Retail in Asia

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Luxury retail headed to hotels for right brand fit in India

High-end retail chains are increasingly looking at existing and new hotels to house their brands in India, according to experts tracking the sector. While some brands have traditionally been located in five-star hotels, retail chains were seen opting for malls in the last few years. However, absence of quality real estate is once again pushing retailers, especially the luxury and niche brands, into the cool comfort of hotels.

Sanjay Dutt, executive managing director (South Asia), Cushman & Wakefield, said at least 40,000 square feet of new retail supply is coming up in hotels. Aspirational brands, and luxury chains in apparel and accessories are among those targeting the five-star guests, Dutt pointed out. Getting quality space in mall or high street is a challenge for retail chains, he said explaining the phenomenon of some brands preferring hotels.

International brands such as Mont Blanc, Burberry, Canali, Prada and Gucci don’t want to dilute their brand value by locating in inferior malls and high-street areas, according to Ankur Bisen, vice president (retail), Technopak Advisors. "Such brands are extremely sensitive to their retail environment," Bisen said, adding that it would mean that these brands want to be sure that the environment stretching up to 3 kilometres around the store is good, the approach road leading up to the outlet is fine and of course the exteriors are pleasing. "From that point of view, a lot of high street and malls in India don’t qualify to house the super luxury brands."