In Short:
Luxury brands expanded in India in 2023, leasing over 600,000 sq ft retail space, a 170% increase from the previous year. Leases in malls grew 300% to 240,000 sq ft, high street stores increased 100% to 300,000 sq ft, and standalone stores jumped 200% to 100,000 sq ft. The trend reflects India’s appeal for luxury brands fueled by aspirational consumers.
Celebrating the Luxury Boom in India
In an exciting turn of events, luxury brands have made a splash in India in 2023, claiming over 600,000 square feet of retail space across different formats. This marks a whopping 170% increase from the previous year, showcasing a significant jump in their presence in the country.
Breaking Down the Numbers
Zooming into the details, luxury brand leases in malls rose by an impressive 300% to reach 240,000 square feet. High street store formats also saw a remarkable growth with a 100% increase in leasing to 300,000 square feet. Standalone store leases were not far behind, jumping over 200% to 100,000 square feet.
Notably, high street locations made up around 45% of the total luxury leasing in 2023, malls accounted for 40%, and standalone stores constituted the remaining 15%, as per the report by real estate consultant CBRE South Asia and the PHD Chamber of Commerce and Industry.
Expanding Footprints
The fervor around luxury brands in India propels from the growing appeal of the nation as a market for these premium labels, spurred by the rise of aspirational consumers. The entry and expansion of global luxury fashion, watch, and jewelry brands across different markets have fueled this leasing boom, creating an exciting landscape for shoppers.
New Luxury Destinations
The recent opening of the Jio World Plaza mall in Mumbai by Reliance Industries Ltd has introduced a chic new luxury shopping hub in the city. Boasting brands like Giorgio Armani Café, Valentino, YSL, and more, this mall has quickly become a hotspot for luxury enthusiasts.
Regional Focus
The Delhi-NCR region emerges as the hub of luxury brand concentration, hosting a whopping 80% of international luxury brands in India. Mumbai attracts luxury shoppers from cities across Gujarat and Maharashtra. Bangalore, on the other hand, caters effectively to the luxury needs of surrounding regions, and Hyderabad presents a prime catchment area for potential luxury retail growth.
Looking to the Future
Established luxury brands in India are not just venturing into new markets but also expanding their presence in metros with limited reach. The report highlights their pursuit of larger spaces in existing locations to meet the growing demand among consumers.
Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, expressed optimism for the luxury sector’s future, predicting a continued positive trend in the years ahead. Luxury brands are actively seeking new avenues to attract a diverse range of luxury consumers, adapting their strategies to capture a larger market share.
It’s an exciting time for the luxury landscape in India, with a promising trajectory for growth and innovation in the luxury retail sector.
