Exploring the Luxury
Clusters of India
Executive Summary:
At present, India
enjoys only 1 % – 2 % of the global luxury market. Luxury retailers, both
national & international, are in a
spree to foray or / expand their
footprint in India.
The increasing
foreign travels of Indians have significantly increased the brand awareness of
India. Along with this, the increasing upper-middle class in India are the
country’s key drivers of luxury retail demand.
Louis Vuitton, Prada,
Gucci and Jimmy Choo are no longer unknown brands to India. In the last decade,
luxury retail has grown significantly and is growing at a rate of almost 20 %
1. From luxury cars and apparels to furnishings, all are paving their way into
the choices of Indian consumers.
The definition of
luxury is very relative and changes from country to country and among different
income groups. However, most households earning more than Rs. 10 lakh or /
above annually opt for luxury goods in India. With the significant growth of
this income group, luxury retail in India is expected to witness steady growth
in the coming years.
In India, preference
for luxury goods is growing across all the metro cities, although they are
mostly concentrated in Mumbai and Delhi. Luxury malls such as DLF Emporio in
Delhi, Palladium in Mumbai and UB City in Bangalore are already operational.
Luxury retailers
generally open their stores in luxury hotels with increased preference from
consumers as they are expanding their brand presence by starting their stores
in high-end malls and high streets and sometimes opening their flagship stores
in high-end residential neighbourhoods. However, finding a space as per their
standards and specifications is still a challenge in India.
In this paper, we
attempted to map a few such clusters across the seven metro cities in India
based on the various qualitative and quantitative factors catering to the
preference for luxury retail. The factors adopted to select the clusters were
penetration of luxury brands and preference for luxury. These factors were
analysed on the basis of the parameters below:
· Presence of noted luxury apparel and
accessories brands
· Presence of luxury automobile
showrooms
· Presence of fine dining restaurants
· Presence of luxury/premium residential
projects
· Neighbourhoods and catchments
When mapped, these
parameters reveal clusters of luxury retail that can be classified into three
categories. Based on their stage of development, the clusters are classified as
established, existing, growing and emerging.
For Media Contact
Arun Chitnis
Head – Corporate
Communications & Media Relations
Jones Lang LaSalle
India
Level 6, Amar Avinash
Corporate Plaza
Bund Garden Road,
Pune 411001.
Tel: (020) 30930441
Fax: (020) 40196101
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Website:www.joneslanglasalle.co.in
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