India

Reliance Mumbai Mall – Size 10 Football Field -By ASC


Jio World Plaza is the main focus of Reliance’s efforts to attract wealthy Indians. Fail

Mumbai:

Mukesh Ambani risking a shopping palace in a $ 1 billion Mumbai business fair will capitalize on the growing demand for Western luxury goods, installing his Reliancen empire as a must-go portal for most of the biggest brands.

The Indian luxury market is set to nearly double in size to nearly $ 5 billion in five years, Euromonitor estimates. Targeting that growth, Reliance is building a mall with dozens of outlets for big brands from Louis Vuitton to Gucci, documents reviewed by Reuters show.

The luxury shopping mall, Jio World Plaza, is the main focus of Reliance’s efforts to lure wealthy Indians to look for expensive bags or shoes. Luxury dominance will be above its number one position in India’s nearly $ 900 billion retail market, where it faces stiff competition in e-commerce and supermarkets like Amazon and Walmart.

Three people with direct knowledge of Reliance’s strategy said the push was aimed at leveraging foreign brand partnerships and ahead of retail competitors in luxury offerings.

The total cost to develop the Jio World Center – a giant commercial and cultural hub in Mumbai’s Bandra Kurla business district that houses the luxury shopping mall – is more than $ 1 billion, an acquaintance said.

The large investment by Reliance, with a market value of $ 238 billion, demonstrates the Ambani family’s drive to thrive in luxury – particularly his 30 -year -old daughter Isha, closely involved in directing the effort.

“Global brands want to be here, Reliance is trying to drive the boom and act as a catalyst,” said a second person with knowledge of Reliance’s strategy.

Sources declined to be identified because they were not allowed to disclose Reliance’s strategy publicly.

Reliance did not respond to a Reuters request for comment.

MALL FLOOR PLAN

The mall, located on four floors and the size of a 10-foot football field, will be equipped with marble floors and gold fencing, documents show. After the COVID-19 disruption delayed imports of raw materials, the mall is likely to open early next year, sources said.

The floor plan in the Reliance document reviewed by Reuters shows about 30 such brands confirmed in recent weeks for the mall’s upper and lower floors, including Louis Vuitton, Tiffany and Dior LVMH. Also present were LVMH rivals Gucci, Balenciaga and Bottega Veneta, LVMH rivals, Dry, along with Versace, Richemont’s Cartier and Hermes.

The document does not disclose financial details, nor whether the brand lineup may be subject to change. None of the brands responded to requests for comment.

The Jio World Plaza branch represents a significant Indian expansion for many brands. The company’s website shows, for example, Louis Vuitton has only three stores in the country, despite opening its first branch two decades ago, while Versace has only one.

The Louis Vuitton store at the mall will be the largest in the country at 7,376 square feet, the document shows.

Pankaj Renjhen of ANAROCK Property Consultants said the Indian luxury market is so small that many foreign brands prefer to work with Reliance to control costs and leverage its grip – and understanding – of the country’s retail market.

Euromonitor estimated the size of India’s personal luxury market was $ 2.6 billion last year, but is expected to grow 12% a year to reach $ 4.7 billion by 2026. By comparison, the market in China, where Louis Vuitton has around 60 branches and Versace 40, will be up to $ 107 billion by 2026 from $ 58 billion last year.

Foreign brands for years have been plagued by issues including the limited number of stores in India, which “create chicken and egg problems,” said Luca Solca, senior luxury goods analyst at Bernstein.

‘HEIR ON DUTY’

Instead of luxury bags, luxury for most ambitious Indians still means things like a family vacation abroad – for now.

But according to India’s Hurun Wealth Report, the number of dollar -millionaire households in the country will increase 11% in 2021 from the previous year. Their favorite brand? Gucci, Louis Vuitton and Burberry.

The Mumbai mall is Ambanis ’first attempt to bring non-partner, high-strength luxury brands alongside existing partners for local sales such as Tiffany and Bottega Veneta. About half of the luxury flooring brands will be Reliance partners, documents show.

Luxury executives see the mall as showing strength in a long-game bet for Reliance that is more of a futile project for Isha and the Ambani family, though it won’t be a money spinner in the near future.

Isha has been closely involved in conceptualizing the new mall, including how Reliance is throwing highly sensitive placements for rival brands next to each other, two sources said.

Last year, Fortune India magazine referred to her as the “Duty Heiress” at Reliance, placing her as the 21st most powerful woman in India.

Four Indian brands – in which Reliance has been investing in recent months with plans to take them global – will be the only domestic names on the mall’s luxury floor, which will also have a cafe and a six -screen multiplex cinema.

“The mall will act as a great image booster for Reliance,” said Abhay Gupta, CEO of Indian Consulting Luxury Connect, which advises several global brands.

“Apparently they want to convey: ‘You can’t think of India without thinking of Reliance’.”

(This story has not been edited by NDTV staff and is automatically generated from a syndicated feed.)

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