Luxury Brands Rent 600,000 Square Feet of Space in 2023: Highest Leasing in Six Years | India Business News

Feb 8, 2024



Boom in the market of luxury brands: In 2023, luxury brands leased 600,000 square feet of space, up from 230,000 square feet a year earlier, the highest leasing in six years due to strong demand. premium consumer,
Data cited by ET CBRE A notable shift is revealed, with luxury brands achieving a 9% share in overall leasing activity in 2023, a jump from the 3% recorded in 2018.
Anshuman Magazine, CBRE's president for India, South East Asia, Middle East and Africa, explains why luxury brands are expanding. He noted that consumers' growing appetite for global brands and higher disposable incomes are driving this growth. He also said that the availability of organized retail spaces in major cities is pushing brands to enter key urban areas. The magazine highlighted the promising trend in the luxury sector, which sees growth more than doubling in 2023, mainly due to entry and expansion. international brand,
Read this also Promote 'Make in India'! Airbus awards contract to Dynamic Technologies to manufacture doors for A220 aircraft
In July 2023, Canadian lingerie retailer La Vie en Rose entered the Indian market by opening its first store in Noida through a partnership with Apparel Group India. It later expanded its presence to Pune and Bengaluru.
Similarly, Rimowa, a luxury goods 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, emphasizes the need for retail space due to the aspirations of Indian consumers. He discussed plans to launch bridge-to-luxury malls to support the growing presence of luxury brands, underscoring the important 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. American lingerie company Victoria's Secret also expanded its footprint by opening stores in Hyderabad and Pune.
Global luxury brands are showing confidence in the Indian market. For example, Aditya Birla Fashion Retail recently partnered with the famous French luxury department store chain Galeries Lafayette.
In 2023, the retail sector reached a record-high lease of 7.1 million square feet across eight cities, representing a 47% year-on-year increase, even as large retailers slowed the pace of store expansion. Did it.
CBRE reports that nearly two dozen international brands entered India, while expansion efforts of existing global brands in the country further boosted demand.
Retail leasing by international brands was expected to be around 25% in 2023, a significant increase from 14% in the previous year.
According to a report by Bain & Company, India's luxury market is estimated to reach $85-90 billion by 2030. This growth path is driven by the growing number of ultra-high-net-worth individuals, expanding entrepreneurship, and a strong middle class. , e-commerce penetration increased, and demand from tier-2 and tier-3 cities increased.



Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *