India's luxury retail takes a quantum leap
brands
across major cities.
Leasing by luxury brands hit 180,000 square feet during the quarter-as both global and domestic players race to capture a growing share of India's
premium
retail market, according to data real estate consultancy CBRE shared exclusively with ET.
"As consumer demographics evolve, luxury brands are recalibrating strategies and expanding their physical footprint to capture a broader audience," said Anshuman Magazine, chairman and CEO - India, Southeast Asia, Middle East and Africa of CBRE. "While legacy players may take a cautious approach focused on metro
markets
, newer brands continue to view India as a high-potential destination."
He said India is projected to remain among the top five luxury markets in Asia-Pacific.
Several high-end international brands are entering the country. German luxury clockmaker Qlocktwo made its debut in Bengaluru, while French childrenswear label Jacadi Paris and women's fashion brand Maje opened stores in Mumbai.
Beyond traditional luxury, Spanish fast-fashion brand Bershka entered Mumbai and Swiss premium lifestyle brand Nespresso debuted in Delhi, reflecting growing appetite across segments.
The high demand is pushing up rentals.
"Sales have increased substantially, enabling us to raise rentals at our malls," said Pushpa Bector, senior executive director and
business
head at DLF Retail. Brands in the
bridge-to-luxury segment
, particularly in beauty and accessories, are aggressively expanding into malls where they previously lacked a presence."
She said DLF Retail is developing a dedicated home and lifestyle luxury zone at its The Chanakya luxury mall in Delhi, which will be a first-of-its-kind space in India.
Amit Pande, business head for The Collective and international brands at
Aditya Birla Fashion and Retail
, said multiple brands are showing interest in expanding in India. "A brand like Vivienne Westwood held its first ever fashion show in India this month. There is definitely interest and the overall trajectory looks positive," he added.
Sanskriti Gupta, spokesperson for luxury chocolate brand Laderach in India, said the interest from international players, coupled with the strong performance of key retail categories such as fashion, beauty, and accessories, is fuelling the demand for prime retail spaces.
Swiss luxury watchmaker Breitling is expanding its presence in the country, buoyed by the strong performance of its existing four boutiques and increasing consumption of luxury items. The brand plans to more than double its footprint to ten boutiques over the next 18 months.
"We have established 25 points of sale across tier-1 and tier-2 cities," said Pradeep Bhanot, managing director of Breitling India. "India's top eight metros account for nearly 30 per cent of the country's luxury consumption, but we believe the real opportunity lies in going beyond these markets."
One of the major reasons behind the expansion plans of luxury brands is the growing number of high-income households - with income of USD 40,000 or more - which is expected to double from 15 million in 2022 to 30 million in 2030.
Bain & Company predicts India's luxury market to grow significantly to potentially reach USD 85-90 billion by 2030, a 3.5-fold increase.
There has been a noticeable growth in retail presence over the past year, said Sanjay Mishra, director-India, FM International Watches & Jewellery (Franck Muller).
"Over the past year, we have strengthened our presence in the Indian luxury watch market as demand for high end timepieces continues to rise," he said. "We currently operate through 10 points of sale and two exclusive boutiques across key Indian markets. We plan to expand further by adding two more boutiques by 2026."
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