Feb 23, 2012

Luxury retailing in India- it's haute!

"Do you wanna know what comes between me and my Calvins? Nothing."
--this iconic line by a certain teenager named Brooke Shields catapulted her into instant fame and, in a way underlined the influence of brands in defining our social fabric.

DLF Emporio Mall, New Delhi
A gentle breeze swept across my face as I entered the DLF Emporio Mall in New Delhi. For one moment it felt like I was in another world- someplace like Milan's Via Monte Napoleone, London's Bond Street, or the venerable Fifth Avenue in New York... a smorgasbord of everything fashionable and haute! Emporio is India's answer to other International fashion capitals-- concierge service, 5-star ambience, presence of revered brands like Dior, Gucci, Armani and Louis Vuitton and a shopping experience that is purely world class. Having said that, Emporio Mall is targeting only the creamy layer of people in the Wealth pyramid, but it serves as a shining example of the good things happening with Indian Luxury retailing at present.
Every brand has a story to tell... and the aura of exclusivity coupled with high income elasticity of demand takes care of the economics for premium goods. Gone are the days when the typical well-heeled Indian had to travel overseas to buy their favorite designer labels or ask their non-resident friends to grab the stuffs from Duty-Free stores. Almost all major Indian metros are now warming up to premium and ultra premium retail experience although retail space still remains a prime concern. Due to prohibitive real estate prices, many of the premium labels are increasingly looking at operating from luxury malls than from 5-star hotels.

Key Challenges:
  • Lack of dedicated retail Space; fashion high street
  • Expensive real estate; which significantly hits the bottom-line
  • Increasing the client base; target the high income population
  • Improve service offering
  • Establishing 'Luxury' as a need among Indian customers
  • Focus on affordable luxury for Indian customers
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1 comment:

Country Reports said...

The Indian Retail industry market has grown at a CAGR of 14.6% for the period FY07-12(p). The said growth can be attributed to the growing Indian market, improve in Private Final Consumption Expenditure (PFCE) & the change in consumption pattern of the Indian population. The changing consumption pattern, in turn, primarily remains driven by higher standard of living, growing middle-class population, greater percentage of working women; improve in penetration levels of organized retail etc.