India's luxury market poised for expansion, says Barclays

India's luxury market is primed for substantial growth, according to Barclays, with forecasts indicating an annual expansion of 15 percent to 25 percent over the next seven years. This trajectory could elevate the market's value to an impressive 23 billion euros to 38 billion euros. The driving force behind this surge, Barclays notes, is India’s burgeoning middle class.

Despite currently representing a modest 2 percent share of global luxury sales, major Indian cities play pivotal roles in catering to the country's affluent demographic, hosting a significant 90 percent of the nation's luxury retail infrastructure, reported India fashion outlet DFU. New Delhi, for instance, boasts a notable concentration of affluent families and is home to India's first Louis Vuitton outlet, established in 2003.

Mumbai is home to India's largest luxury shopping mall

Mumbai distinguishes itself with the Jio World Plaza, the nation's largest luxury shopping complex sprawled across 750,000 square feet, housing brands such as Louis Vuitton, Dior, Gucci, and Cartier. Notably, this project is reportedly linked to a potential 3 billion dollars acquisition of the Neiman Marcus Group, DFU said.

Bengaluru, recognised as India's tech and IT hub, is also carving a niche in the luxury market. The inauguration of the Mall of Asia in October underscores the city's emerging status as a luxury destination.

Galeries Lafayette, the renowned French department store group, aims to establish a presence in Mumbai and New Delhi through partnerships with developer Aditya Birla, as reported by DFU, India's fashion news outlet. Simultaneously, Christian Louboutin has recently initiated a joint venture with Aditya Birla to penetrate the Indian market.

Barclays' insights highlight growth potential for various brands, with positive feedback received from mall operators. "Beyond Gucci, we also hear positive feedback around Saint Laurent and Balenciaga. Outside of Kering, brands like Louis Vuitton, Chanel, and Dior were also flagged as popular during our discussions," stated the report.