Luxury market in India to grow by 15%-25% in the next seven years: Barclays
Despite its relatively small contribution to global luxury sales, estimated at around 2 per cent, India's luxury market is projected to grow at an annual growth rate of 15 to 25 per cent over the next seven years. The market is projected to be worth €23 billion-€38 billion during this period. This surge is fueled by the expanding middle class in the country.
Barclays highlights that major cities like Mumbai, New Delhi, and Bengaluru are key centers for India's affluent population, hosting 90 per cent of the nation's luxury retail infrastructure. Notably, New Delhi, the capital, holds a significant presence of old-money families and houses the first Louis Vuitton store in India, established in 2003.
Mumbai boasts Jio World Plaza, the country's largest luxury shopping mall, covering 750,000 sq ft and featuring prominent brands like Louis Vuitton, Dior, Gucci, and Cartier. Spearheaded by Isha Ambani, daughter of Mukesh Ambani, the project is managed by Reliance Industries, which is reportedly involved in a potential $3 billion acquisition of Neiman Marcus Group.
Known as India's tech and IT hub, Bengaluru is emerging as a prominent luxury destination. Its notable retail project, Mall of Asia, opened in October and signals the city's growing luxury scene.
Looking ahead, Galeries Lafayette, the French department store, plans to collaborate with developer Aditya Birla to establish a presence in Mumbai and New Delhi. Additionally, Christian Louboutin recently formed a joint venture with Aditya Birla to enter the Indian market.
In the realm of hard luxury, luxury watches are experiencing remarkable growth, serving as status symbols for the burgeoning tech millionaires. Ethos, a leading Indian watch retailer, forecasts the premium and luxury watch segment to grow at a 12.5 per cent annual rate, reaching €1.4 billion by 2025.
Based on feedback from mall operators, Barclays identifies Gucci as a brand with significant growth potential in the Indian market. They also note positive sentiments toward Saint Laurent, Balenciaga, and other brands like Louis Vuitton, Chanel, and Dior.
