India’s strong consumption story relies on its demographic structure, which, at this point in time, is highly favourable compared to most other emerging nations. As per the UN population statistics, this favourable demographic dividend will last for another 25–30 years. Before that, most other emerging nations would have already begun to witness a slowdown in the growth of young (working-age) population. The ensuing benefits with regard to the rising income and household spending would provide a significant boost to the consumption-driven growth story of India. A glimpse of the changing pattern of India’s consumption is already visible in the breakdown of private final consumption spending data provided by the government. There is a marked increase in spending on lifestyle products and services such as hotels, mobiles, transportation and other miscellaneous goods. As against that, spending on essentials has only remained stable. International retailers are well aware of these benefits that the Indian economy offers. Barring few legislative challenges that could be tackled through the policy reforms and opening up of the retail sector, retailers have often expressed their intention to enter and invest in India’s attractive retail sector. This is very well reflected in AT Kearney’s Global Retail Development Index 2012, where India ranks as the fifth most attractive retail market for international retailers. The retail sector is a significant contributor to India’s economic activity. Though a direct measurement of the retail sector is difficult to derive through government statistics, the trade, hotels and restaurant sectors come close to giving us an estimate of its contribution. That component, in which retail (both organised and unorganised) is the dominant activity, accounts for around 18% of India’s GDP. Within the services sector of India, this component is the largest contributor to the economy. Many institutions, however, may not agree with this possibly understated measurement of the retail sector, as it may not accurately account for the unorganised sector. For instance, as per the estimates of the Associated Chamber of Commerce and Industry (ASSOCHAM) presented in one of its retail reports of 2012, the contribution of both organised and unorganised retail stood at 22% of GDP. This would mean that Indian retail sector size should measure closer to INR 19.2 trillion in 2012. Leading research institutions such as AT Kearney and ASSOCHAM estimate this sector to grow at around 15% y-o-y over the next three–five years as against a 12%–13% nominal growth of India’s GDP estimated by the International Monetary Fund (IMF). Going by that logic, the retail sector should reach a size of INR 34 trillion by 2016. This is a significant growth. The sector is also an important contributor towards the socioeconomic well-being of the economy as it employs close to 9.4% of India’s labour force, as per the association.

1. Retail Intelligence I September 2013
www.joneslanglasalle.co.in
India’s Retail Luxury QuotientExploring the Luxury Clusters of India

2. India’s Strong
Consumption Story
Looking through the changing consumption
basket of Indian consumers

3. 3
INDIA‘S RETAIL LUXURY QUOTIENT
India’s strong consumption story relies on its demographic structure, which, at this
point in time, is highly favourable compared to most other emerging nations. As per
the UN population statistics, this favourable demographic dividend will last for another
25–30 years. Before that, most other emerging nations would have already begun to
witness a slowdown in the growth of young (working-age) population.
The ensuing benefits with regard to the rising income and household spending would
provide a significant boost to the consumption-driven growth story of India. A glimpse
of the changing pattern of India’s consumption is already visible in the breakdown
of private final consumption spending data provided by the government. There is
a marked increase in spending on lifestyle products and services such as hotels,
mobiles, transportation and other miscellaneous goods. As against that, spending on
essentials has only remained stable.
International retailers are well aware of these benefits that the Indian economy offers.
Barring few legislative challenges that could be tackled through the policy reforms and
opening up of the retail sector, retailers have often expressed their intention to enter
and invest in India’s attractive retail sector. This is very well reflected in AT Kearney’s
Global Retail Development Index 2012, where India ranks as the fifth most attractive
retail market for international retailers.
Growth of Young Population
Higher growth of young population to last longer in India
(Growth in working population aged 15-59 %)
20
15
10
5
0
-5
0
-1
5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5 0 5
-5 -6 -6 -7 -7 -8 -8 -9 -9 -0 -0 -1 -1 -2 -2 -3 -3 -4 -4
50 955 960 965 970 975 980 985 990 995 000 005 010 015 020 025 030 035 040
19 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2
Brazil
China
India
Russia
All figures in (%)
India’s Spending on Essentials (Proportion of
Private Consumption Spending)
Essential spending as a proportion of Private Consumption Spending
45
10
40
9
8
35
7
30
6
25
5
20
4
15
3
2
1
2000
Healthcare
2002
Education
2004
2006
Clothes & footwear
2008
10
2010
Food (rhs)
2012
All figures in(%)
India’s Spending on Lifestyle (Proportion of
Private Consumption Spending)
Lifestyle spending as a proportion of Private Consumption Spending
Source: UN Population Statistics, India NSSO data, Jones Lang LaSalle Research

4. 4
INDIA‘S RETAIL LUXURY QUOTIENT
Introduction
to India’s
Retail Sector
India’s Services Sector Breakdown (% of GDP)
The retail sector is a significant contributor to India’s economic activity. Though a
direct measurement of the retail sector is difficult to derive through government
statistics, the trade, hotels and restaurant sectors come close to giving us an
estimate of its contribution. That component, in which retail (both organised and
unorganised) is the dominant activity, accounts for around 18% of India’s GDP.
Within the services sector of India, this component is the largest contributor
to the economy. Many institutions, however, may not agree with this possibly
understated measurement of the retail sector, as it may not accurately account
for the unorganised sector. For instance, as per the estimates of the Associated
Chamber of Commerce and Industry (ASSOCHAM) presented in one of its retail
reports of 2012, the contribution of both organised and unorganised retail stood
at 22% of GDP. This would mean that Indian retail sector size should measure
closer to INR 19.2 trillion in 2012. Leading research institutions such as AT
Kearney and ASSOCHAM estimate this sector to grow at around 15% y-o-y over
the next three–five years as against a 12%–13% nominal growth of India’s GDP
estimated by the International Monetary Fund (IMF). Going by that logic, the retail
sector should reach a size of INR 34 trillion by 2016. This is a significant growth.
The sector is also an important contributor towards the socioeconomic well-being
of the economy as it employs close to 9.4% of India’s labour force, as per the
association.
18
20
16
18
14
% of India GDP
16
14
12
8.2
7.1
10
8
6
While both formats compete in almost all categories, the unorganised sector is
largely concentrated around the food and grocery portion, while the organised
sector has harped on apparels, accessories and lifestyle goods more than on
groceries.
All figures in (%)
Transport, Storage
& Communication
Construction
0
Community, Social
& Personal Services
Trade, hotels &
restaurant
2
In its current form, the retail sector in India is mostly unorganised in its structure,
with the organised retail contributing a small 7% to the total sector as of FY2012.
However, this industry is witnessing a fast transition and it is estimated that the
organised sector will record a growth rate of close to 24% CAGR to increase its
share to 10.2% of the total sector by 2016–2017, as per ASSOCHAM. As of 2016,
the organised retail sector would therefore touch the size of INR 3.5 trillion.
Finance, Insurance,
Real Estate &
Business Services
4
Industry Estimates Overall Retail Sector to Touch
INR 34 Trillion by 2016
24
Estimated Growth of Organised Retail
40
35
INR trillion
3
2
1.2
23
30
25
34.0
29.5
23
25.7
16.9
22.3
20
22
19.4
15
22
10
1
2011
0
2012F
2013F
2014F
2015F
2016F
5
0
2011
2012F
2013
2014F
Retail Sector
2015F
Share in GDP
Source: CSO, ASSOCHAM, AT Kearney, Jones Lang LaSalle Research
2016F
21
Retail / GDP share (%)
Retail sector (in INR trillions)
3.5
4
24

