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Business News/ Industry / Retail/  Luxury brand leases in India surge 170% in 2023: Report

Luxury brand leases in India surge 170% in 2023: Report

  • The uptick in leasing activity was fueled by the entry and expansion of global luxury fashion, watch and jewellery brands

The opening of the Jio World Plaza mall in Mumbai by Reliance Industries Ltd last November added a new luxury shopping destination in the city (Photo by Vijay Bate/HT Photo)

New Delhi: Luxury brands significantly expanded their footprint in India in 2023, leasing over 600,000 square feet of retail space across various formats, a 170% jump from the previous year, according to a report by real estate consultant CBRE South Asia and the PHD Chamber of Commerce and Industry.

Luxury brand leases in malls zoomed 300% to 240,000 square feet. High street store formats also grew, with a 100% increase in leasing to 300,000 square feet, while standalone store leases jumped over 200% to 100,000 square feet.

High street locations comprised around 45% of the total luxury leasing in 2023, malls accounted for 40%, and standalone stores constituted the remaining 15%, the report said.

CBRE tracked leasing activity in eight cities – Delhi-NCR, Mumbai, Bangalore, Kolkata, Pune, Ahmedabad, Chennai, and Hyderabad.

This expansion reflects the growing appeal of India as a market for luxury brands, driven by the country's increasing class of aspirational consumers.

The uptick in leasing activity was fueled by the entry and expansion of global luxury fashion, watch and jewellery brands in different markets, according to the report.

The opening of the Jio World Plaza mall in Mumbai by Reliance Industries Ltd last November added a new luxury shopping destination in the city. The mall boasts brands such as Giorgio Armani Café, Pottery Barn Kids, Samsung Experience Centre, Valentino, Tory Burch, YSL, Versace, Tiffany, and Ladurée, among others.

The Delhi-NCR region leads in luxury brand concentration, hosting 80% of international luxury brands.

“Luxury malls in the Delhi-NCR region serve as a shopping haven for discerning customers across North India, while Mumbai attracts luxury shoppers from cities throughout Gujarat and Maharashtra. Bangalore effectively caters to the luxury needs of most major cities in the surrounding region, whereas Hyderabad boasts a sizable catchment area for potential luxury retail growth," it said.

Established luxury brands in India are not only entering new markets but also expanding in metros where their presence is limited. According to the report, these brands are also pursuing larger space in existing locations to cater to the increasing demand.

“The luxury sector, which saw a significant increase in leasing in 2023, shows a promising trend with the entry and expansion of international brands. This positive momentum is expected to continue, aligning with our anticipation for a similar trend in the years ahead," said Anshuman Magazine, chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE.

Luxury brands are aggressively chasing new avenues to attract both seasoned and aspiring luxury consumers. “As the demographics of these high-end shoppers continue to shift, brands are likely to recalibrate their strategies and expand their physical presence to capture a larger market share," Magazine added.

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ABOUT THE AUTHOR

Suneera Tandon

Suneera Tandon is a New Delhi based reporter covering consumer goods for Mint. Suneera reports on fast moving consumer goods makers, retailers as well as other consumer-facing businesses such as restaurants and malls. She is deeply interested in what consumers across urban and rural India buy, wear and eat. Suneera holds a masters degree in English Literature from the University of Delhi.
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