India’s rapidly expanding economy is creating a surge in demand for luxury goods such as bags and accessories from renowned brands like Louis Vuitton, Chanel, and Dior. However, the limited availability of high-end retail outlets poses a significant obstacle for these brands to establish a physical presence. With a population nearing 1.5 billion and an economy growing at over 6%, India is outpacing China as a key growth market for luxury products. Yet, the country has only three dedicated luxury malls: two in New Delhi—the Emporio and the Chanakya, both developed by DLF—and the Jio World Plaza in Mumbai, owned by the Reliance conglomerate.
Saurabh Bharara, head of luxury malls at DLF, highlighted the high demand from parent companies such as LVMH Group, Kering, and Richemont, all seeking more retail space in India. He noted that while around 15 top brands are ready to enter the Indian market immediately if space were available, there is currently no vacancy. DLF plans to expand the Emporio mall, doubling its leasable area from 160,000 square feet, but this expansion is unlikely to be completed before the end of 2028. Major luxury groups LVMH, Kering, and Richemont have remained silent on these developments.
In a significant development, India now ranks fourth worldwide in the number of ultra-wealthy individuals with assets exceeding $100 million, trailing only the U.S., China, and Japan, Knight Frank’s Wealth Report 2025. The country’s middle class is also growing rapidly. Despite this, India’s luxury goods market was valued at just $12.1 billion last year—less than 3% of China’s market size, based on Euromonitor data. This indicates substantial potential for growth, but the lack of quality retail infrastructure remains a major barrier.
R. Satyajit, CEO of international brands at Aditya Birla Fashion and Retail, emphasized that premium real estate is the biggest challenge facing luxury retailers. The company recently launched a franchise of France’s iconic department store Galeries Lafayette in Mumbai, providing access to around 200 international brands. Several luxury-focused malls, including the Emporio expansion, are in the pipeline, with planned locations in Mumbai, Hyderabad, and Gurgaon near New Delhi. However, these projects are expected to take several years before opening.
Chanel’s managing director, Amit Goyal, expressed optimism about the future, noting that although luxury malls are currently scarce, promising projects are underway. He identified Mumbai as a near-term priority for Chanel’s store expansion. Meanwhile, some luxury brands have opted for premium but less exclusive malls. For instance, Golden Goose, a luxury sneaker brand, has opened three stores over two years in New Delhi, Bangalore, and Mumbai, capitalizing on the confident and youthful Indian Gen-Z demographic.
The shortage of upscale mall space has led to notable gaps in India’s luxury retail landscape. Prestigious brands such as Patek Philippe and Loro Piana have no physical stores in the country. Prada operates only one beauty store and no fashion outlets, while Chanel maintains just one fashion store and seven fragrance and beauty boutiques. By contrast, Prada has 14 fashion stores in China, and Chanel operates 18. Some brands, including Louis Vuitton and Gucci, have as many as 40 to 50 stores in China. Even when brands are willing to compromise on ideal store features such as large column-free spaces, high ceilings, and ample parking, options remain limited.
India’s supply of grade-A mall space totals approximately 110 million square feet, significantly less than China’s 400 million and the United States’ 700 million square feet, property consultancy Anarock. Opening stores on high streets is generally unattractive due to concerns over cleanliness and pollution in Indian cities. Consequently, many luxury brands enter India through franchise agreements with major conglomerates like Reliance, Aditya Birla Group, and Tata Group, which provide established retail networks and capital. For example, Balenciaga, Tod’s, and Stella McCartney have partnered with Reliance Brands, while Louis Vuitton gained a Mumbai presence beyond hotels through Jio World Plaza.
Developers face a chicken-and-egg dilemma: securing funding is difficult without confirmed brand commitments, yet brands hesitate to commit until projects near completion. Rajneesh Mahajan, CEO of Inorbit Malls under K. Raheja Corp, which is developing a luxury mall in Hyderabad, highlighted this challenge. Additionally, luxury brands must contend with import duties of 35–40%, which have historically driven affluent Indian shoppers to purchase abroad in cities like Paris, Dubai, and Singapore.
Some brands are adopting a cautious approach. Lorenzo Bertelli of the Prada family indicated that India is the only significant new market under consideration, but decisions on entry timing and location, including corporate office setup, may take three to five years. He stressed the importance of having a comprehensive plan for multiple stores rather than a single outlet, given the associated costs.