5. INDIA‘S RETAIL LUXURY QUOTIENT
5
Break-up of Organised and Unorganised Retail
7%
6
8
1
5
24
2
1
4
Food and Grocery
3 1
Apparel
Consumer Durables, Mobile & IT
4
93%
10
Home Décor and Furnishing
6
Beauty, Personal and Healthcare
4
Pharmacy
12
20
70
Jewellery, Watches and Eye Care
Footwear
35
Books and Music
All figures in (%)
Organised retail (2011-12)
Unorganised retail (2011-12)
Source: India NSSO data,
Jones Lang LaSalle Research
Value of Grade A Organised Retail Stock in India
The presence of unorganised retail is spread across all parts of the
country, although organised retail has started to flourish since the early
part of last decade. Within that, most of the investible grade stock of
Grade A category of retail spaces revolves around the larger metros.
Delhi NCR and Mumbai NCR, thus, have been leading in terms of the
cities having the highest concentration of Grade A retail malls, followed
by other top Tier I and Tier II cities.
Source: Jones Lang LaSalle Research

6. 6
INDIA‘S RETAIL LUXURY QUOTIENT
Indian Retail Sector –
SWOT Analysis
Strengths
Weaknesses
• Significant contributor to the Indian economy and thus
important for policymakers
• Critical sector in terms of its socioeconomic benefits
• Creates livelihood for a large segment of population, both
officially and unofficially
• India’s rising urbanisation—urban inhabitants value convenience
shopping
• Disposable income in India is on the rise; helps enhance
consumerism (spend now, save later)
• Witnessed high growth rates in the past, while growth outlook is
also bright
• Agriculture sector in India is huge, offering abundance of raw
materials
• Information technology, which enables cost reduction for retail, is
strong in India
• Highly unorganised sector and thus inefficient; causes drain
on national resources (pilferage of food grains, etc)
• Poor infrastructure limits growth and profitability
• Regulatory hurdles are high, especially in obtaining mandatory
multiple retail licenses
• Management of supply chain is skewed in favour of few large
wholesalers/retailers
• Within the organised sector, talented professionals are
difficult to find
• Real estate cost, particularly in larger cities, acts as a deterrent
• As yet, the retail sector does not have an industry status,
which limits its ability to raise financing
• Multiplicity of taxes & taxing bodies coupled with a MRP
(Maximum Retail Price) regime reduces margins
Opportunities
• Increasing awareness of consumers about quality products
and services
• Indian retail sector is huge and is therefore seen as an
attractive market by multinational retailers
• High level of consumerism encourages product innovation
and improved services
• While leading urban centres in India is rightly served, smaller
towns and rural areas are almost untapped
• With a median age of around 26 years, India’s demographic
dividend story will remain intact for many more years
• Government’s effort towards increasing banking penetration
and financial inclusion will further encourage spending
Threats
• Vast unorganised market puts severe downward pressure
on industry margins
• Ongoing economic slowdown has affected the spending
power of consumers to a great extent
• Any move towards modernising the industry is met with
opposition from wholesale-retail associations
• Political deadlock between the proreformist parties and the
left-wing conservative parties could delay necessary reforms
in this sector
• Reversal of announced policy measures and retrospective
clauses in litigation and taxation disputes affect investor
sentiments

7. INDIA‘S RETAIL LUXURY QUOTIENT
India Retail:
Demand
Supply
Dynamics
The Indian retail sector has witnessed unprecedented growth over the last decade, driven by robust economic growth, rapid urbanisation and changing lifestyles and aspirations
of the Indian consumer. From less than 1 million sq ft of mall space in 2001, the Indian organised retail sector has increased manifold. However, the ups and downs of the Indian
economy had always taken its toll with changes in absorption and vacancy over the years.
00
('0
sq
(Vacancy Rate)
30
)
m
Forecast
0
50
1
25
50
20
00
15
75
0
10
0
50
5
12
10
0
25
0
2009
2010
2011
Completions
2012
2013
Net Absorption
2014
2015
0
After displaying stellar growth, the retail scenario in
India took a beating during the years after the global
financial crisis (GFC). It bounced back in 2011 with
the completion of malls that were in the pipeline
and dropped again with a decrease in supply and net
absorption in 2012. In the coming years, we expect to
see a moderate inflow of fresh supply of mall space and
a lukewarm demand for malls at poor locations and of
inferior quality. This is expected to marginally increase
the vacancy in India’s organised retail stock.
Vacancy Rate
Source: Jones Lang LaSalle Research, 2Q13
All the seven cities in India, except Mumbai, are likely to
experience increase in the vacancy levels in the midterm
of the coming three years. As demand is likely to be
concentrated in malls in appropriate locations, based
on sound research on cluster and consumer pattern.
We can see the higher change in Hyderabad with more
than 15% increase because of poor performance in the
absorption front. However, Chennai and Delhi—with
a marginal increase—and Mumbai—with a decline in
vacancy rate—could remain the better performers. We
also expect a significant increase in the Delhi NCR stock
in the coming three years and Hyderabad stock getting
nearly doubled in the said time frame.
The forecast value are taken of end-2015 and the present value is of 2Q13
Source: Jones Lang LaSalle Research, 2Q13
The organised retail stock
of India stands at
67.1 million sq ft, in the
major seven cities
1H13 witnessed new
supply, amounting
to 90% of the total
supply of the entire
2012
Net absorption was
down by 0.3 million
sq ft in 1H13 as
compared to 1H12
Present vacancy in
Pan-India Grade A
stock stood at 18.6%
at end-2Q13
7

8. 8
INDIA‘S RETAIL LUXURY QUOTIENT
Future of Indian Retail
Present Polarisation in Demand
Key to Success
• Understanding the locational background and its suitability and
potential for upcoming retail brands
• Understanding the consumer needs and wants
• Venturing into locations that are having favourable residential
catchments or are likely to have better retail potential in the long run
• Selecting the correct strategy for operations and growth
• Churning in newer and innovative ideas for potential retail
development
• Brand awareness campaigns that could help build performance
guideline for the retailers
The organised retail
stock of India is
expected to be 87.4
million sq ft as at
end-2015
Source: Jones Lang LaSalle
Research, 2Q13
The existing high vacancy in malls in Mumbai and in Delhi NCR
could also be attributed to the polarisation in the demand for malls
in these cities. The malls that are in good locations and are backed
up by the sustainable consumer community suitable for them are
helping them perform well with large footfalls and good conversion.
Meanwhile, overambitious projects launched in with poor designs
at times coupled with poor locations contribute to higher vacancies
within the vicinity and the rest of the city. Even with the expected
correction in supply in the long run, the vacancy is expected not to
change much as some of these projects are under construction and
would be operational in the midterm. Another important point to
consider is the lesser availability of lands in the prime city areas for
the development of organised retail
Vacancy is likely to
remain unaltered
with marginal ups
and downs around
its present level
NCR Delhi
Mumbai
Bangalore
Chennai
Kolkata
Hyderabad
Pune
Jones Lang LaSalle Research and Real Estate Intelligence Service (REIS), 2Q13 (for detailed parameters, refer to Annexure 1)
Attractiveness of High Streets
Brand Consciousness
Cosmopolitan Index
Experimenttaion Index
Population in the age group 18-45 years
Retail Consciousness Index
Household with 2 or more employed
Household Expenditure Pattern
Household Income
Propensity to Consume
% of population in Sec-A & Sec-B
Migration in the last 4 years
Demographics
Upper-mid and high residential units launched in last 3 years
Grade A High Street stocks in prominent locations
Grade A quality stocks coming up in next 3 years
Grade A quality stocks
Prime Retail Rents
Real Estate Drivers
Market Potential Index
Cities
Retail Attractiveness Index
Retail Attractiveness Index

