While, over 200 international luxury retail brands like Escada, Alfred Dun Hill, Hermes are wanting to foraying into India, they are finding it difficult to do so for want of suitable space and high rental cost.
The situation, however, may change soon and customers accustomed to good life may not have to travel to Dubai, Singapore or Europe to buy them, since the Gitanjali Group is pumping in Rs.100 crore to set up ‘luxury malls’ for ceating exclusive space for selling high end goods of global and local luxury brands. Luxury Connections, another of Gitanjali’s subsidiary will facilitate the entry of such brands in the country.
While, Gitanjali’s first ‘luxury mall,’ admeasuring about 45,000 sq. ft., will come up by end 2007, it is also looking at setting such malls in Delhi and Mumbai thereafter. These malls, apart from offering exclusive retail space to luxury brands, will also be equipped with the world class digital exhibition and conference facilities.
KSA Technopak, in its report “India Luxury Trends 2006″, has estimates that the luxury segment in India is worth $444 million, spanning across 1.6 million high-income households with an earning capacity of Rs. 45 lakh (approximately $100,000) annually. These high-net worth households, according to the report, are growing at 14 per cent annually and are spending nearly $9,000 per annum on luxury goods.
Source : IndiaRetailBiz
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