Title: Luxury Retailers Flock to India’s Rising Affluent Market in Southern Mumbai
Discover how southern Mumbai, India’s historical financial center, has become a magnet for luxury retailers seeking to tap into the country’s burgeoning affluence. In recent years, renowned brands like Hermes International, Christian Louboutin, and Sabyasachi Mukherjee have set up shop in this thriving district, despite soaring rental costs. This article explores why southern Mumbai has become a hotspot for luxury brands and what the future holds for India’s growing upper class.
The Surge of Wealth in India
With an estimated 1.66 million individuals in India expected to possess more than one million dollars in net worth by 2027, and a projected 60% growth in the $30 million-plus bracket from 2022 to 2027 (Knight Frank’s Wealth Report), India’s affluence is on the rise.
International Brands Take Notice
International luxury brands are increasingly turning their attention to India’s expanding wealth. A case in point is Dior, which recently selected Mumbai’s iconic Gateway of India as the backdrop for its debut runway show in India. The collection, featuring sequined dresses, traditional Indian needlework, and vibrant hues, aimed to resonate with local consumers and their purchasing power.
Soaring Luxury Rental Rates
Luxury rental rates have surged due to heightened demand and limited available properties. Karl Nagarwalla, from Nagarwalla Estates, a firm instrumental in assisting brands like Hermes and Louboutin in securing showrooms, reports monthly rents exceeding $6,044 to $7,250 for a 1,000-square-foot space.
Heritage Building Restoration
Many luxury brands are choosing to establish themselves in historic southern Mumbai heritage buildings, contributing to the gentrification of the area. For example, the Sabyasachi flagship store now resides in a Grade IIA heritage building dating back to 1913, meticulously restored in 2021 by Indian City Properties.
Investment Fuels Expansion
Sabyasachi’s growth has been propelled by support from Aditya Birla Fashion and Retail Ltd., which acquired a 51% stake in the brand in 2021. The Mumbai store reported robust sales and revenue growth, despite challenging market conditions.
Reliance Brands’ Pursuit of Luxury
Mukesh Ambani’s Reliance Brands Ltd. is also venturing into luxury, with investments in brands like MM Styles Ltd. and Ritu Kumar’s label. The conglomerate’s non-food business, encompassing fashion and lifestyle brands, achieved a remarkable 15% year-on-year revenue growth.
India’s expanding affluence is alluring luxury retailers, reshaping regions like southern Mumbai into vibrant hubs for premium fashion and lifestyle brands. As the market flourishes, intensified competition is paving the way for brands to prosper over the next decade.