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Gucci, Cartier and Louis Vuitton are among the global brands to sign leases for stores in Mukesh Ambani’s new Mumbai mall, The Jio World Plaza.
The move comes as luxury firms and Reliance Industries seek to profit from strong economic growth and a rapid rise in the number of millionaires.
The mall, which an industry source said is likely to open this year, is located inside Reliance’s $1 billion business and cultural hub in Mumbai.
Reliance has yet to disclose details about the tenants, but lease documents provided by real estate analytics firm CRE Matrix showed that Burberry Group and brands owned by LVMH, Kering and Richemont have agreed to rent shops in the mall. The brands would also share between 4 per cent and 12 per cent of their monthly net revenue with Reliance. These brands include jewellers Cartier and Bulgari, fashion houses Louis Vuitton, Dior and Gucci, watch brand IWC Schaffhausen and luxury luggage maker Rimowa, which will open its first outlet in India.
Reliance, Burberry, LVMH, Kering and Richemont did not respond to a request for comment.
“Luxury brands have always struggled for quality retail spaces in India and many were forced to open their first outlets in luxury hotels,” said Anuj Kejriwal, chief executive of Anarock Retail. “These brands are now looking for meaningful presence.”
To ensure the mall retains its luxury appeal, some agreements like that of Dior include a clause that entitles it to a 25 per cent rent reduction if at least four of 10 luxury brands don’t open their outlets within six months.
India’s 1.4 billion population, the world’s biggest, has a per capita income of just $2,300, but the country is also home to more than 800,000 dollar millionaires who are splashing out on everything from luxury homes to expensive SUVs.
Real estate consultants Knight Frank estimate India will have 1.4 million millionaires by 2026, 77% more than in 2021, as the economy continues to strengthen.
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