Luxury brands now get more room for growth in malls
India is replicating the mixed-use model from South East Asian countries as the luxury market is still small
Jun 01, 2013
Source : The Economic Times

 

BANGALORE: Mall developers in India are setting aside up to 40% space for luxury brands, hoping to tap new money by offering labels such as Jimmy Choo, Canali and Gucci alongside mass-market products.

 

Developers including Xander Group-promoted Virtuous Retail, L&T Realty, Panchshil Realty, Ansal API and KKA Buildtech are setting up boutique luxury retail spaces or dedicating 20% to 40% of mall space in cities such as Surat, Chandigarh, Ludhiana, Amritsar and Pune to luxury brands.

 

This mixed-use model has proved a success with shoppers in South East Asian countries like Thailand, Malaysia and Hong Kong. Mall developers in India now hope to pull off the same trick. "India is replicating the mixed-use model from South East Asian countries as the luxury market is still small," said Bappaditya Basu, senior vice-president at retail advisory Jones Lang Lasalle India.

 

"Only Mumbai, Bangalore, Delhi and Pune understand luxury. There are no other cities that can absorb a pure luxury mall in absence of critical mass for retailers to survive." According to the real estate advisor, Dubai, Thailand, Malaysia , Hong Kong and South Korea have malls with part of its overall development dedicated to luxury. "Big mall development cannot be sustained on pure luxury ," Basu added. In some cities, the mall developers' gamble has already brought smiles.

 

"I would travel light and stock up on formal wear as it was not available in India. But now I can get access to varied collection of Brooks Brothers from Chandigarh stores," said 27-year-old entrepreneur Arjun Mittal, who until now was picking up luxury brands from the US and Europe during his business trips. Mittal belongs to a growing class of moneyed shoppers that is driving a change in India's retail mix in tier 2 cities and towns, away from the pure luxury malls of Delhi, Mumbai and Bangalore.

 

"Mixeduse malls ensure footfalls across segments, allowing aspirational customers to experience luxury and convert them into future customers of luxury and premium offering ," said Sangeeta Vernekar, director-retail excellence at Phoenix Group. The Palladium mall in Mumbai , the first mixed-use mall development in the country, houses luxury brands like Gucci, Jimmy Choo and Canali among others.

 

Latest Realty News

Housing Development & Infrastructure Ltd served termination notice from MIAL
Jun 01, 2013
Housing Development & Infrastructure Ltd (HDIL) has received a termination notice from Mumbai International Airport Limited (MIAL) for its slum rehabilitation project, it said on Wednesday.
North Chennai home rates grow fastest
Jun 01, 2013
Northern parts of Chennai have long been considered the backwater region of the city. But the residential price index (residex) put out by the National Housing Bank (NHB) shows that Ayanavaram, Kolathur and Purasawalkam have seen the maximum appreciation in residential prices in the last six years across the country.
GMR infra back in the black with Rs 519 crore profit
Jun 01, 2013
Infrastructure major GMR Group Friday reported a consolidated net profit of `519.17 crore for the quarter ended March, 2013 as against a net loss of `366 crore in the corresponding quarter.
DLF targets new sales booking of more than 50% in FY'14
Jun 01, 2013
Realty major DLF LtdBSE -5.41 % today said it is targeting more than 50 per cent jump in new sales booking to Rs 6,000 crore in the 2013-14 fiscal.
Mumbai leaseholders opt for govt’s one-time premium offer
Jun 01, 2013
Plot holders are latching on to the state’s move to offer its leased lands on occupancy basis. While 22 plot holders in the suburbs have opted for the option, only six have chosen the other preference that involves renewal of lease by paying revised lease rents.
Mumbai Metro pushes property values in Ghatkopar and Andheri
Jun 01, 2013
The upcoming Mumbai Metro, which has been in the news for a long time, will finally be running across the city in another six months.
Singapore team expresses interest in infrastructure projects
Jun 01, 2013
In signs that the state's government initiatives to attract industry may be yielding results, a government-cum-business delegation from Singapore has evinced interest in investing in infrastructure projects, the proposed IT City at Lucknow,
AT Group chief Sethi beaten at his own game
Jun 01, 2013
AT Group CMDPradip Sethi, who allegedly cheated thousands of investors, was taken for a ride by land sharks, who made him buy land at inflated prices. Sethi, who had planned to return investors' heavy interests by selling it at higher rates, failed to dispose it after realizing the real price of the property, police said.
Current realty prices in metros may be unsustainable: Report
May 31, 2013
Investment demand for real estate in the metros, rather than the demand from those who want to stay in the house they are buying, seems to have outpaced the rise in home prices in these cities compared to in the smaller ones. And this faster pace of rise in real estate prices in the metros may eventually turn out to be its own undoing, a report by Japanese financial services firm Nomura pointed out.
Realty prices in Puducherry’s French quarter take a hit
May 31, 2013
It's an inevitable domino effect. The local government's civic apathy is robbing Puducherry of its real estate sheen. According to sources, the attraction of the city's famed White Town or French quarter - whose limited residential properties have always attracted both well-heeled locals and expats - is wearing off thanks to mounting garbage, litter-lined streets and hand-cart hawkers.

Latest Realty News Of State

Realty Talk's