Opinion by Prashant Gaurav Gupta, vice president, and head, DLF Luxury Malls
The year 2020 has proven to be a testing time for not only the retail sector but for everyone across the globe — be it hospitality, F&B, travel or automobiles. Covid-19 has made all of us pause and rethink our strategies to bounce back stronger and safer.
There is a significant change across sectors and a complete transformation in the way businesses are operated. With respect to the luxury retail industry, the shift we are observing right now is majorly in the consumption patterns of consumer behaviour.
Earlier, the majority of luxury shopping was reserved by the consumer for their international trips. But now due to the restrictions, we are witnessing an increased consumption coming from within the country. For DLF Emporio and The Chanakya, we have seen a significant increase in the footfall that are matching up to the numbers we had before the lockdown as they are the primary choices for people to satisfy their luxury needs in the country. The most evident shift in consumers is that they have become focused buyers and no longer need to visit the mall to window shop and browse through the products.
For our buyers who are trusting us and visiting the malls, we are strictly adhering to the guidelines shared by the WHO (World Health Organisation) and MHA (Ministry of Home Affairs); there is a sanitisation tunnel for cars and parking is contactless. An automated hand sanitiser is placed, literally, at an arm’s length wherever there is a touchpoint, across the premises as well as at the stores. We have also installed high-definition thermal cameras to enable seamless entry within the mall. All guests and employees are required to have Aarogya Setu App installed on their smartphones, and everyone must wear face masks before entering the mall. We also provide face masks to shoppers who come without one. Additionally, based on the square foot area allotted to each brand, we have mandated our stores to allow only the right number of people inside to maintain social distancing.
Speaking about the luxury segment, I believe that it is all about the quality of service that differentiates the brand. Exclusivity has always been fundamental to luxury, as it maintains consumer desire through scarcity and rarity. Hence, it is imperative for us to have a fine balance between the physical and digital experience. In the end, it is majorly a service that differentiates quality in the luxury segment – how well can you serve your customer and the trust you can build amongst them.
While we all agree Covid-19 has definitely led to an increase in digital buying, the luxury retail segment is primarily driven by the consumers’ desire for indulgence and immersive experiences, which cannot be fulfilled via digital channels alone. Luxury holds a more symbolic value over function for most, and digitalisation of brands can only amount to be a temporary solution.
I thus believe that in India, brick and mortar experience will continue to dominate the post-Covid era, especially when it comes to high-value purchases. Each product has a story to tell, and a lot of man-hours go into bringing this story alive with the end result. Thus, one cannot really eliminate the sense of touch and feel from luxury in the long run.
