Gucci, Cartier, and Louis Vuitton are among the prestigious brands that have inked lease agreements for retail spaces within the new Mumbai mall spearheaded by Indian magnate Mukesh Ambani. This strategic move comes as luxury enterprises and Reliance Industries capitalize on India's robust economic growth and the rapid surge in the number of millionaires within the nation.
The illustrious Jio World Plaza, believed by industry insiders to open its doors this year, finds its location nestled within Reliance's expansive $1 billion business and cultural complex, strategically positioned in the heart of Mumbai's bustling business district.
While Reliance has yet to unveil the comprehensive list of tenants, lease contracts made available through real estate analytics firm CRE Matrix reveal that Burberry Group, along with several brands under the umbrellas of LVMH, Kering, and Richemont, have committed to establishing boutiques within the mall. Additionally, these luxury brands have agreed to share a portion of their monthly net revenue, ranging from 4% to 12%, with Reliance as part of their lease agreements.
Requests for comments from Reliance, Burberry, LVMH, Kering, and Richemont went unanswered at the time of this report.
Anuj Kejriwal, CEO of India's Anarock Retail, noted, "Luxury brands have always struggled for quality retail spaces in India and many were forced to open their first outlets in luxury hotels. These brands are now looking for a meaningful presence."
Among these premium brands, Louis Vuitton's boutique within Jio World Plaza is set to be the most expansive of its four stores in India, spanning almost 700 square meters (7,500 square feet). Cartier's store, on the other hand, will mark its second establishment in the country, while Dior's presence will expand to its third location.
To ensure the mall maintains its aura of luxury, certain lease agreements, such as that of Dior, incorporate a clause that grants a 25% reduction in rent if, within six months, at least four of ten luxury brands—including names like Gucci, Cartier, Bulgari, and Tiffany—fail to open their own boutiques within the mall.
Despite India's vast population of 1.4 billion, with a per capita income of just $2,300, the country boasts more than 800,000 dollar millionaires who exhibit a penchant for extravagant expenditures, ranging from opulent residences to high-end SUVs.
According to real estate consultancy firm Knight Frank, India is projected to witness a surge in millionaires, reaching 1.4 million by 2026, marking a 77% increase from 2021, as the nation's economy continues its upward trajectory.
This noteworthy growth in India stands in stark contrast to the economic slowdown experienced in China, where the demand for luxury goods has been a driving force behind the sales growth of luxury brands over the years.
According to Euromonitor's data, China's personal luxury market is expected to witness an average growth rate of 11.5% in the four years leading up to 2026, reaching a value of $107 billion. In comparison, the personal luxury market in India is forecasted to expand by nearly 12% annually between 2022 and 2026, approaching the $5 billion mark, as reported by Euromonitor.
Â
