01 August 2023, Mumbai
In a bid to combat the growing dominance of e-commerce, India is witnessing the emergence of at least six factory outlet malls, mirroring the US and UK trends.
Capitalize on ‘Premium Brands’
These retail facilities offer discounted premium brands year-round, a popular concept worldwide, but previously unorganized in India.
The recent success of a premium brand outlet mall in Delhi's Jasola has sparked interest in this model, with brands like Lacoste, Tommy Hilfiger, and Calvin Klein among those offering discounted prices.
Attract shoppers in the unorganized Retail Sector
Mall developers are now eyeing cities like Coimbatore, Bengaluru, Guwahati, and Punjab for similar ventures.
Industry experts predict that factory outlet malls, coupled with food and beverage options and recreational facilities, will gain popularity as they expand beyond malls and high streets to highways.
Outlook
Despite challenges such as setting appropriate rents due to heavy discounting, the trend of factory outlet malls is expected to shape India's retail landscape in the coming years.
