Global luxury brands partner big Indian retailers to tap high net worth buyers
08 September 2023, Mumbai
In 2023, what do icons like Galeries Lafayette, Michael Kors, Tiffany, Valentino, Laderach, Keune, and Balenciaga amongst others have in common?
They are out to woo Indians in India. With the new status of the fifth largest economy with the possibility of becoming the fourth soon, China’s luxury market tightening purse strings, luxury brands acknowledge the success story that is India and they are eager for their share of the pie.
Ride With Confidence:
In the words of Elias Laderach, CEO of the largest Swiss chocolate retailer, Laderach is confident of India’s upscale consumers and their eagerness for luxury experiences, which makes for a huge opportunity for international brands that are capable of delivery.
This is not optimism but based on hard facts – a Credit Suisse Global Wealth Report said the number of millionaires in India was estimated to double from 796,000 in 2021 to 1.6 million in 2026. Consultants Bain & Company has predicted Indian luxury market will grow 3.5 times to be valued at $200 billion by 2030.
Bespoke catering to Indian taste
International luxury brands have stepped up their game to offer a niche portfolio of India-specific collections to woo the super-rich as is evident from various targeted collections popping up. The increasing importance of the booming luxury market in India for global brands like Louis Vuitton, Franck Muller, Emporio Armani, Bvlgari, and AVI-8, among others, is visible across categories.
Louis Vuitton’s limited edition capsule collection of footwear priced at Rs 75,000-1.20 lakh, for the wedding season, offered a sneak peek into the mind of India’s fashion aficionado. To cash on it, the company introduced a collection of fuchsia-coloured shoes to pay homage to Rajasthan’s royal family.
Swiss luxury watchmaker Franck Muller launched 150 pieces of a first-of-its-kind limited edition watch collection for India. While 100 pieces of the watch are designed in steel and gold, the rest are part of a rose-gold edition.
India's Retail Scenario Transformed
For the third year in a row, Italian eyewear conglomerate Luxottica launched an India-exclusive festive, limited edition sunglass range for its brands Emporio Armani, Michael Kors and Versace. Its pilot project was done in 2020, for eyewear brands Emporio Armani and Michael Kors.
What’s more, in anticipation of the upcoming festive season, over a dozen luxury brands are entering India.
For example, French luxury retailer Galeries Lafayette is entering India through a partnership with the Aditya Birla Fashion Retail, while Spanish luxury fashion house Balenciaga SA is planning to open stores in collaboration with Reliance Brands. Swiss luxury multi-brand watch and jewelry boutique TimeVallee is looking for an India debut.
Lucrative for luxury
So what’s catalyzing luxe growth in India? First, after two years of lockdown, Indian luxury lovers couldn’t get enough when the market opened. Yes, while the world has been affected by inflation, luxury, time and again has proven to be inflation-proof globally.
As Indians emerge from the woodwork and travel more, they are more exposed to luxury brands and experiences that they would like in their country to buy at will.
Disposable incomes are also triggering the purchase of luxury experiences and the Indians are busy catching up. But will this buoyancy be sustainable? Probably yes, as per the Credit Suisse report, Indian millionaires are growing rapidly.
Global luxury brands handhold local partners
Luxury brands are busy establishing partnerships with India’s retail giants to leverage their customer base and physical network that goes beyond India’s metros and penetrate segments of markets that their local partners are well versed with.
Reliance Brands is trying to establish its leadership in the Indian luxury market and scaling up its partnerships with Valentino, and Tiffany as the festive season approaches.
Who's who; From Hamleys, the upscale toy store, and Brooke Brothers to Balenciaga, Paul Smith, and Jimmy Choo, Reliance Retail has a massive collection of luxury and bridge brands. Aditya Birla Fashion Retail's possibly biggest partnership will be Galeries Lafayette which itself will house a portfolio of over 200 luxury brands.
