New Delhi: Amid India's burgeoning luxury market, Burgundy Brand Collective, known for partnering high-end brands like Royce chocolates and Onitsuka Tiger, is looking to expand its store presence in the country.
The company plans to invest ₹50 crore over the next decade, aiming to build on its current presence of 32 stores across nine cities and partnerships with eight international brands.
This expansion reflects a marked change in India's luxury landscape, noted by co-founders Samir Gadhok and Avani Raheja.
India's rapidly growing luxury goods market is projected to hit $8.5 billion in 2023, a significant increase from 2021, as per Euromonitor International.
The year 2022 marked a strong year for Burgundy post-pandemic, and the company anticipates a 30-35% growth by the end of this fiscal year, as per the founders.
Accelerating its expansion, it now opens seven stores annually, a significant increase from the pre-pandemic rate. The company is also venturing into secondary markets like Kolkata.
Gadhok said rent increases in high streets and malls, now charging 1.5 times more post-pandemic, reflect the growing allure of the Indian market for global luxury brands. Burgundy is in discussions to introduce two new luxury brands to India, further diversifying its portfolio. One of these will be in the fashion space.
Burgundy's homegrown brand Provenance, launched in 2018, specializes in fine foods and gifts. The company also represents Papabubble, a Spanish gourmet candy brand, and French-furniture brand Ligne Roset.
“Royce is now a 10 year old brand and we are seeing the business grow 30% year-on-year. We have seen many businesses have come in the chocolate category but we are continuing to do well,” he said. Onitsuka Tiger is also doing well for the business.
The company forecasts a shift in consumer preferences from bridge-to-luxury to pure luxury brands, anticipating closing the year with a ₹120 crore topline for FY24, up from last year's ₹90 crore. However, there has been a slight decline in digital platform demand, stabilizing at 20%, amid rising online advertisement costs impacting sales across categories.
