Luxury retailers smile as big spenders return
NEW DELHI: The buyer is back, with a vengeance. If you had a chance to visit an upperend retail mall recently, you could not have failed to notice it yourself. Whether it is apparel, shoes or basic goods, retailers and mall owners are reporting that the consumer diffidence of this time last year is a distant memory.
“We have noticed about 8% increase in the footfalls while spending has gone up by 5% in May,” said Arjun Sharma, director, Select Citywalk mall which houses luxury brands such as Bobby Brown, Tommy Hilfiger and Burberry.
The trend is similar at other malls. “Last year was very erratic, but we are now clearly witnessing an increase in footfalls, atleast by 20%, as well as its conversion into sales,” said Dina Madhukar, senior vice-president, DLF Promenade mall.
The Oberoi Gurgaon, which has stores of leading luxury brands Bottega Veneta, Jimmy Choo, Canali, Gucci, and Burberry, said the end of the season sale has had good response.
“We are witnessing 100% growth in revenues and sales this year against the same period last year. The growth could be the function of stable government and positive job market,” said David Mathews, GM, Oberoi Gurgaon.
Most luxury labels, where price tags start at about
20,000 and run into lakhs, are offering up to 50% discounts on marked price for designer bags, shoes haute couture.
Apart from discounts, there are other attractions as well. A hair makeover, free stay at a 5-star, discounts at spas and salons, gourmet dinners and lifestyle indulgences are among carrots being used to woo wealthy spender.
“Overall footfalls have gone up by 11% across stores. Sales growth has increased by 19% in 2013- 2014,” said Dilip Kapur, president, Hidesign.
The trend finds reflection in the CII Business Confidence Index (CII-BCI) for April-June, which rose to 53.7 points from 49.9 in the year-ago quarter. “The expectations that a stable government at the Centre would bring growth back to India has provided a boost to business sentiments,” said Chandrajit Banerjee, directorgeneral, CII.