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Experts had long predicted that as the market gets mature,
segmentation will be the way forward. DLF has decided
to take this route.
They have decided to segment the market in destination,
neighbourhood luxury and premium segment. Each segment
will cater to a different target group and will try
to get the most out of each one of them.
In true DLF style they are thinking big and have decided
that they want to expand in retail in a big way. It
plans to set up 22 million square feet of retail space
in the next three-four years.
With a proposed investment of Rs 27,000 crore, ($6.7
billion) it will set up malls in 11 cities. It has already
tied up with luxury brands like Louis Vuitton, Armani,
Gucci, Cartier, Dior and Fendi. The first mall will
be coming up in the first quarter of 2008.
Soon you will see all your favourite international
brands in the mall next door. DLF wants to make malls
the third destination in a person's life after office
and home.
"We see our malls as one stop place for the consumer,"
says Arvind Nair, MD, DLF Retail.
Developers are diversifying into retail and commercial
sites for higher margins but retail is already getting
crowded. Even Emaar MGF, Unitech and other players have
big plans ahead.
"Retail hasn't heated up and there is lot of space
to grow. Speciality malls are the way forward,"
said Nair.
Companies feel that the mall movement has just begun
in India and has a long way to go.
Retail is also the most lucrative vertical of the real
estate sector and DLF wants to cash into these high
margins. It remains to be seen if retail can give DLF
the much needed cash flow and profits that it expects
from the retail sector.
Resource: http://www.ndtvprofit.com
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