Aditya Kalra & Abhirup Roy

MUMBAI (Reuters), – Indian tycoon Mukesh Abani bets that a shopping center within a Mumbai 1 billion dollar business venue will attract Western luxury goods. His Reliance empire is a channel through which many of the world’s biggest brands should pass.

Euromonitor believes India’s luxury market will nearly double to $5 billion in five years. Reliance plans to build a mall featuring dozens outlets that sell powerhouse brands such as Gucci and Louis Vuitton.

Jio World Plaza is Reliance’s main attraction for Indians who are looking to buy expensive shoes and bags. Reliance would be the first to hold India’s almost $900 billion retail market. However, it is up against fierce competition from e-commerce companies like Amazon (NASDAQ:), and Walmart (NYSE.).

Reliance has three people who are familiar with its strategy. They claim that the goal is to build foreign brand partnerships as well as be ahead of other luxury retailers in their luxury products.

A person familiar with the subject said that the Jio World Centre, which is a massive commercial and cultural centre in Mumbai’s Bandra Kurla area that also houses the luxury mall, cost upwards of $1billion.

Reliance made a large-scale investment with an estimated market value of $238billion. This shows Ambani and his family’s desire to live in luxury.

Reliance wants global brands to come to India, so Reliance is looking to create that boom.

Reliance is not allowed to reveal the strategy of its sources, so they declined to provide their identities.

Reliance has not responded to Reuters’ request for comment.

FLOORPLAN

These documents reveal that the mall is spread over four floors, and will measure the same size as 10 soccer fields. It will feature marble floors and golden guardrails. The mall’s opening is expected to occur early next year due to delays in raw material imports caused by COVID-19, according sources.

Reliance documents show that around 30 brands have been confirmed for the top floor, which includes Louis Vuitton’s Louis Vuitton and Tiffany. LVMH’s rivals will also be present Kering (EPA) Gucci and Balenciaga were among those featured in the Gucci, Balenciaga & Bottega Veneta collection, as well Versace and Richemont’s Cartier & Hermes.

This document does not disclose any financial information, and it is unclear if the line-up of brands might change. The brands didn’t respond to any requests for comment.

Jio World Plaza’s outlets in India are a significant expansion of many brands. According to company websites, Louis Vuitton only has three Indian stores, even though it opened its first store in India two decades ago. Versace, however, has one.

The document indicates that the outlet of Louis Vuitton in this mall will measure 7,376 sq. feet.

Pankaj Renjhen of ANAROCK Property Consultants stated that India’s luxury sector is small and many foreign brands are more comfortable partnering with Reliance because it has the ability to manage costs and take advantage of its understanding and grip on India’s retail markets.

Euromonitor estimated India’s private luxury market at $2.6 Billion last year. This number is expected to rise 12% annually to $4.7 Billion by 2026, according to Euromonitor. Comparatively, China’s luxury market, which includes Versace 40 and Louis Vuitton 60 stores, is expected to reach $107 billion in 2026, up from $58 million last year.

For years, foreign brands have been hampered by Indian stores that are too few, which creates a problem for their brand, according to Luca Solca (senior luxury goods analyst at Bernstein).

HEIRESS ON DUTY

For now, luxury isn’t limited to expensive bags. Luxury for many Indians means family vacations abroad.

But according to Hurun India Wealth Report, the number of dollar-millionaire households in the country rose 11% in 2021 from the previous year. Which are their favorite brands? Gucci and Louis Vuitton are the top three brands they love.

Mumbai mall marks the Ambanis’ first attempt at bringing non-partner, high-wattage luxurious brands together with established partners for local sales such as Tiffany and Bottega Veneta. Documents show that around half of the luxury floors’ brands will come from Reliance partners.

Reliance’s luxury executives view the mall as a sign of strength. Although it isn’t a cash-spinner soon, Isha Ambani and her family see it as more than a vanity venture.

Two sources claim that Isha was closely involved with the design of the mall. This includes how Reliance placed rival brands right next to one another.

Fortune India magazine described her last year as “Heiress of Duty” at Reliance. It ranked her as India’s 21st most powerful female.

Reliance has invested four Indian brands in the last months, with plans to make them international. The mall’s luxury floor will have only local names. It will include cafes as well as a multiplex cinema and six screens.

Abhay Gupta (CEO of Indian consultancy Luxury Connect), said that the mall would be a powerful image booster for Reliance.

“It seems they are trying to transmit: “You can’t even think of India without considering Reliance.”