Mr Mehul Choksi
Chairman and Managing Director
Group. India

in an interview with Retailer

Behind the great achievements and heralding luxury retail activities of the Gitanjali Group lies the greatness of Mr Mehul Choksi, Chairman and Managing Director of the Group. India has a royal heritage of luxury with its jewellery and diamond industry recognised world over. Out of six prominent jewellrry brands five are owned by Choksi. Therefore, he can certainly be called the Bernard Arnault of Indian luxury retail. Recently, Gitanjali group entered luxury retail  in India with the launch of 'Luxury Connexions' with an initial investment of Rs 100 crore. All business activities of Luxury Connexions will be operated under four verticals viz Advisory, Events, Media and Retail

Retailer: What is the current state of the Indian luxury retail industry? Are Indians ready for luxury retail?
Mehul Choksi: Indian luxury industry is at a very nascent stage. During the last four years, a huge potential has been built up. Presently, there are more than 17 lakh customers for luxury items in India and the market is growing at the rate of 25 to 30 per cent annually. India is poised for a big leap in the luxury segment and all major players are planning at least six to seven destinations to open a luxury mall or a store, and Indians are ready to pamper themselves.

Retailer: Which luxury retail areas (or sectors) can be successful in India?
MC: Apparels, hi-end watches, perfumes and cosmetics are very promising sections as far as luxury retail in India is concerned.

Retailer: Is there any scarcity of quality luxury retail space in India?
MC: Yes, the niche of luxury space is restricted to five-star hotels and a few premium malls only. With recognition of opportunity by real estate developers, it's a matter of time that we shall have luxury destination malls.

Retailer: Will luxury retail serve as a correction to mall failures in India?
MC: Luxury offering will have to be coupled with a high level of customer service, designer products and an experience for the customer. The existing malls will have to learn to make changes and re-launch the offering.

Retailer: Who are the target customers for luxury brands?
MC: The target group is in the age group of 24 to 40 years that has an inclination to live life in style. This target group is always very experimental, dynamic, educated and knows what they want to buy.

Retailer: What future do you predict for luxury malls in India?
MC: Luxury mall is a niche business proposition in retail industry. Investments are huge. The investment decisions have to be based on certain facts after understanding and visiting the market potential study. Luxury mall's future will depend on how it's positioned in the mind of the customers and the bouquet of brands offered. Any mismatch will lead to revenue losses and a loss-making project in hand.