Luxury brands have no place in malls
In a recent article published in Business Magazine, two executives from the local luxury industry have stated that they are considering the relocation of the brands that they’re managing. Relocating in Malls was a solution they dismissed not long ago.
There are a couple of details that we feel we must clarify: which brands in their portfolio are we talking about and also what Malls are included.
Although Max Mara or Versace’s casual, mid level lines could undoubtedly make it to ANY Mall in Romania, we exclude the possibility that lines one and two at the level of Ermenegildo Zegna could relocate.
There’s also the category of “desperate brands” that are forced to accept any kind of relocation and by default any franchiser or distributor. These are the brands that are struggling at an international level, like Gianfranco Ferre, Laura Biagiotti, Escada, and so on.
As far as Malls go, all of those already build in Romania are at a mid, mass market level. None of the new malls announced in 2009-2010 have location and concept possibilities dedicated to luxury. They do not have a dedicated area or special wing for luxury brands, as is the case with the malls seen in Dubai, for example.