A file photo of a Louis Vuitton store at DLF Emporio mall in Gurgaon.
To meet the surge in demand for real estate for luxury retail, several
developers are coming up with projects in Delhi, Kolkata, Mumbai and
Chennai in the next 18-24 months. Photo: Priyanka Parashar/Mint
New Delhi: The demand for suitable real estate
from international luxury labels looking to enter or expand their
operations in India continues although last year was not remarkable in
terms of sales.
“2012 was neither bad nor a great year for luxury brand retailers,” said Amitabh Mall,
partner and director at consulting firm Boston Consulting Group, but
the demand for appropriate space continues to be a primary challenge for
key luxury labels.
In 2011, the local luxury market saw a robust 20% growth
to touch $5.8 billion, according to Indian Luxury Review 2011, a report
prepared by lobby group Confederation of Indian Industry, or CII, and
consultancy AT Kearney.
India was scheduled to overtake China as the world’s
fastest growing market for luxury goods in 2012, driven by an explosion
in the number of rich people, said an October report by researcher
Euromonitor. It was also expected to grow at 22% a year in the next
five. The Indian luxury market will touch $7 billion in value by 2017,
while China will grow 15% over the same time, the report said.
“The problem with the sector is not that of a slowdown.
The critical issue is the lack of right retail spaces and environment.
If luxury sector growth in India has to escalate, it has to look beyond
same-store sales and set up new stores at the right places. That’s how
it grew in China,” said Darshan Mehta, president and chief executive officer, Reliance Brands Ltd. Same-store sales is the amount of sales generated from shops that have been open for at least one year.
Source:- www.livemint.com
0 comments:
Post a Comment