"Do you wanna know what comes between me and my Calvins?

Nothing."--this iconic line by a certain teenager named Brooke Shields catapulted her into instant fame and, in a way underlined the influence of brands in defining our social fabric.

A gentle breeze swept across my face as I entered the DLF Emporio Mall in New Delhi. For one moment it felt like I was in another world- someplace like Milan's Via Monte Napoleone, London's Bond Street, or the venerable Fifth Avenue in New York... a smorgasbord of everything fashionable and haute! Emporio is India's answer to other International fashion capitals-- concierge service, 5-star ambience, presence of revered brands like Dior, Gucci, Armani and Louis Vuitton and a shopping experience that is purely world class. Having said that, Emporio Mall is targeting only the creamy layer of people in the Wealth pyramid, but it serves as a shining example of the good things happening with Indian Luxury retailing at present.

Every brand has a story to tell... and the aura of exclusivity coupled with high income elasticity of demand takes care of the economics for premium goods. Gone are the days when the typical well-heeled Indian had to travel overseas to buy their favorite designer labels or ask their non-resident friends to grab the stuffs from Duty-Free stores. Almost all major Indian metros are now warming up to premium and ultra premium retail experience although retail space still remains a prime concern. Due to prohibitive real estate prices, many of the premium labels are increasingly looking at operating from luxury malls than from 5-star hotels.

Key Challenges:

1.       Lack of dedicated retail Space; fashion high street

2.       Expensive real estate; which significantly hits the bottom-line

3.       Increasing the client base; target the high income population

4.       Improve service offering

5.       Establishing 'Luxury' as a need among Indian customers

6.       Focus on affordable luxury for Indian customers

The Great Indian Retail story has been told, retold and foretold... and still we have a divided house full of enthused supporters and voracious detractors.  Are we ready for the big jump or is India not yet ready for the bigger stakes of premium luxury retailing? As Bob Dylan once famously crooned--- The Times They Are A-changin' and if we look around closely we can see certain subtle changes which auger well for the luxury goods retailing in India.

By 2009/10 India became home to around 126,700 millionaires, these high-income households present a huge customer base for the luxury labels. The Indian luxury retail market is growing currently at a CAGR of 25% meaning that consumers of luxury goods are warming up to luxury brands in a big way. According to BusinessWorld magazine's The Marketing Whitebook 2010-11, five neighborhoods in Mumbai and Delhi and one in Punjab account for 65 percent of potential luxury customers in India. Higher disposable income, propensity to buy, and a demand driven market are all pointing towards a huge potential for luxury goods and services in the days to come. The Indian economic growth story is complementing the Great Indian Retail story and together we are in for an exciting time.

As I gathered my thoughts, the aroma from the café in the central atrium of Emporio mall wafted towards me. I saw a lady nibbling on what looked like a Low Carb Catalina Salad; well known faces that I have seen only on television and magazine covers walked past effortlessly. The pace was unhurried, languid, as if shopping was always meant to be a sensory experience. This is the new India... yet so unlike India!