In a move indicative of the growing luxury market in India, iconic brands such as Gucci, Cartier, and Louis Vuitton have secured leases for stores in Mumbai’s upcoming Jio World Plaza. This new mall, located within Mukesh Ambani’s $1 billion business and cultural hub, aims to tap into the country’s strong economic growth and the burgeoning number of millionaires.
The Jio World Plaza
Set to open its doors this year, the Jio World Plaza is poised to be a prominent luxury shopping destination in Mumbai’s bustling business district. While Reliance Industries, the developer behind the project, has yet to unveil specific details about the tenants, lease documents from real estate analytics firm CRE Matrix reveal an impressive roster of brands. Among them are Burberry Group, as well as several brands owned by luxury conglomerates LVMH, Kering, and Richemont.
Luxury Brands Capitalize on India’s Growth
Luxury brands have historically grappled with the challenge of finding quality retail spaces in India. Many had to establish their initial outlets within luxury hotels. However, the tide is turning, with these brands now seeking a more significant presence in the country’s thriving luxury market.
Louis Vuitton’s store at Jio World Plaza will span almost 700 square meters (7,500 square feet), making it the most spacious among the brand’s four outlets in India. Cartier will open its second store in the country, while Dior will establish its third. These brands are making substantial investments to capture the attention of India’s affluent consumers.
Ensuring Luxury Appeal
To maintain its luxurious allure, the mall’s lease agreements include clauses to secure the presence of other prestigious brands. For instance, Dior’s agreement allows for a 25% rent reduction if at least four of ten luxury brands, including Gucci, Cartier, Bulgari, and Tiffany, do not open outlets in the mall within six months.
India’s Booming Luxury Market
Despite India’s per capita income of just $2,300, it boasts over 800,000 dollar millionaires who are increasingly indulging in luxury purchases, from high-end homes to luxury SUVs. Real estate consultants Knight Frank predict that India will have 1.4 million millionaires by 2026, a 77% increase from 2021, driven by the country’s strengthening economy.
India’s personal luxury market is expected to grow by nearly 12% annually from 2022 to 2026, reaching nearly $5 billion, according to Euromonitor. This growth contrasts with China’s slowing economy, which had been a driving force behind the luxury market for years. China’s personal luxury market is forecasted to grow by an average of 11.5% in the four years leading to 2026, reaching $107 billion.
In conclusion, India’s luxury market is on a robust trajectory, attracting renowned brands to invest in prime retail spaces. As the country’s economy continues to flourish and its millionaire population expands, India is cementing its position as a key player in the global luxury landscape.