Delhi-NCR (National Capital Region) is emerging as a large advertising market as a result of its evolution as a large consumer and retail market over the years.
According to a recent report by consultancy Knight Frank and the Retailers Association of India, India's NCR is second only to the Mumbai Metropolitan Region (MMR) in terms of total retail market size. It stands at Rs 1.21 lakh crore now versus MMR's Rs 1.41 lakh crore. While the NCR total retail market size will touch Rs 1.91 lakh crore versus MMR's Rs 2.24 lakh crore by 2019, it is the rate of growth which makes the picture clear as to where the retail potential truly lies.
NCR's total retail market rate of growth is 58 per cent over two years versus MMR's 59 per cent, almost neck and neck, says the study.
If modern retail alone is taken into account then NCR trumps MMR hands down, the report says. NCR has the highest penetration of modern retail in India at 26 per cent versus MMR's 14 per cent. In terms of market size, total modern retail size in NCR currently stands at Rs 31,900 crore versus MMR's Rs 19,400 crore, the study says.
By 2019, NCR will touch Rs 63,000 crore versus MMR's Rs 38,100 crore in terms of its modern retail size. While this works out to a rate of growth of 96-97 per cent in both cases, NCR is expected to stay ahead of MMR in the foreseeable future, since retail penetration in NCR remains higher than MMR, experts said.
In terms of key product categories such as foods & beverages and apparel too, NCR is ahead of MMR in terms of consumption.
The study says that NCR's modern retail size when it comes to apparels currently is Rs 12,400 crore versus MMR's Rs 5,600 crore. Similarly, in F&B in modern retail, NCR has a market size of Rs 5,700 crore versus MMR's Rs 3,300 crore.
In terms of real estate activity too, NCR remains the largest property market in the country, both for residential and commercial needs.
The congregation of retail, consumer and real estate activity has combined to push up advertising growth of the Delhi-NCR belt.
According to experts, Delhi-NCR could cross MMR's ad market size of nearly Rs 12,000 crore this year, after touching nearly Rs 11,000 crore last year.