Saddi Dilli scores over Aamchi Mumbai for launch of global brands

18 May,2015

By Rasul Bailay & Ravi Teja Sharma

 

Delhi seems to have become the favoured location for brand launches. Arvind Lifestyle Brands, which sells Calvin Klein, US Polo and Nautica products in India, generates 20% more revenue from its stores in prominent malls in the Delhi region than elsewhere. Which is why Gap, now on the Arvind roster, will have its high-profile start in Delhi. As will rival H&M (Hennes & Mauritz).

 

US food chains such as Burger King, Johnny Rockets and Wendy’s have also made Delhi their first port of call. Consumers in Delhi and its surrounding areas have higher spending power, according to retailers and analysts.

 

The region also has some of the largest and most successful malls in India, catering to the region and neighbouring cities of Chandigarh, Ludhiana, among others.

 

The National Capital Region (NCR) has 15 successful malls compared with 10 in Mumbai, according to property advisory firm JLL India. NCR has around 100 operational shopping centres, it said.

 

“The availability of quality space in premium locations in the NCR is more,” said Pankaj Renjhen, MD for retail services at consultancy firm JLL India. “Brands usually want to launch from a top market. That market in Mumbai is south Mumbai, which only has one good mall. In comparison, south Delhi has five good, performing malls.” The Select Citywalk, Ambience and DLF Promenade malls are popular with foreign food and fashion retailers.

 

“Delhi records higher productivity for any fashion store and Delhi is all season, where you not only sell summer apparel but also winter clothing,” said J Suresh, CEO of Arvind Brands. “Also,, Delhi today is by far No. 1 in terms of fashion adaptation.” Suresh said the Delhi opening for Gap was a function of the company being able to secure space in Select Citywalk.

 

According to marketing and social commentator Santosh Desai, Delhi has taken over from Bengaluru as the preferred launch pad for some foreign brands. “In terms of size, the Bengaluru market is shallower than Delhi,” Desai said. “For any new entrant Delhi provides a sizeable opportunity.”

 

Jaspal Singh Sabharwal, a partner in Everstone Capital that brought Burger King to India, said that starting in New Delhi or Mumbai is “usually reflex driven rather than judging the city on its merits.” Sabharwal said, “The consumption and strategic potential of both the cities is almost equal but Delhi does score over Mumbai in terms of better quality-price-availability equation of real estate options and a much larger presence/in and out flow of migratory population.”

 

Source:The Economic Times

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