| Coming on the heels of the FICCI-Colbet Round Table on luxury brands on 29th March, where lack of proper infrastructure was a key point of discussion, comes an announcement that Gitanjali group is pumping over Rs. 100 crores ( US $ 23 million) in bringing out Specialty malls.
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 creating exclusive space for selling high end goods of global and local luxury brands. Luxury Connections, a subsidiary of Gitanjali 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.
Developer of fashion designer boutique malls, Bobby Gupta was amused at the news report when I met him. 'Rs.100 crore investment is miniscule in today's scenario unless they mean to exclude real estate.' He should know! After developing 50,000 sq ft. space on 1 MG Road, Delhi and adding 90,000 sq ft to the mall space in Delhi through Square One Mall which he says is too small an area for a mall ; he is about to add about 50,000 sq ft in Goa by leasing heritage space from Goa Medical College in Panjim and offer it to high end designers.
'The problem with luxury brands is that they are too particular about the location, especially their neighbours. But they are not willing to pay the current market rents which are, of course, very high as real estate has shot up.' Says Bobby who has internationally famous designers like Rohit Bal and Suneet Verma in the Square One mall in Saket but no luxury brands. 'I do know many luxury labels have tied up with DLF at Emporia , the new mall coming up at Emporio, Vasant Kunj though,'' he added. |
