Luxury brands like Gucci, Cartier, and Louis Vuitton have inked leases for stores in the new Mumbai mall created by Indian tycoon Mukesh Ambani, capitalising on robust economic growth and a surge in the number of millionaires. The Jio World Plaza, set to open this year within Reliance Industries’ USD 1 billion business and cultural hub in Mumbai’s business district, has attracted these prestigious brands.
While Reliance has not officially disclosed its tenants, lease documents obtained from real estate analytics firm CRE Matrix reveal that brands under LVMH, Kering, Richemont, and Burberry Group have committed to renting space in the mall. These agreements also include revenue-sharing clauses, entitling Reliance to between 4 per cent and 12 per cent of their monthly net revenue.
The roster of brands comprises illustrious names like Cartier and Bulgari in the jewellery sector, fashion icons Louis Vuitton, Dior and Gucci, renowned watchmaker IWC Schaffhausen and luxury luggage manufacturer Rimowa, which will be making its debut in India.
Despite multiple requests for comments, Reliance, Burberry, LVMH, Kering, and Richemont have remained tight-lipped about the development. Speaking to a media house, Anuj Kejriwal, CEO of Anarock Retail in India, said luxury brands have long grappled with securing quality retail spaces in the country, often resorting to opening their first outlets in luxury hotels. Now, these brands are actively seeking a more significant presence in dedicated luxury spaces.
The Louis Vuitton store in the Jio World Plaza, spanning nearly 700 square meters (7,500 square feet), will be the brand’s most spacious outlet among its four in India. Cartier’s store will be its second in the country, while Dior’s presence will expand to three locations.
To maintain the mall’s luxury aura, some lease agreements, like Dior’s, include a clause offering a 25 per cent rent reduction if at least four of 10 specified luxury brands, including Gucci, Cartier, Bulgari, and Tiffany, fail to open their outlets within six months.
India, with its massive population of 1.4 billion, has a per capita income of approximately USD 2,300, but it is also home to over 800,000 dollar millionaires who are increasingly indulging in luxury purchases, from upscale residences to high-end SUVs, reported the media house. Real estate experts at Knight Frank estimate that India will have 1.4 million millionaires by 2026, a 77 per cent increase from 2021, fueled by the country’s ongoing economic growth.
This growth in India stands in contrast to China, where the appetite for luxury goods has driven sales growth for years, but the economy has recently slowed down. According to Euromonitor data, India’s personal luxury market is expected to expand at an annual rate of nearly 12 per cent between 2022 and 2026, reaching almost USD 5 billion. In comparison, China’s personal luxury market is projected to grow at an average of 11.5 per cent over the same period, reaching USD 107 billion.
