Feedback
A pioneer B2B media and publication platform connecting with Fashion Brands & Retail in India
 

Vaccine rollouts, localization to boost India’s luxury retailer’s prospects

 

Vaccine rollouts localization to boost Indias luxury retailers prospects

 

Like all other markets, the luxury fashion rental market too is bearing the brunt of recurrent COVID-induced lockdowns. As per Money Control, almost 80 per cent property owners in Indian high streets have witnessed 14 per cent decline in their rents. One of these prominent high streets is New Delhi’s Khan Market whose rents have fallen and thereby Khan Market’s position as one amongst the top 20 most expensive retail high street markets in APAC has dropped to rank 21, says a report by Cushman & Wakefield.

However, despite this, Khan Market continues to be the most expensive retail market in India with a rent of $195 per sq ft. The second position in this category is occupied by old retail hub Connaught Place which covets a rent of $153 per sq ft. The third most expensive market is the DLF Galleria in Gurgaon whose rent is $113 per sq ft.

Lockdowns lead to 9 per cent decline in rents

As per the Cushman & Wakefield report, recurrent lockdowns have led to an average 9 per cent decline in rents across India. This rents ranged between 18 per cent and 14 per cent in Kolkata and Bengaluru respectively while the decline was limited to less than 2 per cent in Chennai and Ahmedabad.

Rents for almost 60 per cent high streets in the Asia Pacific region declined in 2020. One of the worst impacted was Hong Kong’s premier shopping district Causeway Bay, whose rents declined 43 per cent to HK$870 per sq ft per month.

Anshul Jain, Managing Director India and South East Asia says, the APAC region already has the largest base of global e-commerce users. Hence, its shift to online shopping post pandemic is perfectly comprehensible. The pandemic has also led to rise of the localization trend as shoppers preferred to shop from local brands to help them survive through the pandemic.

Around 50 per cent of 8,000 consumers surveyed by Rakuten Advertising reported spending on local brands. They are also avoiding international online brands and spending their money on domestic markets.

Omnichannel retail to boost luxury purchases

The pandemic has also increased the share of online luxury purchases from 12 per cent in 2019 to 23 per cent in 2020, says analyst Bain & Company. Consumers can now enjoy an omni-channel retail experience while shopping for luxury goods. This is likely to boost their luxury purchases leading to a further evolution of the luxury fashion goods sector, says the report.

Though the recovery of high streets is likely to be slow, global roll out of vaccine programs and the gradual return of retailers to normalcy will accelerate the overall recovery of retail sector, says the report.

However, this would also split consumer spending between value added and luxury goods. The global luxury retail sector rebounded within a year after the 2008 global financial crisis. This time too, the quick recovery of Chinese luxury sector paints an optimistic picture for luxury retailers.

LATEST TOP NEWS
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

India’s garment industry hit hard by second COVID wave: CMAI

India’s garment industry hit hard by second COVID wave: CMAI

    The Indian apparel industry, which was on a path to recovery since the beginning of this year, has being hit once more by the second COVID-19 wave. A survey conducted... Read more

COVID-19 suspends Amazon’s Prime Day sale

   The second COVID-19 wave has led to suspension of Amazon’s annual Prime Day sale in India. Along with Google and other Indian firms, Amazon has come forward to help India... Read more

Fashion retailers seek rental rebates

Fashion retailers seek rental rebates

     Fashion retailers are seeking rental rebates from high-street landlords and shopping malls as the COVID-19 pandemic continues to play havoc with their businesses. As per Money Control report, Benetton India... Read more

Conscious consumption drives launch of new sustainable collections in India

Conscious consumption drives launch of new sustainable collections in India

    The pandemic has caused some attitudinal change amongst Indian consumers. From racing to acquire latest fashion trends, they are now emphasizing on slow consumption. Growing popularity of plant fiber collections This is... Read more

E-tailers launch new solutions for sellers impacted by COVID-led disruptions

E-tailers launch new solutions for sellers impacted by COVID-led disruptions

     E-tailers are introducing new solutions for sellers suffering from pandemic-led effects. Startup Dealshare is doubling its pace of transforming business in small towns to online platforms. This helps the company... Read more

Apparel brands launch new initiatives, collections to attract customers

Apparel brands launch new initiatives, collections to attract customers

     To attract consumers, apparel and lifestyle brands have introduced a clutch of initiatives besides launching new comfortable clothing ranges and expanding online presence Label Ritu Kumar which has launched ‘Label... Read more

India’s menswear market a $34 billion opportunity for brands

India’s menswear market a $34 billion opportunity for brands

    Earlier restricted to staple products like jeans and polo shirts, Indian menswear market is currently bigger than women’s wear says a Vogue Business report. It’s estimated at $26 billion and... Read more

Fashion brands donate proceeds to COVID-19 relief

Fashion brands donate proceeds to COVID-19 relief

     To help India through its second COVID-19 wave, many fashion brands are offering their proceeds to NGOs supporting the cause. As per a Desi Blitz report, global sculptural design jewelry... Read more

Rents in India’s most iconic retail hubs decline

Rents in India’s most iconic retail hubs decline

     A study by Anarock Retail of average rentals of iconic retail hubs reveals a 17 per cent drop in rents for India’s most expensive retail real estate, the Khan Market... Read more

Promotions take backseat as brands focus on socially relevant ad campaigns

Promotions take backseat as brands focus on socially relevant ad campaigns

    The advertising world is changing with brands replacing product promotions with COVID-19 related content and messages on their social media handles reports Economic Times. Clothing brand United Colors of Benetton... Read more

MOST POPULAR NEWS
Go to top

Follow Us On:

Face BookDealersForYou

TWDFUpublications

LNDFUpublications

YouTubeDFUpublications

 Copyright © 2020 DFU Publications. All rights reserved.