Indian airports: Alternative destination for luxury retail
By FashionUnited
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Experts say that of the world’s leading 500 global luxury brands, only 30 per cent are present in India as compared to 70 per cent in China. The luxury brands which have entered India include Giorgio Armani, Jimmy Choo, Cartier, Tod’s, Dior, Fendi, Burberry, Hugo Boss, DKNY, Ravissant, Louis Vitton, among others. Also, India accounts for less than 1 per cent of the global luxury market while China accounts for 10 per cent of this market. From 1.2 million sq. ft. in 2008, (3.8 per cent of total retail space), the luxury retail space is estimated to grow to around 1.6 million sq. ft. by 2012 (3 per cent of total retail space). Moreover, the Indian luxury market is expected to grow 10 times, from $3 billion at present to $30 billion by 2015. The stats also show that around 40 per cent of the country’s wealthy households are in Delhi and Mumbai, while the remaining 60 per cent are spread across Pune, Hyderabad, Chennai, Bangalore, Ludhiana and Kolkata.
However, despite the potential of growth the fact is there is no Indian version of the Fifth Avenue (New York) or the Bond Street (London). One reason perhaps is because these places have not been a focus for development in India. Saloni Nangia, Senior VP, retail, Technopak Advisors, explained why a place like Connaught Place in Delhi or Linking Road in Mumbai cannot be a high street equivalent of Fifth Avenue or Bond Street. “You need to develop these places afresh for them to be high streets,” Nangia says. Experts say such high-end locations have the potential for some component to be redeveloped with excellent infrastructure and environment that this concept demands. Indeed, main streets in India unlike their European or American counterparts have a tenant mix, which is unappealing to luxury retailers, besides lacking basic infrastructure for shoppers such as proper pavements and parking spaces. Perhaps that is why as of now, luxury brands have to be content being housed in controlled environment in India to keep their exclusivity.
DLF Emporio
Technopak Advisors