Retail leasing by luxury brands rises to six-year high in 2023: CBRE
07 February 2024, Mumbai
Biggest propellor
Leasing space by luxury watch, jewelry, fashion and apparel brands increased to the highest in six years to 600,000 sq ft space in 2023 from 230,000 sq ft in the previous year, amid robust demand in the premium consumer segment.
According to CBRE data, the share of luxury brands in overall leasing surged to 9 per cent in 2023 from 3 percent in 2018. Rising consumer demand for global brands alongwith an increase in their disposal incomes spurred this growth, says
Quotes
Anshuman Magazine, Chairman-India, Southeast Asia, Middle East & Africa, CBRE. "The luxury sector shows a promising trend with the entry and expansion of international brands, he adds.
In July 2023, Canadian lingerie retailer La Vein en Rose launched its first India store in Noida in partnership with Apparel Group India. Since then, the brand has expanded to Pune and Bengaluru.
Outlines
Similarly, German luxury luggage brand, Rimowa, opened its first store in Mumbai in Partnership with Reliance Brands.
Delhi-based Unity Group is opening a bridge-to-luxury mall in the city as demand for space from these brands is growing, says Harsh Bansal, Co-founder.
Other international players expanding in India include French fashion and apparel brand Bugatti Fashion and the American furniture brand West Elm, who are opening their stores in Pune, and American lingerie brand Victoria's Secret which is opening stores in Hyderabad and Pune.
Nuanced data-points
Retail leasing by international brands increased by 47 per cent Y-o-Y to 7.1 million sq ft across eight cities in 2023, notes CBRE. It accounted for almost 25 per cent in 2023 compared to 14 per cent in the previous year.
India’s luxury retail market is expected to $85-90 billion by 2030, as per a Bain & Co report. This growth will mostly be propelled by increasing ultra-high-net-worth individuals, growing entrepreneurship, a strong middle class, greater penetration of e-commerce and demand from Tier-II and Tier-III cities.
