Battle between local and global brands
Even before they compete for a share of customers’ wallets, Hennes and Mauritz (H&M), Massimo Dutti and Gap are engaged in a battle with local and global brands that entered India before them for mall space. There are just around 20-24 good malls in India, say experts.
Most are fully occupied, and any retailer that wants to set up shop will do so at the cost of another, they say. The entry of these new brands will definitely be at the cost of existing retailers since most of the current malls are occupied when it comes to anchor tenant spaces said Pankaj Renjhen, managing director, retail services at real estate consultancy Jones Lang LaSalle. Developers are only too happy to accommodate them.
The newcomers are talking to all top malls in the country. And they are ready to pay a premium to ensure a well-defined space said the chief executive of a mall who asked not to be identified. Negotiations are on to replace some existing and some outgoing tenants, this person added. No one is being booted out, the head of another mall said.
Source: Mint
