Lack of liquidity puts pressure on India's malls. Shubhranshu Pani, Managing Director of Jones Lang LaSalle Meghraj predicts, "A fair number of projects will not see the light of day, as funding has dried up."

167,000 US$ millionaires

With compound growth rate of around 35% - signs are the luxury segment may be recession proof, current expectation is that consumption of luxury retail goods will grow through 2009.

While wealth has been hit in India - in December 08, the country's 40 wealthiest individuals were said to be worth 60% less than 12 months previous - there is still a sizable segment of wealthy consumers ready to spend.

2008 CapGemini Merrill Lynch Asia Pacific Wealth Report concludes there are 167,000 Indians with more than US$ 1 million in assets (up 22% on 2007). Their significance is such that, Shri Kamal Nath, Union Minister of Commerce and Industry, recently spoke of the importance of the luxury sector to India when addressing the Mint Hindustan Times Luxury Conference.

Luxury malls

An increased propensity to travel has provided Indian's with greater awareness of not only international brands but also what is expected of flagship retail. "The service expectation (in India) is exceptionally high," says Esprit (India) COO Manjula Tiwari. Evidence suggests that India's developers are beginning to understand the crucial "added extras", of service delivery.

Three ultra luxury malls will open in Mumbai this year, and Hirani Group plans a nine level, 55,000 sq ft mall, that will offer leading international brands. Chairman, Pradeep Hirani explains that the mall will, "provide an experience that defines elevated living".

Milan, London, Paris, Delhi

Analysts expect Delhi's luxury sector to be the most resilient due to its mixed economy and none reliance on financial services or software sector.

DLF's Emporio (see pictures) redefined luxury retailing in India when it opened in October 2008. Positioned as "a premium luxury shopping-cum recreation center" it sets new standards and provides access to international and Indian luxury brands, including the likes of Louis Vuitton, Dior, Jimmy Choo, Cartier and Giorgio Armani.

Five-star exclusivity

A concierge desk and taxi service, add a sense of exclusivity to the refined design of the mall. A planned spa, salon, fine dining restaurant, 'roving' concierge service and members club will increase the feeling of five-star exclusivity.

Anecdotal evidence suggests that sales are good. Providing the luxury end of the market remains resilient over the next 6 months or so, expect the Emporio brand to be rolled out to carefully selected metropolitan cities across India.

Image source - DLF