In India’s rapidly growing economy, millions of newly affluent consumers are fuelling demand for luxury goods from the likes of Louis Vuitton, Chanel and Dior. However, getting to a store can be a problem — there are not that many of them.
With nearly 1.5 billion people and an economy growing more than 6 percent, India is expanding faster than China, the luxury industry’s growth engine for more than a decade.
However, top brands are struggling to expand amid a severe shortage of high-quality retail space. India only has three true luxury malls: two in New Delhi — the Emporio and the Chanakya, owned by real estate developer DLF, and the Jio World Plaza in Mumbai, owned by the Reliance conglomerate.
Photo: Reuters
“We have regular requests from the parent companies — from LVMH Group, from Kering, from Richemont — to give them more space for the brands they want to get into India,” said Saurabh Bharara, head of luxury malls at DLF.
“We have top 15 brands that are ready to enter India, if we give them space tomorrow,” he said, but added there was “zero availability” right now.
DLF is planning an expansion of the Emporio, which would double its leasable space of 160,000 square feet but is unlikely to come online before the end of 2028.
LVMH, Kering and Richemont declined to comment.
India ranks fourth globally in the number of individuals with wealth above US$100 million, behind the US, China and Japan, according to Knight Frank’s Wealth Report 2025.
It has a rapidly growing middle class. However, India’s luxury goods market was estimated at just US$12.1 billion last year, less than 3 percent of China’s, according to Euromonitor data reviewed by Reuters.
“Quality real estate is the single largest stumbling block,” said R. Satyajit, CEO of international brands at Aditya Birla Fashion and Retail. The firm opened a franchise of France’s famed department store Galeries Lafayette in Mumbai in November, affording 200 foreign brands an entry into India.
Four luxury-focused malls, including the expansion of the Emporio, are being planned, although all are expected to take years before opening. Of the other three, one is in Mumbai, another in Hyderabad, and one in Gurgaon, part of the National Capital Region near New Delhi.
That has given hope to the likes of Chanel’s managing director, Amit Goyal, who said although “there are currently only a few luxury malls in the country, several promising projects are in development,” adding that a store in Mumbai is a near-term priority for the brand.
Some high-end labels have set up shop in less exclusive but still premium malls. Encouraged by what it calls a young, confident Indian Gen-Z population, luxury sneaker brand Golden Goose has opened three stores in New Delhi, Bengaluru and Mumbai.
The shortage of high-end mall space has resulted in notable gaps in India’s luxury market. Several leading brands such as Patek Philippe and Loro Piana have no physical stores in India.
Prada has no fashion stores and only one beauty store, while Chanel has just one fashion store and seven fragrance and beauty boutiques.
In China, by contrast, Prada has 14 fashion stores while Chanel has 18. It is not uncommon for brands to have 40-50 stores in China, including Louis Vuitton and Gucci.
Even if a label is willing to forgo ultra-high-end spaces characterised by large column-free stores, high ceilings and ample parking, options remain limited.
India has only about 10.2 million square meters of grade-A mall stock, compared with more than 37.2 million square meters in China and about 65 million square meters in the US, said property consultancy Anarock.
Opening branded stores on high streets is not seen as an attractive business proposition, given Indian cities’ problems with cleanliness and pollution.
Given the hurdles, some brands prefer to enter India through franchise agreements with the retail arms of conglomerates Reliance, Aditya Birla Group and Tata Group, which act as gateways to the market, providing store networks and capital.
Developers face a chicken-and-egg problem.
Securing funding can be a struggle without firm commitments from brands. However, that does “not flow in until such a time as the project is near completion,” said Rajneesh Mahajan, CEO of Inorbit Malls, part of property firm K. Raheja Corp, which is developing a luxury mall in Hyderabad.
Luxury players must also grapple with import duties of 35 to 40 percent that have traditionally pushed wealthy Indian shoppers toward Paris, Dubai and Singapore.
Some brands are content to take their time.
Prada family scion Lorenzo Bertelli said that India is the only major new market the group is analyzing, but a decision on how to enter, which would involve offices for corporate operations, could take three to five years.
“So when you want to open one store, you also have a plan, not just for one store, but for more than one store because you have a lot of other cost attached to it,” he said.
Elon Musk’s lieutenants have reached out to chip industry suppliers, including Applied Materials Inc, Tokyo Electron Ltd and Lam Research Corp, for his envisioned Terafab, early steps in an audacious and likely arduous attempt to break into the production of cutting-edge chips. Staff working for the joint venture between Tesla Inc and Space Exploration Technologies Corp (SpaceX) have sought price quotes and delivery times for an array of chipmaking gear, people familiar with the matter said. In past weeks, they’ve contacted makers of photomasks, substrates, etchers, depositors, cleaning devices, testers and other tools, according to the people, who asked not to
JET JUICE: The war on Iran’s secondary effects have seen fuel prices skyrocket, knocking flight schedules down to earth in return as airlines struggle with costs Airline passengers should brace for more irritation in the next few months as carriers worldwide cancel flights and ground planes to cope with stratospheric increases in jet-fuel prices. Dutch flag carrier KLM is the latest company to cut its schedule, saying on Thursday that it would scrap 80 return flights at Amsterdam’s Schiphol Airport in the coming month. That puts it in the same league as United Airlines Holdings Inc, Deutsche Lufthansa AG and Cathay Pacific Airways Ltd, which have all pruned itineraries to mitigate costs. Global capacity for next month has been reduced by about 3 percentage points, with all
Taiwan is attracting a growing number of foreign jobseekers as companies increasingly recruit overseas talent to ease labor shortages and expand global reach, recruitment platform 104 Job Bank (104人力銀行) said yesterday. More than 40,000 foreign nationals searched for jobs in Taiwan through the platform last year, a 28 percent increase from a year earlier, the company said. Malaysians accounted for the largest share of overseas jobseekers at 12.2 percent, followed by Indonesians at 11.9 percent and Vietnamese at 10.8 percent. Indonesian applicants surged more than 50 percent year-on-year, while Vietnamese jobseekers rose by more than 30 percent. Applicants from the
NO SHORTCUTS: Asked about Elon Musk’s Terafab initiative, TSMC CEO C.C. Wei said it takes two to three years to build a fab and another one to two to ramp it up Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday raised its revenue growth forecast for this year to above 30 percent, up from the 25 percent it estimated three months earlier, citing extremely robust artificial intelligence (AI)-related chip demand. “Our customers and customers’ customers, who are mainly cloud service providers, continue to send us very positive signals and outlook,” TSMC chairman and CEO C.C. Wei (魏哲家) said at an earnings conference. The company also hiked its capital expenditure for this year toward the higher end of its forecast, or US$56 billion, as it aims to step up advanced chip capacity expansions, such as
RSS