Mumbai: Reliance to Launch Luxury Mall for India’s Wealthiest Shoppers | India is blooming
Mumbai: Eyeing growing market for Western luxury brands in India, billionaire Mukesh Ambani-led Reliance plans to open a mega mall that will be a shopper’s paradise for wealthy Indians, Reuters reported.
According to the report, India’s luxury market is expected to nearly double to nearly $5 billion within five years, according to Euromonitor estimates.
Jio World Plaza, is likely to be the centerpiece of Reliance’s plan. Expensive bags or shoes will be available from major brands.
Three people with direct knowledge of Reliance’s strategy said the push was aimed at leveraging partnerships with overseas brands and outpacing retail rivals in luxury offerings, according to the Reuters report.
According to people familiar with the matter, the total cost of developing the Jio World Center, where the luxury mall will be housed, is more than $1 billion, according to the report.
The market value of this massive investment is $238 billion. Mukesh Ambani’s daughter Isha, 30, is closely involved in directing strategy.
A floor plan in a Reliance document reviewed by Reuters shows around 30 brands confirmed in recent weeks for the mall’s upper ground floor, including Louis Vuitton, Tiffany and LVMH’s Dior. Also present will be Gucci, Balenciaga and Bottega Veneta, rivals of LVMH, Kering, as well as Versace, Cartier and Hermès de Richemont.
At 7,376 square feet, Louis Vuitton’s outlet in the mall will be the largest in the country, according to the document.
Four Indian brands, in which Reliance has acquired a stake in recent months with plans to expand globally, will be the only national names on the mall’s luxury floor, according to the Reuters report.
Pankaj Renjhen of ANAROCK Property Consultants said India’s luxury market is extremely small and most foreign brands prefer to partner with Reliance to control costs and benefit from its understanding of the country’s retail market, according to The report.
Euromonitor estimates that the size of the personal luxury market in India was $2.6 billion last year, but is expected to grow 12% annually to reach $4.7 billion by 2026, the report said.
Louis Vuitton has around 60 outlets in China and Versace has 40.
But according to Hurun India Wealth Report, the number of millionaire households in the country increased by 11% in 2021 compared to the previous year, and the favorite brands in this market are Gucci, Louis Vuitton and Burberry.
The Mumbai mall is the Ambanis’ first attempt to bring in expensive, non-partner luxury brands.