The retail landscape in India is undergoing a dramatic transformation, driven by a growing consumer demand for experience-based entertainment. According to a new survey conducted by CBRE and Invest India, over 70% of respondents across various age groups now prefer engaging in participatory activities such as bowling, amusement parks, rock climbing, escape rooms, and children's play zones. These interactive experiences are becoming increasingly popular, leaving behind passive entertainment options like museums or art exhibitions.

This shift is documented in the “Retail Level-Up - The Entertainment Edition” survey, which emphasizes the rising importance of immersive, participatory entertainment in driving consumer behavior. Gen Z consumers, in particular, are at the forefront of this trend, showing a strong preference for high streets and standalone experience centers, which suggests a clear move away from traditional malls as the primary retail destination.

Consumer Spending Trends on Entertainment

The survey, which collected feedback from over 700 respondents across major cities in India, reveals a key insight: nearly 90% of respondents are willing to allocate up to Rs. 4,000 (US$ 47.21) per month on entertainment. Among them, the Rs. 1,000-2,000 range (US$ 11.80-23.60) is the most popular spending bracket, reflecting a rising appetite for immersive and enjoyable leisure activities.

The trend shows that experience-driven entertainment is no longer a luxury but a core part of consumers’ lifestyles, particularly in urban centers where disposable incomes are higher, and access to entertainment options is readily available. Notably, 65% of respondents expressed a preference for entertainment options that combine immersive experiences with food and beverage services, underscoring the growing demand for multi-sensory, integrated entertainment spaces that allow consumers to spend more time in a single location.

The Evolving Retail Real Estate Landscape

The findings of the survey also indicate that this shift towards experience-based entertainment is fundamentally reshaping India’s retail real estate. Developers and retail strategists are increasingly focusing on family-friendly entertainment formats and children’s entertainment centers, recognizing that these offer an excellent way to attract footfall and engage customers of all age groups. This transformation is not limited to metro cities but is also spreading to Tier-II cities, where high-quality entertainment formats are performing well.

Mr. Anshuman Magazine, Chairman & CEO of CBRE for India, South-East Asia, Middle East & Africa, commented on the trend, highlighting that experiential formats such as family entertainment centers and children’s play zones are becoming central to the mall strategies in India. These formats not only enhance tenant mixes but also offer developers a clear path to future-proof their assets as demand for traditional retail shopping areas begins to decrease.

Placemaking and Consumer Engagement in Retail

According to Mr. Ram Chandnani, Managing Director of Advisory & Transaction Services at CBRE India, developers are now emphasizing the concept of placemaking—creating environments that provide customers with dynamic and engaging experiences. These include features like experiential dining, green zones, and large-format stores, alongside regular community events that foster deeper connections with shoppers.

As the retail real estate landscape continues to evolve, it’s becoming clear that dynamic, experience-driven models will be key to attracting consumers. The emphasis on entertainment centers, high-quality leisure spaces, and community-driven events is now seen as essential for businesses aiming to remain relevant and engage customers in the long term.

The Future of Experience-based Retail in India

The shift towards experience-driven retail models is not just a trend, but a long-term transformation in India’s retail industry. Developers and retailers must be agile in their approach, creating environments that encourage participation, foster community spirit, and support multi-sensory experiences.

In the coming years, we can expect to see even more immersive entertainment formats integrated into the retail sector, such as:

• Themed escape rooms

• Indoor adventure parks

• Interactive exhibits

• Concerts and live events

Moreover, the integration of technology and virtual reality (VR) in retail environments will provide even more innovative ways for consumers to interact with brands and products, further enhancing the customer experience.

Impact on Retailers and Developers

For retailers, this shift in consumer behavior presents an opportunity to innovate and rethink the traditional store format. Retailers can increasingly offer unique, experience-based shopping that goes beyond product sales, integrating entertainment, dining, and even socializing into the shopping experience. Developers, on the other hand, must adapt their strategies to build multi-use spaces that blend retail, entertainment, and dining, catering to the demand for active engagement from customers.

In addition, experience-driven entertainment has the potential to attract a diverse demographic, from young Gen Z consumers seeking exciting adventures to families looking for fun, safe, and engaging activities for their children. This shift is also likely to boost local economies, providing new job opportunities in the entertainment, hospitality, and retail sectors.

Conclusion

India’s retail landscape is rapidly evolving as experience-driven entertainment takes center stage, reflecting the changing preferences of today’s consumers. The CBRE & Invest India survey underscores the importance of immersive, participatory experiences, especially for Gen Z consumers who are shifting away from traditional malls. For retailers and developers, the future is clear: success will be defined by their ability to create engaging, dynamic environments that integrate entertainment, dining, and community interaction, ensuring that they remain a central part of consumers' evolving lifestyles.

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