9. Delhi NCR
Delhi NCR tops most of the parameters on which we base our retail attractiveness
quotient. The city tops all real estate drivers and also the sociopsychological
parameters. As a result, Delhi NCR stood first in rank and we can deduce that it has
the most enriching retail legacy among the Indian cities.
Mumbai
With the highest in-migration and a large number of SEC A and SEC B population,
Mumbai has the highest retail demand potential. However, a lack of availability of
land parcels leading to high rents in prime areas act as a dampener that causes
Mumbai to lag behind Delhi in terms of existing retail stock, and also against other
cities when compared to the upcoming supply. The high propensity to consume
creates an inherent shopping culture, which helps sustain the rise in demand for
retailers.
Bangalore
Bangalore ranks high on the chart with its good retail consciousness and the existing
and upcoming supply. In addition, affordable rents in the city—compared to other
Tier I and some Tier II cities—have helped the retail to flourish here. However,
the city has lesser household expenditure even when compared to Kolkata and
Chennai.
Chennai
Chennai, with its affordable rents and good high street stock in contrast to the
organised retail stock, has received the fourth rank. In addition, the large number of
INDIA‘S RETAIL LUXURY QUOTIENT
9
high and upper-mid residential units launched in the last three years would be able to
create the retail demand. However, many from Chennai migrate to other IT destinations
such as Bangalore, Hyderabad and Pune, as indicated by their low migration rates.
Kolkata
The best that Kolkata can offer to retailers is the attractive household expenditure and
an illustrious high-street variety retailing. It has a fairly high concentration of SEC A
and SEC B households whose propensity to consume is usually higher than others.
However, rents in prime areas are not affordable and the retail stock is also low, both of
which make penetration of the retailers difficult.
Hyderabad
Hyderabad offers attractiveness in terms of affordable rents, which is higher only to
Pune among the Tier II cities. In addition, a huge amount of upcoming supply in the
next three years would naturally keep the momentum in consumption alive in the
future. However, lesser household income and household expenditure has ranked it
low in our table.
Pune
Pune provides the most affordable rents in prime areas among the Tier I and Tier II
cities. The high migration rates will be well supported or even enhanced in the future,
given that the city has a large office supply per capita in the pipeline. However, low
household income and expenditure compared to most other cities has ranked it the
lowest.
Annexure 1 Indicator and Metrics Used in Creating the Indices
Factor
Indicator
Metric
Market Potential Index (MPI)
Real Estate Drivers
Demographics
Average rents of 50% of the malls in the prime areas of the city
(excluding the top 25% and bottom 25%), including the weighted
average of vanilla and anchor rents
Completed quality stocks – Presence of high-quality completed stock shows the extent of
maturity of the market
Total existing organised retail space
Upcoming supply is a leading indicator of the extent of maturity expected in the market in the
coming years
Total organised retail space that is expected to come up by end-2015
High street stocks in prominent locations drive the cities’ market potential
Total high street retail in prominent retail destinations of the city in
terms of shopping clusters and shopping centres
High and upper-mid residential units produce the base for retail catchments in the city as the
dwellers are more likely to visit the malls and the costlier high street locations
Propensity to Consume
Prime retail rents – Penetration of all the brands depends on the precinct’s rental affordability
along with its high-income availability to continue to the profitability equation. Mature markets
may tend to fetch higher rents. However, with high supply, the retail rents does not affect much
The total number of residential units in the upper-mid and high
categories launched within the last three years
Migration – Migrant population not only adds to the consumer base but is also likely to have
increased its acceptance to organised retail spaces such as malls versus conventional stores
People1 who migrated to the city in the last four years
Consumer profile is another deciding factor behind a city’s drive to act attractive towards the
retailers as most of the SEC A and SEC B population are conscious towards the presence of
brands
Number of SEC A and SEC B population of the city
Total number of households with income of more than INR 300,000
Households above a certain income threshold are more likely to shop with higher frequency and for SEC A, income more than INR 500,000 for SEC B and income
foot larger bills than households with lesser income
more than INR 1,000,000 for SEC C
Expenditure of TIG is the decisive factor for propensity to consume
Expenditure of households with income more than INR 500,000 per
annum
Families that have more than one employed member have higher earnings potential.
Moreover, employed members of the household have greater economic freedom in making
independent consumption choices
Number of households with more than two employed members
Retail Consciousness Index (RMI)
The young population is more brand conscious and focused towards choosing products based
on newer trends
Population in the age group of 18–45 years
Experimentation with practicing newer fashion trends and consciousness towards modern
fashion phenomena creates the base for international brands with better potential for
experimentation
Qualitative understanding of the fashion consciousness of the cities
and how they are reacting to the newer trends
A cosmopolitan city is the breeding ground for fashion potential
Qualitative and subjective understanding of cosmopolitan nature of
the cities
Brand consciousness of a city helps the retailers to enter the market and achieve profitability
with potential sales
Qualitative understanding about the performance of the international
luxury and premium brands and the cities’ consciousness about the
these brands that are newer entrants in Indian markets
Attractiveness of high streets of the city helps in building the retail consciousness even if the city
does not have potential Grade A quality organised retail stock
Subjective and qualitative understanding of the performance of the
high streets in terms of visibility and footfalls
Limitations
• Preference for shopping malls will be higher in cities where shopping centres have been historically prevalent (e.g., Delhi) versus cities where high street shopping has been
prevalent (Mumbai, Chennai and Hyderabad).
• The consciousness data has been used by qualitative assumptions. However, individual feelings and preference could vary in specific cases.
• The future data and their impact are predicted. However, any change in the market scenario and unforeseen circumstances could change the equation and the process then
calls for a reiteration.
1
Number of migrants is based on total population because of the unavailability of data of migrants in SEC A population. It is assumed that the SEC A migration rate should be same for these top cities.
Source: 1. Analytics and real estate data are sourced from REIS (Jones Lang LaSalle) 2. Demographic, sociocultural and income data is sourced from Indicus Analytics 2011–2012.

10. 10 INDIA‘S RETAIL LUXURY QUOTIENT
Luxury Retail in India
Exploring New
Destinations

11. a
INDIA‘S RETAIL LUXURY QUOTIENT
11
Key Luxury Retail Clusters in India
At present, India enjoys only 1%–2% of the global luxury market. Luxury retailers,
both national and international, are in a spree to foray or expand their footprint in
India. The increasing foreign travels of Indians have significantly increased the brand
awareness of India. Along with this, the increasing upper-middle class in India are the
country’s key drivers of luxury retail demand. Louis Vuitton, Prada, Gucci and Jimmy
Choo are no more unknown brands to India. In the last decade, luxury retail has grown
significantly and is growing at a rate of almost 20% 1. From luxury cars and apparels
to furnishings, all are paving their way into the choices of Indian consumers. The
definition of luxury is very relative and changes from country to country and among
different income groups. However, most households earning more than INR 1 million
or above annually opt for luxury goods in India. With the significant growth of this
income group, luxury retail in India is expected to witness steady growth in the coming
years.
In India, preference for luxury goods is growing across all the metro cities, although
they are mostly concentrated in Mumbai and Delhi. Luxury malls such as DLF Emporio
in Delhi, Palladium in Mumbai and UB City in Bangalore are already operational.
However, luxury retailers generally open their stores in luxury hotels with increased
preference from consumers as they are expanding their brand presence by starting
their stores in high-end malls and high streets and sometimes opening their flagship
stores in high-end residential neighbourhoods. However, finding a space as per their
standards and specifications is still a challenge in India.
In this paper, we attempted to map a few such clusters across the seven metro cities
in India based on the various qualitative and quantitative factors catering to the
preference for luxury retail. The factors adopted to select the clusters were penetration
of luxury brands and preference for luxury. These factors were analysed on the basis
of the parameters below:
• Presence of noted luxury apparel and accessories brands
• Presence of luxury automobile showrooms
• Presence of fine dining restaurants
• Presence of luxury/premium residential projects
• Neighbourhoods and catchments
When mapped, these parameters reveal clusters of luxury retail that can be classified
into three categories. Based on their stage of development, the clusters are classified
as established, existing, growing and emerging.
The clusters and their characteristics will be discussed on the following pages.
Luxury brands focus
on strong growing
brand consciousness
and the fast growth
of India’s uppermiddle class
DLF Emporio in
Delhi, Palladium
in Mumbai and UB
City in Bangalore
are luxury malls
operational in India.
India’s retail real
estate has to upgrade
its specifications
to meet the global
standards to cater to
the luxury retailers’
requirements.
1. The Indian Luxury Summit 2012 – Analysing the Indian Luxury Market

