Capitalising on robust luxury retail sales trends in India, established luxury brands are expanding their presence in major metropolitan cities and strategically entering new markets. According to a report by real estate consultant CBRE South Asia and the PHD Chamber of Commerce and Industry, luxury brands significantly expanded their footprint in India in 2023, leasing over 600,000 square feet of retail space across various formats— up from 230,000 square feet the year before, marking the highest leasing in six years.
This marked a 162% jump from the previous year. This surge in leasing has been accompanied by the entry and expansion of various international luxury fashion, watch and accessories brands in newly completed malls, along with the opening of several jewellery stores by local retailers across different locations.
The report noted that the global luxury brands are actively establishing flagship stores and boutiques to enhance the accessibility and availability of luxury products in the market. Prominent brands such as Tiffany & Co, Valentino, Balenciaga, and RIMOWA, among others, have established their presence in India over the last few years.
While multiple international luxury fashion brands, including Brioni, Roberto Cavalli and Dunhill are expected to launch in 2024, the French luxury company SMCP, in partnership with Reliance Brands, also plans to launch two luxury brands Sandro and Maje this year. Additionally, Galeries Lafayette, a leading shopping centre based in Paris, is also planning to enter India by opening two stores in Mumbai and Delhi-NCR in collaboration with Aditya Birla Fashion and Retail.
According to the report, luxury brand leases in malls increased 300% to 240,000 square feet, high street store formats grew with a 100% increase in leasing to 300,000 square feet, and standalone store leases jumped over 200% to 100,000 square feet. The high street locations comprised around 45% of the total luxury leasing in 2023, whereas malls accounted for 40%, and standalone stores constituted the remaining 15%.
To accommodate their growing offerings, the luxury brands are pursuing larger space take-ups in existing locations and to cater to the increasing demand, they are now looking beyond the top-tier metro cities and adopting an aggressive expansion approach by opening stores in cities including Hyderabad and Ahmedabad among others.
CBRE tracked leasing activity in eight cities – Delhi-NCR, Mumbai, Bangalore, Kolkata, Pune, Ahmedabad, Chennai, and Hyderabad. The Delhi-NCR region leads in luxury brand concentration, hosting 80% of international luxury brands, it noted.
India’s luxury market is anticipated to soar to $85-$90 billion by 2030, according to a report by Bain & Co. This growth is driven by the rising number of ultra-high-net-worth individuals, expanding entrepreneurship, increased e-commerce penetrations and a robust middle class.