Luxury malls or private clubs? Shop till you drop in a personalised way

Luxury malls nowadays are designed to give wealthy customers the feel of a private club where they can shop at ease

Enter Palladium Mall in Mumbai or Chanakya Mall in New Delhi and you will be besotted by the finest names in high street fashion and international labels: the likes of Dior and Todds, Panerai, Jimmy Choo and Michael Kors. But apart from an army of brands, what is it that sets apart a luxury mall from a regular mall.

It's an all pervading and consistent experience of luxury in everything: from services to entertainment and design. According to Arvind Singhal Chairman and Managing Director of Technopak, “Successful luxury malls provide a highly personalised shopping experience with services such as personal stylists, concierge, valet service, curated F&B and entertainment options, exclusive retail events etc. Additionally, luxury malls compete to offer a differentiated shopping environment with specialty themes and features such as fountains, gardens, and digital architecture, etc. so that it is more than just another mall.”

Luxury in its very essence thrives on exclusivity and personalised experiences and malls are always working on unique experiential concepts besides just a number of luxury brands.

These luxury spaces almost function like a private club where the customer likes to not just spend money but spend time: eating, lounging, doing spa, or even buying groceries in one destination. Dinaz Madhukar, Executive Vice President of DLF Luxury, Retail and Hospitality, shares how one of the learnings from Emporio that they incorporated at Chanakya was to keep more diverse activities that the customer could engage in, such as grocery shopping and more elaborate food and beverages section, and sure enough at Chanakya, she says she encounters the same customer “even four times a week” just as it were in a “private club.”

Spending in style

But when it comes to the real deal-maker—the “spend”—where are customers spending and what are the fastest-moving categories at uber lux malls? Accessories such as belts, shoes, wallets, and bags which are the bestsellers, says Rajendra Kalkar, President West, The Phoenix Mills, where Palladium is located. He adds that customer are also spending on a heady mix of categories like watches, electronics and high street luxury brands.

Gen Y. Millennials are driving the consumer market, and the luxury mall is no exception. Unlike the previous generation’s attitude of spending discreetly and as per need, there is a paradigm change in mindset for millennials, who spend as per aspirations. According to Kalkar, “The changing social fabric of the country has opened up a third option for young India – leisure. Millennials spend on fine dine (sic), electronics, experiences, travel, high street luxury fashion. They have greater preference for luxury items as compared to Gen X and baby boomers.” He says that apart from the millennials, it’s the wealthy single consumer in top metros and a booming consumer segment in tier-2 cities which have shown luxury segment a new dawn.

There is gender balance in luxury shopping, it seems. The man to woman ratio is almost the same, around 49:51, says Dinaz Madhukar. On working days, women may be more visible at luxury malls but they are often shopping for husbands, children and extended family, which is not the case with men. There are nuanced differences in their shopping styles with men spending less time as they know exactly what they want, whether its belts and wallets, pens and watches—they come, spend and are sorted within no time. However, women spend more time because they like exploring and it’s great to have them as they bring a vibrancy, says Madhukar.

Selecting designers

Who vies for greater attention of the Indian HNI: the homegrown desi designer wear or the global design labels? Mall managers say for occasions such like weddings or baby shower, the desi designer wear rules but for regular casual or business wear, it’s the global brands.

A close contender to luxury malls are the traditional hi streets which are equally popular with the high net worth individuals. And there are retailers who swear by high streets and would not go to a mall. Take Raw Mango, which is opening a second store at Delhi’s Lodhi Colony Market after one in Angoori Badi, Chhatarpur. For Sanjay Garg, Founder Raw Mango, “malls are still quite transactional and in the nascent stages of thinking” as against “a standalone store, where from the moment you step inside, you are enveloped in a visual experience that is rooted in culture, heritage and history. Everything from our textiles, visual merchandising to the various cultural events we host in our spaces, each have a role to play that goes beyond what you see on the surface, or just the 'sales' aspect. That being said, being open to possibilities is how we have grown and there is no line drawn in the sand for our retail experiences.”

What about the customers who shop at both Khan Market and a DLF Emporio? According to Saloni Mittal, a regular at both these places:

“When I have to go alone for serious shopping, I only go to the high streets but if it’s with the family and is more like an outing combined with shopping, then it’s a mall as it protects you against the weather and has a more fun and experiential vibe. Children can be kept busy at the interactive play areas.” From a consumer wanting to shop at a multi-brand outlet, to high street brands to luxury brands, a mall has something for every consumer. Malls offer several entertainment options, fine dining restaurants and experiential events up the entertainment quotient and keep the customers engaged, ergo making the malls a one stop destination for the customers. What a luxury mall offers over and above a regular one are add on services like concierge, a personal shopper, a stylist to help their consumers strut their best foot.

High street shopping areas and standalone stores rely heavily on their catchment and access, whereas luxury malls become a destination because they offer so much more than just brands and merchandise, says Arvind Singhal. Today’s luxury mall customer expects not only their preferred brands, but also luxury experiences such as art installations, performances, services, plush surroundings, amenities such as rest areas, feeding rooms, lockers, and convenience that are not available in traditional high streets due to infrastructure constraints.

• Emporio, New Delhi : Pure luxury
• Chanakya, New Delhi : Pure luxury
• Palladium, Mumbai : Mix of Luxury, Bridge-to-luxury & premium brands
• UB City, Bangalore : Pure luxury
• Quest mall, Kolkata : Mix of Luxury, Bridge-to-luxury & premium brands