12. 12 INDIA‘S RETAIL LUXURY QUOTIENT
Delhi NCR
Accounts for highest SEC A population having income of
more than INR 300,000 pa
Audi, BMW,
Mercedes,
Jaguar, Land
Rover, Rolls
Royce
Zara, LV,
Hi-Design,
TAG Heuer,
Jimmy Choo,
Paul Smith,
Emporio
Armani, Clarks
Cost for two
is greater than
INR 2,500
(excluding
beverages)
The featured brands do not make a comprehensive list of all the brands present in the city.
3
5
12
West Delhi
Rajouri Garden, Shivaji Garden, Rohini, Pitampura, Kirti
Nagar
Central Delhi
2
3
27
Connaught Place (Inner and Outer Circle)
Prime South
Vasant Kunj, Saket, Greater Kailash, Khan Market, South
Extension, Lajpat nagar
1
14
98
1
1
8
NOIDA
NOIDA (Sectors 15-18), City Center
Gurgaon
MG Road, Golf Course Road, Mehearouli Road, Delhi
Gurgaon Expressway
5
6
36
2
6
Extended Gurgaon
32
NH8, Dwarka Expressway
ESTABLISHED
GROWING
EMERGING
LOCATION
LOCATION ADVANTAGE
REAL ESTATE PARAMETERS
FUTURE OUTLOOK
Central Delhi
(Established)
Being the oldest and one of the largest commercial,
financial and business centres in Delhi, the location
enjoys heavy footfalls which spur the retail sector.
The presence of foreign bank branches, clothes
and accessories, F&B and luxury car outlets is
evidence of the retail potential of this developed
cluster.
The unavailability of retail space is a concern.
No malls are present here, with high street
However, the demand looks bright in the cluster
shopping the dominant retail format. Despite
with huge footfalls each day.
absence of high-end residential, this area is
preferred by shoppers spread across the breadth
of Delhi. As a result, the demand from retailers has
pushed the retail rents to INR 400-500 per sq ft per
month.
West Delhi
(Established)
A well-established area characterised by upper-mid No luxury residential units have come up in the
past three years, but demand for organized retail
and high-segment business families and private
builder floors which has added to the attractiveness has been driven by the existing SEC A population.
This is evidenced by the presence of more than ten
of this location.
operational malls and another five projects under
development. The retail rents are in the range of
INR 150-200 per sq ft per month.
The future outlook is impacted by the presence of
a dominant high street shopping culture, though
recent developments have shown that the correct
mall design and management can reap the benefits
of excellent tenant profile and healthy footfalls.

13. INDIA‘S RETAIL LUXURY QUOTIENT
Being home to the urban elite , this location has
seen demand for luxury retail with a push towards
international brands and luxury cars.
The future of the cluster’s retail looks good with its
More than 250 luxury residential units had been
launched in the last three years, which reciprocated positioning as the city’s luxury retail focal point.
the growth in spite of land shortage. Large numbers
of foreign bank branches are also present to
cater for the high net worth individuals (HNWI)
population. Five midsized to large-sized malls are
present, including the luxury mall DLF Emporio.
However, there is a shortage of supply in the
pipeline. Retail rents are within the range of INR
250–INR 300 per sq ft per month.
NOIDA city and its city centre are acting as the
major hub of the new age industries, which
includes IT/ITES sector and are also catering to the
demand of modern urban elites.
At present, NOIDA has five mid to large size
malls with two upcoming malls in pipeline. The
demand is supported by more than 4,000 high-end
residential units launched in the last three years.
The rental range is between INR 150-175 per sq ft
per month.
The cluster is growing fast and could observe
retail sector development coming up of age as it is
supported by the high-end population.
Gurgaon is developing rapidly. Commercial sector
development, complemented by the residential
sector’s growth and proximity to the airport, is
helping the cluster grow.
More than 3,000 high-end residential units were
launched in the last three years. The retail demand
has been supported by six midsized to large-sized
malls. The presence of foreign banks and luxury
car showrooms are also being driven by the real
estate growth. Consumer demand has pushed the
cluster’s retail rent to INR 175–INR 200 per sq ft
per month.
The cluster’s future is bright with the development
of new age commercials. It is also supported by
residential growth, which drives a sustained retail
demand in the long run.
It is one of the upcoming locations that is
connected very well with Dwarka Expressway and
NH8
This cluster witnessed the launching of more than
5,000 high-end residential units in the last three
years, which created a base for huge consumer
demand.
The residential sector could boost the cluster’s
retail demand that will likely open up new
possibilities and opportunities.
Prime South
(Established)
NOIDA
(Growing)
Gurgaon
(Growing)
Extended Gurgaon
(Emerging)
13

14. 14 INDIA‘S RETAIL LUXURY QUOTIENT
Mumbai MMR
Amidst many retail clusters, retailers can still find
opportunities by location & densification
Zara, LV, HiDesign, Tag
Heuer, Jimmy
Choo, Paul
Smith, Emporio Armani,
Clarks
Audi, BMW,
Mercedes,
Jaguar, Land
Rover, Rolls
Royce
Cost for two
is greater than
INR 2,500
(excluding
beverages)
The featured brands do not make a comprehensive list of all the brands present in the city.
0
1
1
0
2
3
Thane
Ram Marooti Road, Ghodbunder Road
Malad Kandivali & Borivali
Andheri WEST
Lokhandwala Complex, Link Road
3
0
5
3
1
40
0
2
36
Andheri Kurla Road- Powai
Hiranandani Powai, International Airport Terminal & Vicinity
Bandra WEST- Juhu
Linking Road, Juhu Tara Road
BKC- Kurla WEST
LBS Marg
3
1
5
Vashi-Nerul
Vashi Node, Seawoods Node
6
7
18
Worli- Lower Parel
Annie Besant Road, High Street Phoenix
2
6
32
Churchgate-Colaba
Colaba Causeway, Fort
ESTABLISHED
GROWING
EMERGING
LOCATION
LOCATION ADVANTAGE
REAL ESTATE PARAMETERS
FUTURE OUTLOOK
Churchgate-Colaba
(Established)
This is the oldest and among the largest
commercial, financial and business centres in
Mumbai. The cluster has a high level of commercial
activity and tourism because of its huge footfalls.
This cluster has only one accessible mall at
Nariman Point, although it is known to house
popular high-street markets such as Colaba
Causeway and Fort.
Unavailability of retail space is one of its prime
concerns. However, the cluster’s demand is high
with huge footfalls every day.
Bandra West - Juhu
(Established)
This cluster is illustrious in terms of consumption
parameters—particularly fine-dining—and receives
high footfalls from its neighbouring high-end
residential households and avid shoppers.
There is no mall within this vicinity, although it
houses popular high streets and small shopping
arcades. Rentals in this cluster are very high and
space availability for constructing large malls is
scarce
Demand is very high, but space availability, high
rentals and competition from high streets could be
of concern for mall developers.
Worli-Lower Parel
(Established)
This cluster is home to the elite residential
households of Mumbai. It also houses large-scale
commercial buildings that help to attract footfalls
from the high-consuming class. It scores very high
on all consumption parameters.
There are four good malls and a prominent high
street in the vicinity. It houses Mumbai’s only luxury
retail mall—Palladium. Rentals are high, owing to
its strategic location.
There is scope for further retail development,
although the availability of space and high rentals
would remain a challenge.

