The First Ring: Roots
CHRONICLES
Chapter 1.13
In Asian countries outside of Japan and China, department stores emerged predominantly due to the influence of European colonists and international trade in the late 19th and early 20th centuries. In particular, countries under British colonial rule, such as India, Singapore, and Malaysia, saw the establishment of the first shopping malls similar to modern department stores.
Meanwhile, other Asian countries like Korea, Indonesia, and the Philippines developed the concept later, during or after the mid-1900s. Many of these stores are still in business today and continue to play a central role in retail trade across Asia.
In the context of fast-growing Asian economies, India and South Korea stand out not only for their industrial and technological might but also for the growing role that department stores play in shaping the retail landscape. The expansion of department stores in these two nations reflects their economic and cultural transformations, with the rise of an increasingly affluent middle class and a growing demand for sophisticated shopping experiences.
In India, department stores have seen considerable development since the 1990s, with chains such as Shoppers Stop and Lifestyle ushering in the era of the modern department store. Similarly, in South Korea, major players like Shinsegae and Lotte have dominated the retail scene, evolving into luxury and lifestyle destinations that continue to reflect the country's dynamic economic growth.
India, with its rapid economic growth, is emerging as an increasingly significant player in the global economy, boasting a nominal GDP of approximately USD 3.7 trillion. One of the sectors undergoing remarkable development is retail, particularly the expansion of department stores, which is reshaping the shopping landscape across the country.
The concept of department stores is relatively new to India and has evolved gradually over time. During the colonial period, cities like Calcutta (now Kolkata) were home to some of the first department stores, primarily serving British customers and the Indian elite. These early establishments, such as the renowned New Market (established in 1874), introduced the concept of shopping under one roof. However, they were typically smaller in scale and more limited in scope compared to modern department stores.
A turning point came in 1991 with the opening of Shoppers Stop, which marked a true revolution in organized retail in India. Widely regarded as the country’s first modern department store, Shoppers Stop transformed India’s retail landscape by offering an extensive range of products, including apparel, electronics, home goods, and accessories. This development helped redefine the shopping experience, providing consumers with a centralized and well-organized environment for their retail needs.
After the success of Shoppers Stop, other department store chains emerged, such as Pantaloons (now part of ABFRL - Aditya Birla Fashion & Retail), Lifestyle (which is part of the Landmark Group, one of the largest retail chains based in Dubai), and Central (part of the Future Group, founded by Kishore Biyani in 1987). These chains continued to grow, introducing international brands and enhancing customer service.
Department stores have transformed the retail landscape in India, evolving from independent shops to large, organized chains. This transformation has led to standardized pricing, a broader variety of products, and a more convenient and sophisticated shopping experience. The expansion of department stores has created new professions, ranging from sales management to logistics, and has also encouraged the inclusion of international brands in the country.
These department stores have introduced the concept of global shopping to India, familiarizing consumers with international brands and new trends. They have influenced consumer preferences, promoting a shift towards higher quality and innovation. The growth of department stores has also spurred urban renewal and the development of shopping malls, transforming various areas in Mumbai, Delhi, Bangalore, and other cities into hubs for shopping, culture, and entertainment.
Shoppers Stop: Remains one of the industry leaders, with a network of stores across the country. It offers a wide range of products ranging from clothing to cosmetics, and has recently strengthened its presence in e-commerce as well.
Pantaloons: With a strong presence in major Indian cities, Pantaloons is known for its wide assortment of apparel, both domestic and international, and an accessible shopping experience for all.
Lifestyle is known for its mix of fashion, accessories, homewares and cosmetics. It has a strong presence in major cities and has consolidated its position in Indian retail.
Central: Another significant player in the Indian market, offering a wide range of products and continuing to expand its store network.
Department stores in India have played a fundamental role in the transformation of the country's retail trade. From the introduction of new shopping models in the 90s to the entry of luxury brands such as Galeries Lafayette, one of the most prestigious department store brands in the world, which plans to open its first store by 2025/2026. These stores have profoundly shaped consumer habits and the Indian economy, creating new opportunities in the retail sector and stimulating the growth of commercial infrastructure.
To be continued..
CHRONICLES
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