In recent years, luxury players like Hermes International, Christian Louboutin and others have set up shop, willing to pay Mumbai’s skyrocketing rents for space in historic real estate and access to a rising upper class.
Anurag Mathur, a partner at Bain & Company, claimed that the epidemic increased Indians’ need for personal luxury while restricting travel and forcing them to purchase these items domestically. For luxury brands, “there’s clearly a desire to look for a new frontier, and India very much, with its change, offers that.”
By 2027, around 1.66 million Indians are anticipated to have a net worth of above US $ 1 million. According to Knight Frank’s Wealth Report, the group of people with US $ 30 million in their bank accounts is expected to increase by approximately 60 per cent in the five years starting in 2022.
When Dior decided to hold its first runway show in India against Mumbai’s iconic Gateway of India, it was clear that foreign companies were paying attention. To entice local consumers and their wallets, the collection featured sequined gowns, vivid pink pops, and traditional Indian stitching on jackets, skirts, and bags.
Aditya Birla Fashion and Retail Ltd., which acquired a 51 per cent ownership in the business with an all-cash acquisition in 2021, has helped Sabyasachi, noted for its lavish bridal dresses and jewellery, develop. According to records with the Bombay Stock Exchange, the investment aided Aditya Birla in its most recent quarter. Although the firm reported a loss for the three months ended in June, Sabysaschi’s income increased and sales have had “good traction” at the Mumbai store.
The addition of premium and luxury brands to Aditya Birla’s portfolio is not unique. Reliance Brands Ltd. has invested in MM Styles Ltd., which is the owner of the fashion label that Manish Malhotra, a Bollywood stylist, runs. In addition, the conglomerate purchased a 52 per cent share in Ritu Kumar, another Indian fashion designer. The expansion of Reliance’s non-food sector is highlighted by its retail unit, which comprises fashion and lifestyle brands, which reported a 15 per cent increase in revenue year over year.