15. INDIA‘S RETAIL LUXURY QUOTIENT
Andheri Kurla
Road- Powai
(Growing)
Andheri West
(Growing)
15
With the upcoming completion of Mumbai’s
first metro, there is an ample commercial and
residential activity happening around this cluster as
it is easily one of Mumbai’s most important east–
west traffic corridors.
Retail high streets in Powai have already picked
This cluster has witnessed Mumbai’s highest
up well and there is a scope for this cluster to
completions of high-end residential units during
2010–2012. Also, in terms of upcoming completions accommodate a large-sized mall.
(2013–2015), it ranks the third highest. The cluster
has no mall and consumers rely on high streets.
Consumers have access to R-city, Phoenix and few
other malls, but with some difficulty.
This cluster, which has been part of the western
suburbs, houses the largest number of Mumbai’s
SEC A households. Additionally, it houses several
commercial establishments, thereby creating ample
footfalls.
The future of retail in the cluster looks good with its
It houses approximately four to five malls nearby
and it also boasts of a prominent high street around positioning as the city’s luxury retail focal point.
Lokhandwala Complex. While a couple of malls
receive very good footfalls, others are struggling
to attract consumers because of poor mall
management. Rentals are high..
While it is a growing retail cluster, the presence of
prominent malls nearby will have to be examined.
Identifying the right location will be very important.
Cheaper rentals would likely attract developers
Vashi-Nerul
(Emerging)
Having several large-format malls and other
Among all the clusters in Mumbai, this has
sources of entertainment, this cluster is a shoppers’ witnessed the second highest completions of highparadise in Navi Mumbai.
end residences in the last three years. Mall culture
among households is high as the cluster lacks high
streets.
BKC-Kurla West
(Emerging)
BKC is already been viewed as the emerging CBD
of Mumbai. Presence of several large financial
institutions and pharma companies amongst others
ensures high footfalls and is looking to be the most
premium office destinations. The spillover effect of
BKC has been felt on Kurla West as well, which is
developing rapidly.
Commercial activity is strong in the vicinity. The
cluster will witness large number of completions
of high-end residential units while it already
is emerging gradually on the consumption
parameters. There is 1 mall in the vicinity and it
enjoys reasonably good footfalls.
The cluster will witness ample demand going
forward. However, developers will have to strike
a balance with high rentals it commands. With
successful operation of malls such as Phoenix
Market City in Kurla W, we believe it has potential
to grow. In addition, F&B and automobile sector are
looking to be easy entrants among others.
Malad-KandivliBorivli
(Emerging)
This cluster has come to prominence due to its
good road & rail connectivity to major commercial
destinations and to South Mumbai. In recent times,
it has shed its image of a cluster inhabited by lower
or middle-income population. Our consumption
parameters suggests gradual pick-up in demand
for retailers
Residential activity has picked-up steam over last
few years. By 2015, this cluster would witness
second highest completions of high-end residential
units. We also foresee gradual emergence of
commercial activity which would help enhance
retail footfalls.
Despite 2-3 prominent malls in the neighborhood,
we believe there is ample scope for further
development of retail considering the population
size and growth. An upcoming mall, should receive
positive interest from retailers, also considering its
relatively low rentals.
Thane
(Emerging)
This cluster has become the hotbed of residential
An erstwhile hub of lower and middle-income
construction activity due to its affordability and vast
population, Thane has lately completely
transformed into a self-sufficient city, barring major expanse of unutilized land towards the interior.
commercial activity. Many high-street and malls has
kept the retail activity bustling.
Affordable rentals and availability of space, coupled
with rising population and incomes will be the key
trigger to further development of retail activity in
this cluster.
Vasai-Virar
(Futuristic)
This cluster has seen a large influx of population
from erstwhile affordable residential corridors of
Mumbai as well as new migrant population who
could not afford a house in Mumbai. Therefore,
while the inherent population is largely middle-class
or lower, the new influx of population is largely
higher consuming class.
Although starting to pick-up, property prices are
relatively reasonable. There is no prominent
Grade-A malls in this cluster, and shoppers usually
frequent to high-streets and stand-alone stores to
cater to their consumption needs.
Due to large-scale residential development, there is
scope for retailers to tap the potential consumption.
Few branded outlets have already started to foray
into some of the high-streets. However, organized
retail in the form of malls could be some time away.

16. 16 INDIA‘S RETAIL LUXURY QUOTIENT
Bangalore
Luxury retail driven by IT development in the city
Zara, LV,
Hi-Design,
Tag Heuer,
Jimmy Choo,
Paul Smith,
Emporio
Armani, Clarks
Audi, BMW,
Mercedes,
Jaguar, Land
Rover, Rolls
Royce
Cost for two
is greater than
INR 2,500
(excluding
beverages)
The featured brands do not make a comprehensive list of all the brands present in the city.
North Bangalore
0
4
10
0
4
9
Malleshwaram, Yeshvantpur, Bellary Road, Hebbal,
Hennuru, HSBR Layout
East Bangalore
Old Madras Road Whitefield Road, White field
Central Bangalore
MG Road, Commercial Street, Cunningham Road, Brigade
Road, Vittal Mallya Road
South and South West Bangalore
Bannerghatta Road, Sarjapur Road, Hosur Road, Outer
Ring Road, Electronic City
0
8
24
5
0
8
ESTABLISHED
GROWING
EMERGING
LOCATION
LOCATION ADVANTAGE
REAL ESTATE PARAMETERS
FUTURE OUTLOOK
Central Bangalore
(Established)
As Bangalore‘s CBD, the cluster houses the
city’s major banks, hotels and offices. This
location is also lined by many premium and
luxury national and international retail brands
and therefore experiences large volume of
footfalls.
This location hosts Bangalore’s most prominent malls—UB City,
Leela Galleria, Garuda Mall and Forum 2 to name a few. It also
has a few prime high streets that house local as well as national
and international brands. This location enjoys good demand
from retailers, but the availability of quality retail space is a
challenge. As a result, the retail rents to INR 90–INR 150 per sq
ft per month on the high streets and INR 200–INR 250 per sq ft
per month in the malls.
As there is less scope for new development,
the supply of quality retail space is restricted.
However, good footfalls in this location will be
the key attraction to drive the retailer demand.
East Bangalore
(Growing)
Most preferred IT and residential suburbs of
Bangalore. Good connectivity and availability
of social infrastructure attracted overall
development and it has luxury residential
projects, prime hotels and malls. It witnesses
strong demand for retail due to the rising
population of IT employees.
This location is saturated with good malls such as The Forum
Value Mall, Inorbit Mall, The Park Square Mall and Phoenix
Market City Mall. This location enjoys good demand from
retailers due surrounding catchment of IT employees and retail
rents to INR 40-60 per sq ft per month on the high streets INR
150-200 per sq ft per month in the malls.
Quality malls continue to be developed in the
area. Development of office spaces and high
end residential projects in this location will
drive luxury retailer demand.
North Bangalore
(Emerging)
It is fast emerging as the next business
destination of the city with development
of business parks. This is also surging the
development of high end and premium
housing in this location. Consequently retail
developments are also coming up.
This location has Orion Mall, Market City West, Vaishnavi Mall,
Golden Grand Mall and Esteem Mall. This location also has few
prominent high streets with good brand presence. This location
is fast growing and so it enjoys good demand. Retail rents to
INR 50-70 per sq ft per month on the high streets and INR 150200 per sq ft per month in the malls.
There is large scope for new development
in this location. There are few good malls
expected to be operational in this sub-market.
Development of office spaces and residential
projects in this cluster will be the key attraction
to drive the retailer demand.
This is an emerging business destination that
connects the central city to the Electronic City.
Good connectivity spurred the development
of office and residential developments in
this location. These developments led to the
construction of high streets and malls.
This location has one of the prominent malls of Bangalore—The
Forum Mall—along with Garuda Swagath, BB Mall, Gopalan
Signature, Unitech Mall, Total Mall, SJR Spectrum and Soul
Space Spirit. This location is enjoying good demand and
retail rents of INR 70–INR 90 per sq ft per month on the high
streets and INR 80–INR 150 per sq ft per month in the malls.
In addition, rapid population growth and ease in travel has
increased the catchment reach.
It has a large scope for new development.
It has a few malls under construction. The
development of office and residential sites
along Bannerghatta Road, Hosur Road and
Sarjapur, together with Electronic City will be
the key attraction to drive the cluster’s retailer
demand.
South and South
West Bangalore
(Emerging)

17. INDIA‘S RETAIL LUXURY QUOTIENT
17
Chennai
Well-known as one of the cities with best in-class high street
retail destinations
Audi, BMW,
Mercedes,
Porsche,
Jaguar, Land
Rover
Zara, LV,
Hi-Design,
Tag Heuer,
MontBlanc,
Bottega Veneta,
Starmark, Paul
Smith, Clarks
Cost for two
is greater than
INR 1,500
(excluding
beverages)
The featured brands do not make a comprehensive list of all the brands present in the city.
1
0
16
1
6
25
T Nagar
Usman Road, Ranganathan Road, Pondy Bazaar
Nungambakkam
High Road, KNK Road
Adyar
0
1
0
0
0
6
SP Road, LB Road, Gandhi Nagar
Velachery
Velachery Bypass, Velachery Main Road, Taramani Road
GST Road
2
0
7
Tambaram, Chrompet, Pallavaram
ESTABLISHED
GROWING
EMERGING
LOCATION
LOCATION ADVANTAGE
REAL ESTATE PARAMETERS
FUTURE OUTLOOK
T Nagar
(Established)
The cluster only comprises high street destinations that
produce an optimum mix of all categories of retailers,
including value, lifestyle and luxury. It could be identified
as one of the highest grossing high streets in the country
with very good connectivity through rail and road.
High street retail is the talk of the town for this cluster. The age-old
presence of this cluster and its fame attract consumers well beyond
Chennai; therefore, this cluster does not rely on the neighbourhood
residential catchment. Its consumer demand and absence of space
pushed the rent to the range of INR 120–250 per sq ft per month.
The absence of new supply is
a concern. As a result, large
footfalls could lead to higher
rents in the existing areas.
This is another well-known location in the city that is
surrounded with MNC and government offices and
foreign consulates. It is also one of the oldest locations
with good rail and road connectivity.
It is one of the prime residential locations in the city with an increasing The potential for retail growth
is high and the only concern is
retail demand and growing space crunch. Bergamo Mall, the hub of
retail space shortage.
luxury retail destination, is present here amid a number of small and
midsized shopping centres and high street retail destinations. The
rents are within the range of INR 120–INR 250 per sq ft per month.
A posh and upscale upper-mid and high segment SEC
A residential destination and another prime location
for high street retail, the location also boasts of good
connectivity to the other parts of the city, which attract
consumers from across the city.
The high street retail is primarily supported by the neighbourhood
catchments who reside in the high-end properties developed few
years ago. This location does not have a mall as high streets cater
the retail demand. The retail rents are within the range of INR 90–INR
150 per sq ft per month.
We expect the area to attract
more luxury and high value
retailers amid the presence of
both consumers and affordable
quality space
Another residential area in Chennai, its growth could be
attributed to the growth in the city’s IT/ITES industry with
its strategic advantage in location and connectivity to
OMR and the central city.
Velachery and its neighbourhoods witnessed the launch of more than
500 high-end residential units in the last three years. This location
saw two malls opening up this year including Phoenix High Street,
the largest mall in Chennai. It also possesses good high-street
destinations. The rents are within the range of INR 75–INR 110 per
sq ft per month.
The retail outlook of Velachery
looks promising with the growth
of commercial sectors in the
vicinity of OMR.
It is one of the upcoming locations very well connected
with roads and a proposed metro. In addition, a number
of star hotels have come up in the area and it is shifting
toward organised retail.
The emergence of IT along with other industries and the established
residential catchment both support the high street retail. While the
presence of an airport has drawn luxury car showrooms, lower rents
of INR 30–INR 60 per sq ft per month supports the retail activity in
this emerging location.
With more upcoming organised
and quality retail space, the
demand is complemented by
residential growth in the uppermid segment.
Nungambakkam
(Established)
Adyar
(Established)
Velachery
(Growing)
GST Road
(Emerging)

18. 18 INDIA‘S RETAIL LUXURY QUOTIENT
Pune
Amidst demand-supply imbalances between various clusters
in Pune, the city can offer good retailing opportunities
Zara, LV,
Rolex, Tag
Heuer, Diesel,
Boggi Milano,
Timberland,
Clarks
Audi, BMW,
Mercedes,
Jaguar, Land
Rover, Renault
Cost for two
is greater than
INR 1,500
(excluding
beverages)
The featured brands do not make a comprehensive list of all the brands present in the city.
Aundh-Baner
3
0
10
0
2
5
DP Road, Baner Road
FC Road & JM Road
FC Road, JM Road, Deccan
Koregaon Park- Bund Garden
3
1
33
North Main Road, Bund Garden Road
MG Road & Camp
3
1
6
0
1
21
0
1
22
MG Road, East Street
Kharadi- Hadapsar
Magarpatta Road
Nagar Road- Kalyani Nagar
Nagar Road
ESTABLISHED
GROWING
EMERGING
LOCATION
LOCATION ADVANTAGE
REAL ESTATE PARAMETERS
FUTURE OUTLOOK
Koregaon ParkBund Garden Road
(Established)
This cluster is located in the heart of the city and is
an established residential corridor, mostly of high-end
households. Commercial activity co-exist thereby
ensuring high footfall. The cluster scores high on
consumption parameters making it preferable for
retailers.
There is limited presence of organized retail apart from
high-streets where footfalls are high. Availability of land
is scarce for further retail development. Rentals in high
street are high.
High rentals and unavailability of land
acts as a deterrent for retailers, who have
to focus on existing high-street locations
for making an entry. However, demand
continues to remain high in this cluster
from boutiques and F&B.
This cluster houses a large number of SEC A
households and also has large student population that
creates demand for a variety of retail outlets. It has a
concentration of commercial space too.
This cluster has supply constraints. However it has
prominent high-streets for retail. Rentals are high
considering limited scope for new retail space to arrive.
Demand will continue to remain high and
so will the rentals
This is an old residential and commercial establishment
near the Pune railway station. The footfalls in the cluster
are high. It scores high on consumption parameters as
well.
The cluster has two malls. One of them enjoys good
footfall, low vacancy levels and high rentals. It has high
streets, although the demand for organised retail could
be higher.
Demand is very high. Availability of
space, high rentals and competition from
high streets could be a concern for mall
retailers
FC Road-JM
Road-SB Road
(Established)
MG Road-CampDhole Patil Road
(Established)
Kharadi-Hadapsar
(Growing)
Nagar RoadKalyani Nagar
(Growing)
Aundh-Baner
(Emerging)
This cluster boasts of upper-mid and high-end residential The cluster has two existing malls which mostly receive
households and continues to pick-up as a residential
good footfalls. Amid the scope for future development of
destination. Commercial activity too is high.
retail, preference for location and quality of retail space
remains the key parameters to be carefully considered.
The cluster scores high on consumption parameters
which indicates rising demand and growing affluence.
This cluster is promising looking at the
gradual rise in consumption parameters.
It is likely to witness to large supply of
high-end residences in next 2-3 years.
Residential growth picking up on the back of large
number of upper-mid and high-end residential
households high commercial activity acts advantageous
for the location.
The cluster has three existing malls with good footfalls.
Amid the scope for future development of retail,
preference for location and quality of retail space remains
the key parameters to be carefully considered. High
consumption parameters indicating the rising demand and
growing affluence talks about the cluster
Large supply of high-end residences
in next 2-3 years is promising for this
cluster with gradual rise in consumption
parameters
Until recently, the cluster was not ready for retailers
or mall culture. However, with the recent increased
penetration of commercial IT and high-end residential,
the demand for retailers is growing.
There are supply constraint of malls as of now, but there
is one mall under construction. Demand is gradually
gaining strength and availability of space may not be
much of an issue at this point.
The scope for retailers is high. As
the demand is strong, availability of
space is not an issue and rentals are
comparatively reasonable.

19. INDIA‘S RETAIL LUXURY QUOTIENT
19
Hyderabad
Southern India’s hub for Luxury cars
Zara, LV,
Hi-Design, Tag
Heuer, Jimmy
Choo, Paul
Smith, Emporio
Armani, Clark,
Canali
Audi, BMW,
Mercedes,
Jaguar, Land
Rover, Rolls
Royce
Cost for 2 is
greater than
INR 1,500
(excluding
beverages)
The featured brands do not make a comprehensive list of all the brands present in the city.
Western Hyderabad
1
4
5
5
6
14
4
1
9
Hitec City, Kondapur, Kukatpally, Gachibowli
Off Central Hyderabad
Banjara Hills Road No 1, 2, 3, 10 and 12, Jubilee Hills
Road No 36 and 45
Central Hyderabad
SP Road, Begumpet, Punjagutta, Somajiguda, Nagarjuna
Circle, Secunderabad, Himayat Nagar
North Hyderabad
Vikrampuri, Tirumulgiri, Kompally, Dr. A S Rao Nagar
South East Central Hyderabad
Dilshuk Nagar, LB Nagar
ESTABLISHED
LOCATION
GROWING
EMERGING
LOCATION ADVANTAGE
REAL ESTATE PARAMETERS
FUTURE OUTLOOK
The central business district of Hyderabad,
it houses major banks, hotels and offices
of the city. This location is also lined by
many premium and luxury, national and
international retail brands and therefore it
experiences large volume of footfalls.
This location is mostly dominated by high street and has malls
such as Hyderabad Central. Prime high streets which house
local as well as national and international brands are Begumpet,
Somajiguda and Himayat Nagar. This location enjoys good demand
from retailers however as availability of quality retail space is a
challenge. As a result, the retail rents to INR 100-150 per sq ft per
month on the high streets.
As there is less scope for new development
the supply of quality retail space is restricted.
However good footfalls in this location will
be the key attraction to drive the retailer
demand
West Hyderabad
(Growing)
It is fast emerging retail destination as it has
an established IT business development in
the cluster. Most preferred IT and residential
suburbs of Hyderabad. Good connectivity
and availability of social infrastructure
attracted overall development and it has
luxury residential projects, prime hotels and
malls. It witnesses strong demand for retail
due to the rising population of IT employees.
This location has Inorbit Mall. Many prominent malls such as
Forum Crystal, Manjeera Trinity, City Capitol and SLN Terminus
are under construction in this cluster. This location is also emerging
as prominent high streets with good brand presence. This location
is fast growing and so it enjoys good demand. Retail rents to INR
120-150 per sq ft per month in a mall while high street rent is
about INR 110-130 per sq ft per month.
There is large scope for new development
in this location. There are few good malls
expected to be operational in this submarket. Development of office spaces and
residential projects in this cluster will be the
key attraction to drive the retailer demand.
Off Central
Hyderabad
(Growing)
Premium residential location of Hyderabad.
It houses luxury residential projects, prime
hotels and malls. It connects the central
part of Hyderabad with the IT hub of the
city- Hitec city. Therefore it witnesses office
and retail developments along its key high
streets
This location has the GVK One Mall and it houses many premium
and luxury national and international brands the high streets of this
location houses designer boutiques and Premium lifestyle stores.
This location enjoys good demand from retailers due surrounding
catchment and retail rents to INR 110-150 per sq ft per month on
the high streets and INR 150-175 per sq ft per month in malls for
vanilla outlets.
There is scope of development as many
residential streets are being redeveloped as
commercial properties. These developments
along with development of high end
residential projects will drive luxury retailer
demand in this cluster.
North Hyderabad
(Emerging)
This cluster is experiencing more of high
street retail activity. Mostly houses upper
middle class population. This location
has the cantonment area and also many
residential colonies. Therefore it witnesses
good demand for retail. Many brands have
their factory outlets in this clusters.
Predominantly high street development. Mall supply is a concern
in this cluster. Rents in this cluster range in between INR 80-100
per sq ft on the high streets for good quality properties.
There is large scope of development.
Development of villas are expected to drive
demand in this clusters
South Central
Hyderabad
(Emerging)
This cluster is experiencing more of high
street retail activity. Mostly houses upper
middle class and middle class population.
This location has many old residential
colonies. Therefore it witnesses good
demand for retail.
Predominantly high street development. Prajay Princeton Mall
is operational in this cluster. However, mall supply remains a
concern in this cluster. Rents in this cluster range in between INR
80-100 per sq ft on the high streets for good quality properties
There is large scope of development in this
cluster as there are many new residential
projects coming up in this cluster.
Central Hyderabad
(Established)

