Luxury watch, jewellery, fashion and apparel brands leased 600,000 square feet space in 2023, up from 230,000 sq ft in the previous year and the highest in six years, amid robust demand in the premium consumer segment.
According to CBRE data, the share of luxury brands in overall leasing surged to 9% in 2023 from 3% in 2018. “Growing consumer aspiration for global brands and an increase in the share of disposable income have been two of the key reasons why luxury brands are expanding their presence. Moreover, a growing share of organised retail spaces in major cities has encouraged brands to establish a footprint in key cities,” said Anshuman Magazine, chairman, India, Southeast Asia, Middle East & Africa, CBRE. “The luxury sector, which saw more than two times annual increase in 2023, shows a promising trend with the entry and expansion of international brands.”
Canadian lingerie retailer La Vie en Rose made its debut in India in partnership with Apparel Group India and launched its first store in Noida in July 2023 and later expanded to Pune and Bengaluru.
Similarly, Rimowa, a German luxury luggage brand, entered India through its partnership with Reliance Brands and opened its first store in Mumbai.
“We are also in the final stages of opening a bridge-to-luxury mall as there is demand for space from these brands. Aspirational class of India is driving the consumption and more retail space is needed as brands continue to expand,” said Harsh Bansal, co-founder, Unity group, which operates six malls in Delhi.
Other notable expansions by international players include French fashion and apparel brand Bugatti Fashion and the American furniture brand West Elm opening their stores in Pune and American lingerie brand Victoria’s Secret opening stores in Hyderabad and Pune.
Global luxury brands are also bullish on the Indian market. Recently, Aditya Birla Fashion Retail partnered with French luxury department store chain Galeries Lafayette.
The retail sector recorded an all-time high leasing in 2023, taking up 7.1 million sq ft across eight cities, an increase of 47% year-on-year despite large retailers slowing down on store expansion.
According to CBRE, about two dozen international brands entered India and expansion by global brands already present in the country fuelled the demand.
Retail leasing by international brands accounted for almost 25% in 2023 compared to 14% in the previous year.
As per a Bain & Co report, India’s luxury market is expected to reach $85-90 billion by 2030, propelled by increasing ultra-high-net-worth individuals (with net assets of at least $30 million), growing entrepreneurship, a strong middle class, greater penetration of e-commerce and demand from tier-2 and tier-3 cities.
