands in the shopping precinct, New Bergamo, makes the area a luxury shopping destination frequented by cosmopolitan shoppers.
T.NAGARThyagara Nagar, abbreviated as T. Nagar, is one of the oldest residential neighborhoods which has eventually grown to be “the massive shopping district” synonymous with Chennai’s ethnic apparels and jewellery. Pondy Bazaar, North Usman Road, South Usman Road and GN Chetty Road are the four prominent retail main streets in T.Nagar, with both organized and unorganized retail developments. New retailers from apparel, jewellery, footwear and electronics are continually looking to expand footprint in this retail hub to capitalize on the attractive residential catchment.
ANNA NAGAR 2Nd aVENUEAnna Nagar 2nd Avenue is an established retail main street encircled by an up-market residential catchment. The main street, which is the pulse of retail in the western suburbs of the city, gives a holistic shopping experience with the presence of both local and foreign brands across apparel, lifestyle, jewelry and F&B outlets.
VELACHERYVelachery has transformed into an epicentre of retail activity in South Chennai. With one main street and two shopping centres, this retail destination connects the IT corridor, CBD and other parts of the city. Phoenix Market City houses a variety of national and international labels along with a multiplex and upmarket restaurants and is a preferred destination for the city’s young shopoholics. Velcahery 100 Feet Road main street offers shoppers a plethora of choices with lifestyle showrooms, F&B outlets and a range of shopping options along with the recent opening of PS Grand Mall.
RAJIV GANDHI SALAIRajiv Gandhi Salai, or OMR, is the IT hub of the city. The area is characterized by a young cosmopolitan crowd due to comparatively lower residential rentals. The presence of a young catchment with high disposable incomes has attracted retailers to establish their presence in the area.
PHOENIX MARKET CITYPhoenix Market City, located on Velachery Main Road, has revolutionised the retail and entertainment experience in the city. It became operational in 2013 and is spread over a million square feet. The shopping centre houses more than 300 stores and has brought some of the biggest brands such as Manchester United, Steve Madden, Zara, Promod, Superdry, Kenneth Cole and Brooks Brothers into the city. A good product mix coupled with several flagship stores of major national and international brands, Chennai’s first IMAX theatre, food court, fine dining restaurants and cafes have made Phoenix Market City an ideal destination mall for all age groups, attracting footfall from all over the city.
EXPRESS AVENUE MALLExpress Avenue Mall opened in 2010 and became the first development of its kind in the heart of the city, sprawling four floors of retail space measuring 800,000 sqf. It hosts more than 200 brands, featuring prominent retailers such as Burberry, Mango, The Body Shop, Krispy Kreme, Forever New and Starbucks. Its central location coupled with an eight-screen multiplex sprawling 40,000 sqf and food court helps attract both local shoppers and tourists.
THE FORUM VIJAYA MALLThe Forum Vijaya Mall measuring a total of 700,000 sqf is strategically located on Arcot Road and attracts shoppers from western suburbs of Anna Nagar, Vadapalani, Koyambedu, Porur, Ashok Nagar, and K.K. Nagar amongst others. The mall, which has more than 100 shops and Chennai’s biggest hypermarket, Auchan, has high visibility from JN Road and Arcot Road, offering great signage opportunities. Connectivity to other areas via a nearby bus terminus, along with an imminent Metro Station, will enhance the appeal of this shopping mall.