20. 20 INDIA‘S RETAIL LUXURY QUOTIENT
Kolkata
The third most populous city in India with a very high
disposable income
Audi, BMW,
Mercedes,
Jaguar, Land
Rover, Porsche*
Burberry*,
Hi-Design,
Omega, Rolex,
Michael
Kors*, Gucci*,
Emporio
Armani*,
Canali*
Cost for two
is greater than
INR 1,500
(excluding
beverages)
*expected to be operational by end-2013
The featured brands do not make a comprehensive list of all the brands present in the city.
0
0
20
North-East KOLKATA
Salt Lake, Kankurgachi, VIP Road, New Town Action AreaII, Ultadanga, Jessore Road
Prime Central
3
7
39
3
0
6
Esplanade, Chowringhee, Park Street, Park Circus, Camac
Street, Shakespeare Sarani, Elgin Road, AJC Bose Road
EM Bypass & Connectors
Topsia, Kasba, EM Bypass Central stretch
Prime South
0
1
19
Ballygunge, Gariahat, Dhakuria, Prince Anwar Shah Road
ESTABLISHED
LOCATION
Prime Central
(Established)
North-East
Kolkata
(Growing)
Prime South
(Growing)
EM Bypass &
Connectors
(Emerging)
GROWING
EMERGING
LOCATION ADVANTAGE
REAL ESTATE PARAMETERS
FUTURE OUTLOOK
As one of the oldest part of Kolkata, it is well supported
not only by the existing office sector—which accounts
for corporate headquarters, BFSI industries and other
regional offices—but also by residential units as it is the
home of most of the corporate executives and HNWIs.
With the presence of Alipore (most premium residential
location of Kolkata) in the vicinity, more than 200 high-end
residential units were launched in the last three years.
Aside from high street retail as its most prominent feature,
Kolkata’s popularity is also boosted by the presence
of the prime malls Forum and Forum Courtyard and is
expected to house Quest, a large luxury mall that will be
operational by end-2013. Meanwhile, foreign banks’ main
offices and a number of luxury car showroom talks about
the retail demand. The high street rents could be in the
range of INR 275–INR 400 per sq ft per month.
The absence of quality future stock in
the long run is the prime concern with
the prediction of robust growth in luxury
retailing.
The existing posh and upscale Salt Lake and
Kankurgachi neighbourhood and the upper-mid
residences in the nearby areas along the vicinity of the
PBDs as well as good connectivity through road and
suburban rail with the suburbs help sustain the location’s
growth to a longer term.
: With more than 200 high-end residential sites, residential
growth through the plotted developments is booming. The
location is seen to grow with the presence of four malls
alongside other high street destinations. The rents are
within the range of INR120–INR 200 per sq ft per month
The long-term retail growth prospect
seems good as more residential
developments are catching up with the IT/
ITES industry growth in the city’s PBDs.
The cluster is one of the city’s developed retail locations
with the presence of Gariahat as one of the most
prominent value high street designation alongside the
high-end residential neighbourhoods of south Kolkata,
which is connected well to other parts.
More than 200 high-end residential units had been
launched in the last three years, which reciprocates the
growth in the location with the presence of South City
Mall, the largest and one of the best performing malls
in the eastern India. It has the optimum mix of small to
midsized malls and prominent high street districts. The
rents are INR 175–INR 225 per sq ft per month.
The absence of new organised mall
stock is the prime concern amid the huge
potential of luxury and lifestyle retail
growth.
The presence of EM Bypass and its proximity to the
Prime Central and Prime South clusters at different point
with easy connectivity to PBDs and CBD are the cluster’s
attractive factors.
With the provision of developable land, it
More than 550 high-end residential units were launched
could develop as it is backed up by the
in the last three years, making it one of the most active
growing high-end residential catchment.
residential destinations. With one upcoming mall and a
few under proposal, it could be the next hotspot in the city,
with the present rents ranging INR 150–INR 200 per sq ft
per month.

21. INDIA‘S RETAIL LUXURY QUOTIENT
FDI in India
and Luxury
Retailers
1997–2005
2006–2010
2011–2012
2013...
FDI in cash and
carry allowed in
India
2006 – FDI of up to 51%
were allowed with
prior government
approval in single
brand retail
2008 – Government
had discussion on
allowing 100% FDI
in single brand
retail and 51% FDI in
multibrand retail
2012 – Government
raised FDI cap
over single
brand retail and
allowed 51% FDI in
multibrand retail
2013 – Government
relaxed the clause
of 30% of products
to be sourced
locally and
allowing retailers
to set up stores
in cities with less
than a million of
population
• International luxury retail in India is still new
• Most of the retailers adopted either franchising or joint venture routes
• Ermenegildo Zegna, Louis Vuitton, Hugo and Chanel entered India
• More than 50 global brands set foot for India foray, which included
prominent luxury brands such as Hermes, Gucci, Dior, Fendi,
Canali, Burberry, Emporio Armani, Jimmy Choo
• Franchising, joint venture and distribution arrangements continued
to remain the entry strategies for retailers
• DLF Emporio and UB City, the first luxury malls in India, started
operations in 2008
• Retailers focused mostly on Delhi, Mumbai and Bangalore to open
their stores
• Tumi, Bally, Armani Junior, van Laack, Roberto Cavalli, etc opened
stores in India
• Many luxury retailers continue in joint venture formats because of the
expertise of their local partners
• Luxury retailers were optimising store sizes because of significant
increase in rents
• Rents for luxury stores increased significantly because of the lack of
available quality space
• INR 8.5 billion proposals were cleared by the government in single
branded retail until April 2013
• French fashion brand Promod, France-based crockery maker Le
Creuset, US-based accessories firm Fossil, Inc and French sports
giant Decathlon have sent proposals to the Foreign Investment
Promotion Board (FIPB) for approvals to open single branded stores
• Japanese retailer Uniqlo and Sweden’s and France’s Richemont are
planning to enter India
• Availability of quality real estate to accommodate the requirements of
luxury retailers is still a challenge
21

22. The Road Ahead
Demand–supply Gap to be narrowed
With rising incomes, better education and young-age by their side, Indian
consumers have emerged as a force to reckon with in terms of their potential
spending power. Mature domestic brands and many popular global brands
have already made forays into the country, with many more waiting for their
first tranche of investment. Although the future of luxury retail in India is
promising because of these aspects, it has its own challenges. In addition
to this, the availability of retail spaces that are on par with global standards
is another challenge. This challenge can be addressed by developers who
have to focus on building strategically in terms of location and design of the
property. Retailers are aggressive in their expansion plans, albeit cautious
about property selection. They are not only looking for properties that suit
their operations and costs, but also their customers in terms of the location,
facilities and overall shopping experience. They are focusing on the quality
of the malls, along with the mall management, tenant profile, etc, all of which
are acting as factors responsible for the success of the malls.
Opportunities in the Emerging Cities and Locations
Most Tier I and Tier II cities are bursting at the seams, with more upper
income and middle income consumers penetrating deeper into suburbs
where organised retail opportunities are presently limited. The saturation of
established retail markets closer to the prime city centres is a compelling
factor for developers and retailers to focus on this emerging consumption
hotspot. Early movers will enjoy the advantage of leasing space at
cheaper rentals, although not before a thorough profiling of the cluster
demographics is done. Analysis of cluster-level data on population
characteristics, future commercial developments, upcoming residential
units, etc has become increasingly important for the retailer to decide
on a location.
Policy Support
Clarity on FDI policy remains as a key concern. However, in recent
times, the erstwhile reluctance for government reforms is gradually
transforming, considering the difficult investment scenario that the
global retailers has been highlighting. The bigger challenge, however,
remains in getting the Indian polity’s approval and achieving majority
consensus. Until that time, such concessions are likely to remain on
paper. Retailers are likely to seek more clarifications and concessions;
therefore, real ground activity on FDI inflows in retail is likely to be slow
for the meantime.

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Jones Lang LaSalle Retail contacts in India
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For more information about Research contact
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Authors
Sujash Bera
Assistant Manager, Research and REIS
sujash.bera@ap.jll.com
Suvishesh Valsan
Assistant Vice President, Research and REIS
suvishesh.valsan@ap.jll.com
Trivita Roy
Assistant Vice President, Research and REIS
trivita.roy@ap.jll.com
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