Compare Items
Please, add items to this compare group or choose not empty group
It’s Ambanis vs Birlas in India’s luxury retail market – The Times of India
Business News

It’s Ambanis vs Birlas in India’s luxury retail market – The Times of India


The launch of Parisian luxury department store Galeries Lafayette earlier this month in Mumbai pits it against Reliance Industries‘ Jio World Plaza, a mall which houses boutiques of more than a dozen luxe brands like Gucci and Dior, taking competition between the two corporate biggies notches higher.Galeries Lafayette operates in India in partnership with the Aditya Birla Group. The format of the two retail spaces may vary but they are competing for a share of the same consumer wallet: families with generational wealth and a new crop of millionaires entering the market – young founders and employees of billion-dollar startups.India’s luxury retail market is estimated to touch $12 billion by 2028 from about $7.7 billion in 2023, analysts at Kearney said. The market is at its tipping point, about 15-20 years behind China’s trajectory, during which China’s personal luxury market grew nearly 8 times said Parul Bajaj, MD & Partner at Boston Consulting Group.“Luxury is shifting from occasion-based indulgence to self-expression. Personal and experiential luxury alone is projected to triple over the next decade,” Bajaj said. Not surprisingly, corporates are pouncing on the market opportunity.The retail units of Reliance Industries and Aditya Birla Group have been rivalling each other in the space for some time – Reliance Retail through Reliance Brands (RBL) has been building a portfolio of luxury and premium labels that has grown to over 90 brands (of which over 30 are luxury brands) including Balenciaga, Burberry and Tiffany & Co. Reliance’s portfolio is more heavy on western labels alongside a few partnerships with Indian designers stitched through acquisition of minority and majority stakes, such as Manish Malhotra and Abu Jani Sandeep Khosla. A spokesperson for RBL did not share details, but public documents show that the partnerships broadly are in the form of long-term franchise agreements. The deal with Balenciaga, for instance, allows RBL to be the sole India partner launching the brand in the country. Aditya Birla Fashion and Retail (ABFRL) has been stepping up its ethnic luxury play through a portfolio of Indian designer brands which includes acquisition of majority stakes in labels Sabyasachi and Tarun Tahiliani.

Healthy competition:A lot of Indians splurge on luxury but they shop from boutiques abroad, as seen in the case of LVMH. Once the big luxury brands come, the next rung of players will follow, said Anand Ramanathan, partner, consumer products and retail sector leader at Deloitte India. “Rather than fragmenting demand, this competition (Jio vs Galeries Lafayette) will expand the market. Luxury malls are crucial for mono-brand storytelling and prestige positioning. Luxury department stores bring discovery and accessibility,” said Bajaj. More competitive offerings in the market will incentivise consumers to shop for luxury within the country, added Anurag Mathur, partner at Bain & Company.About 70% of the more than 250 brands that will find space in Galeries Lafayette are debuting in India – such as Givenchy, Balmain, Jil Sander and Maison Margiela. “The response since our opening has been encouraging,” said Sathyajit Radhakrishnan, CEO, international brands at ABFRL. Questions sent to Jio World Plaza did not elicit any response.





Source link

Share: