09 July 2024, Mumbai
Coinciding with the festive season, luxury brands are gearing up to launch new stores in India, signaling a potential boost for the industry following a two-month slowdown due to extreme summer heat and general elections.
In Delhi, brands such as Aquazzura (accessories and shoes), Diptyque (perfumes), and Golden Goose (menswear) are preparing to open stores. Clothing and accessoris brand Amiriwill hold a small popup in Delhi to test the market.
The luxury sector is expected to see a gradual increase in sales starting this month, reaching normal levels as the festive season approaches. AmitPande, Business Head - The Collective & International Brands, ABFRL, observes a sector recovery in June following the summer and general elections, with expectations of good growth around the festive season.
DLF Emporiowill soon launch a new zone for 'pret' or ready-to-wear collections from young Indian designers. PushaBector, Senior Executive Director, DLF Emporio highlights the broadening of luxury categories and the influx of millennial and Gen Z consumers discovering luxury through digital media.
While walk-ins are declining globally, online shopping is growing rapidly, and strong client relationships reduce dependence on walk-ins, notes Pande notes. Leather goods and accessories are less affected by the slowdown than clothing, with work-wear making a comeback while categories like sweatshirts and loungewear are tapering off, he points out.
Operator of around 40 stores across The Collective, Ralph Lauren, Hackett London, Simon Carter, Ted Baker, Fred Perry, and others, ABFRL plans to add five more stores in the coming months. In 2025, luxury department store Galeries Lafayette plans to expand in Mumbai and Delhi.
India's growing appetite for luxury goods and services is being driven by rising disposable incomes and the booming ultra-rich population. According to a Goldman Sachs Research report titled 'The Rise of Affluent India,' the affluent consumer cohort is expected to grow from 60 million in 2023 to 100 million by 2027. This shift has led global luxury brands to target India, especially after luxury consumption slumped in China during the pandemic. Malls dedicated to the wealthy, like Reliance's Jio mall in Mumbai, have emerged, and brands like Brioni and Christian Louboutin have expanded their presence in India.
