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Luxury Brands Rent 600,000 Square Feet of Space in 2023: Highest Leasing in Six Years | India Business News
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Luxury brands market surges: In 2023, luxury brands rented 600,000 square feet of space, up from 230,000 square feet the year before, marking the highest leasing in six years due to strong demand from premium consumers.
The data quoted by ET from CBRE reveals a notable shift, with luxury brands commanding a 9% share of overall leasing activity in 2023, a leap from the 3% recorded in 2018.
Anshuman Magazine, Chairman of CBRE for India, Southeast Asia, Middle East & Africa, explained why luxury brands are expanding. He mentioned that increasing consumer desire for global brands and higher disposable incomes are driving this growth. He also noted that the availability of organised retail spaces in major cities is prompting brands to enter key urban areas. Magazine highlighted the promising trend in the luxury sector, which saw more than double growth in 2023, mainly due to the entry and expansion of international brands.
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In July 2023, Canadian lingerie retailer La Vie en Rose entered the Indian market through a partnership with Apparel Group India, opening its first store in Noida. It subsequently expanded its presence to Pune and Bengaluru.
In a similar fashion, Rimowa, a luxury luggage brand from Germany, entered the Indian market by partnering with Reliance Brands and inaugurated its first store in Mumbai.
Harsh Bansal, co-founder of Unity Group, which oversees six malls in Delhi, emphasises the need for retail space due to the aspirations of Indian consumers. He discusses plans to launch a bridge-to-luxury mall to support the expanding presence of luxury brands, underscoring the significant role played by Indian consumers in driving consumption.
Additionally, notable expansions by international players include Bugatti Fashion, a French fashion and apparel brand, and West Elm, an American furniture brand, setting up stores in Pune. Victoria’s Secret, the American lingerie giant, also expanded its footprint by opening stores in Hyderabad and Pune.
Global luxury brands are showing confidence in the Indian market. For instance, Aditya Birla Fashion Retail recently formed a partnership with the renowned French luxury department store chain Galeries Lafayette.
In 2023, the retail sector reached a record-high leasing of 7.1 million square feet across eight cities, marking a 47% year-on-year increase, even as large retailers reduced their pace of store expansion.
CBRE reports that approximately two dozen international brands entered India, while expansion efforts by existing global brands in the country further fueled the demand.
Retail leasing by international brands accounted for nearly 25% in 2023, a significant increase from 14% in the previous year.
According to a report by Bain & Co, India’s luxury market is anticipated to soar to $85-90 billion by 2030. This growth trajectory is driven by the rising number of ultra-high-net-worth individuals, expanding entrepreneurship, a robust middle class, increased e-commerce penetration, and heightened demand from tier-2 and tier-3 cities.
The data quoted by ET from CBRE reveals a notable shift, with luxury brands commanding a 9% share of overall leasing activity in 2023, a leap from the 3% recorded in 2018.
Anshuman Magazine, Chairman of CBRE for India, Southeast Asia, Middle East & Africa, explained why luxury brands are expanding. He mentioned that increasing consumer desire for global brands and higher disposable incomes are driving this growth. He also noted that the availability of organised retail spaces in major cities is prompting brands to enter key urban areas. Magazine highlighted the promising trend in the luxury sector, which saw more than double growth in 2023, mainly due to the entry and expansion of international brands.
ALSO READ | ‘Make in India’ boost! Airbus awards contract to Dynamatic Technologies for manufacturing A220 aircraft doors
In July 2023, Canadian lingerie retailer La Vie en Rose entered the Indian market through a partnership with Apparel Group India, opening its first store in Noida. It subsequently expanded its presence to Pune and Bengaluru.
In a similar fashion, Rimowa, a luxury luggage brand from Germany, entered the Indian market by partnering with Reliance Brands and inaugurated its first store in Mumbai.
Harsh Bansal, co-founder of Unity Group, which oversees six malls in Delhi, emphasises the need for retail space due to the aspirations of Indian consumers. He discusses plans to launch a bridge-to-luxury mall to support the expanding presence of luxury brands, underscoring the significant role played by Indian consumers in driving consumption.
Additionally, notable expansions by international players include Bugatti Fashion, a French fashion and apparel brand, and West Elm, an American furniture brand, setting up stores in Pune. Victoria’s Secret, the American lingerie giant, also expanded its footprint by opening stores in Hyderabad and Pune.
Global luxury brands are showing confidence in the Indian market. For instance, Aditya Birla Fashion Retail recently formed a partnership with the renowned French luxury department store chain Galeries Lafayette.
In 2023, the retail sector reached a record-high leasing of 7.1 million square feet across eight cities, marking a 47% year-on-year increase, even as large retailers reduced their pace of store expansion.
CBRE reports that approximately two dozen international brands entered India, while expansion efforts by existing global brands in the country further fueled the demand.
Retail leasing by international brands accounted for nearly 25% in 2023, a significant increase from 14% in the previous year.
According to a report by Bain & Co, India’s luxury market is anticipated to soar to $85-90 billion by 2030. This growth trajectory is driven by the rising number of ultra-high-net-worth individuals, expanding entrepreneurship, a robust middle class, increased e-commerce penetration, and heightened demand from tier-2 and tier-3 cities.
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