DLF plans luxury malls in Hyderabad & chennaiReal estate developer DLF Ltd that currently operates luxury mall "DLF Emporio" in the Capital is considering to start similar projects in other big cities, including Hyderabad and Chennai, that are seeing traction for high-end brands.
"We are looking to open more luxury malls in cities like Hyderabad and Chennai," DLF Malls Business Head Savitri Devi Singh said.
The company is currently in talks with the existing tenants at its DLF Emporio for the same. "There are some 10-12 anchor brands we are in discussions with to bring up similar models in other cities," she said.
According to Singh, who did not disclose the investment planned by the company in future projects, developing malls for housing luxury brands is an attractive proposition.
"DLF Emporio has already broken even and is doing very well in terms of revenue generation. It is a very viable business," Singh said, although she declined to divulge the amount, developer invested on the mall.
According to her, the mall is currently operating at a conversion rate of about 70 per cent. Some of the brands in DLF Emporio include Giorgio Armani, Salvatore Ferragamo, Louis Vuitton, Cartier, Fendi, Dior, Just Cavali, Aigner, Tods, Tiffany’s, Burberry and Hugo Boss, along with some leading Indian designers.
"Even Chandigarh has good potential for selling luxury goods, but we are not sure whether it would be right to open another mall there due to its proximity to Delhi," she added.
Cities like Bangalore and Mumbai already have luxury malls such as the UB City and Galleria, respectively and entering there is a much lesser attractive option.
If experts are to be believed, there is a dearth appropriate retail space in India that is keeping many luxury brands away from the country.
here is a serious need to have more retail spaces for luxury brands to expand or enter India, aT Kearney Principal Neelesh Hundekari.
According to a CII-A T Kearney report, India's luxury market, which is small compared to global standards, is likely to grow three times and touch $14.7 billion by 2015.
In 2009, the luxury industry, including products, services and assets, was estimated at $4.76 billion. Source: NDTV / PTI 10/10/10