|KEY AREAS / STREETS/SHOPPING CENTERS||CONSUMER PROFILE||MAJOR RETAILERS PRESENT||NEW ENTRANTS||AVERAGE RENT (PSFPM)||RANGE OF STANDARD UNIT (SF)|
|Khaddar Nawaz khan road||Affluent, Upper & Mid Segment||Haagen-Dazs, Calvin Klein, Toni & Guy, Evoluzione, Tag Heuer||Simply Sofas, Mecnhie’s Frozen Yoghurt, Lavash||$3.3 - $3.8||1,700 - 4,000|
|T. Nagarar||Local shoppers,Mid & Affordable Segment||Nalli, Pothy’s, Tanishq, Big Bazar, Sarvana Stores, Joyalukas||FabIndia, Woman’s World, Westside, Absolute Barbecue & Grill||$2.0 - $2.6||500 - 5,000|
|Anna Nagar 2nd Avenue||Local shoppers, Upper & Mid Segment||Tanishq, Woodland, Levi’s, Louis Philippe, Croma||Starbucks, Nalli Jewellers||$2.3 - $2.7||1,000 - 3,000|
|Velachery (including Phoenix Market City, The Grand Mall)||Destination shoppers, Affluent, Upper & Mid Segment||Adidas, Samsonite, Titan, Nike||Hamley’s, Hard Rock Cafe||$2.1 - $4.9||1,000 - 3,000|
|Royapettah (Express Avenue Mall)||Destination shoppers, Upper & Mid Segment||Burberry, Mango, Tresmode, Vero Moda, Lifestyle||Starmark, Woman’s World, Krispy Kreme||$4.9 - $5.5||500 - 3,800|
Data as of July 2015. Exchange rate at time of conversion to USD: 1 USD = 62.24 INR
F&B retailers within the city are influenced by the regional cuisines. Some local players have redefined fine dining by infusing global flavour into local taste. Sarvana Bhavan, Adyar Ananda Bhavan, Dindigul Thalappakatti, Sangeetha’s and Murugan Idly Shop are the major local players, appealing to people across all ages, classes and origins, as well as tourists who wish to treat themselves to a taste of local flavours.
The city offers an interesting combination of quick service chains, cafes and boutique eateries for those with an appetite for fast food as well as fine dining. Chennai has multiple quick service restaurants across the city such as McDonalds, KFC, Dominos, Café Coffee Day, Pizza Hut, Krispy Kreme, Marry Brown, and Barista. Some new entrants such as Starbucks are already increasing their footprint in the city by opening new outlets in major malls and main streets. The city also has a number of local F&B brands such Amethyst, Eco Café, Kipling Café, Yummy Doughnuts and Cup ‘o Café which are favorite meeting places among the young populace comprising students and professionals alike.
The city also offers a variety of fine dining options which are popular amongst affluent consumers, business travelers, tourists and the expat population. From an array of Italian, mediterranean, oriental, continental, seafood and north Indian restaurants to choose from, Chennai has something to offer to everyone. Whilst old favorites such as Sandy’s, Tuscane Pizzeria, Cream Centre, Sigree, Moti Mahal and Mainland China remain favorites, new entrants such as Bombay Brasserie, Kitchen 187, Lavash and The Manhattan Fish Market are becoming increasingly popular. Though the nightlife in the city is restricted due to the government regulations, the city has some vivacious places to lift the spirits of party goers.
|KEY AREAS||CONSUMER PROFILE||FOOD & BEVERAGE OPERATOR INCLUDING||RENT FOR 3,700 SF UNIT (PSFPM)|
|Khaddar Nawaz Khan Road||Affluent, Cosmopolitan, Upper and Mid- Segment||The Cascade, Tuscana Pizzeria, Kebabs @KNK, Jakob’s Kitchen Affluent, Cosmopolitan, Upper and Mid- Segment Five senses, Cream and Fudge, Lavash||$2.8 - $3.4|
|T. Nagar||Mid-Segment, Locals, Tourists||Ten Downing, Street, Bike and Barrels, Sarvana Bhavan, Murugan Idly, Woodlands, BBQ Nation||$1.3 - $2.1|
|Velachery (including Phoenix Market City, The Grand Mall)||Affluent, Cosmopolitan, Upper and Mid- Segment||KFC, Dominos, Mast Kalandar, Anjappar, Nalas Appakadai, Shree Krishna Sweets and Adyar Anand Bhavan||$1.3 - $4.8|
|Anna Nagar 2nd Avenue||Upper and Mid-Segment, Locals||Shree Mithai, KFC, Marry Brown, Dhabha Express, Murugan Idly, McDonalds||$1.6 - $2.2|
|Alwarpet||Affluent, Cosmopolitan, Upper and Mid- Segment||Old Madras Baking Company, Lloyd’s Tea House, Teppen, The French Loaf, New Town, Benjaorng, Spoonbill||$1.6 - $2.4|
Data as of July 2015. Exchange rate at time of conversion to USD: 1 USD = 62.24 INR
Nandini Taneja BhatiaAssociate Director, Retail Services
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