- Reliance is planning to open a luxury shopping mall in Mumbai
- The agreements show that brands LVMH and Kering are preparing to open stores
- Relying on rent collection plus revenue share of 4-12%
- Store openings mark the brands’ retail expansion in India
LVMH and Gucci expand into India with new outlets at the luxury Reliance Mall
Reliance’s Jio World Plaza building is pictured in Mumbai, India on February 28, 2022. Photo taken on February 28, 2022. REUTERS/Francis Mascarenhas/File image credits licensed
MUMBAI (Reuters) – Gucci, Cartier and Louis Vuitton are among the brands that have signed leases for stores in Indian tycoon Mukesh Ambani’s new mall in Mumbai, as luxury goods companies and Reliance Industries seek to capitalize on strong economic growth and a rapid rise in… Oil prices. Number of millionaires.
Jio World Plaza, which an industry source said is likely to open this year, is located within Reliance’s $1 billion commercial and cultural hub in Mumbai’s commercial district.
Reliance has not yet revealed details about the tenants, but lease documents provided by real estate analytics firm CRE Matrix showed that Burberry Group (BRBY.L) as well as several brands owned by LVMH (LVMH.PA), Kering (PRTP.PA) and Richemont (CFR.S) agreed to lease stores in the mall, and they also agreed to share between 4% and 12% of their net monthly revenues with Reliance.
Brands include jewelery companies Cartier and Bulgari, fashion houses Louis Vuitton, Dior and Gucci, watch brand IWC Schaffhausen and luxury luggage maker Rimowa, which will open its first outlet in India.
Reliance, Burberry, LVMH, Kering and Richemont did not respond to a request for comment.
“Luxury brands have always struggled to acquire quality retail space in India, and many have had to open their first outlets in luxury hotels,” said Anuj Kejriwal, CEO, Anarock Retail India. “These brands are now looking for a meaningful presence.”
At approximately 700 square meters (7,500 square feet), Louis Vuitton’s Jio World Plaza will be the most spacious of the four outlets in India. The Cartier store will be the second in the country, and the Dior store will be the third.
To ensure the mall retains its luxury appeal, some lease agreements such as Dior’s include a clause entitling it to reduce the rent by 25% if at least four of the 10 luxury brands including Gucci, Cartier, Bulgari and Tiffany do not open their own brands. Sales outlets in the mall within six months.
India has a population of 1.4 billion, the largest in the world, and a per capita income of just $2,300, but the country is also home to more than 800,000 millionaires who spend their money on everything from luxury homes to expensive SUVs.
Real estate consultancy Knight Frank estimates that India will have 1.4 million millionaires by 2026, 77% more than in 2021, as the economy continues to strengthen.
The growth in India, where Euromonitor estimates the personal luxury market will expand by roughly 12% annually in 2022-26 to nearly $5 billion, contrasts with a slowing economy in China, whose appetite for luxury goods has driven sales growth at luxury companies. For years. .
Euromonitor data shows that China’s personal luxury products market will grow at a rate of 11.5% in the four years to 2026 to reach $107 billion.
(This story has been reworded to remove the extraneous word “any” in paragraph 3)
(Reporting by Dhawani Pandya and Aditya Kalra – Prepared by Muhammad for the Arabic Bulletin) Editing by Miral Fahmy
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