Aditya Birla Group partners with Galeries Lafayette to tap India’s booming luxury market

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France's iconic Galeries Lafayette is set to launch its first luxury store in Mumbai in partnership with the retail arm of the Aditya Birla Group, looking to tap into India’s fast-growing base of aspirational consumers seeking premium shopping experiences.

With one of the fastest-growing affluent populations in the world and a new generation of globally exposed consumers, the appetite for high-end experiences has never been stronger, Aditya Birla Group chairman Kumar Mangalam Birla said in a statement on October 16.

“A new India is emerging, which is youthful, ambitious, and globally connected. One that embraces luxury as a statement of aspiration and identity. Our partnership with Galeries Lafayette, therefore, marks a coming-of-age moment for Indian luxury retail," Birla said.

The Mumbai store is expected to open for customers in early November. Delhi would be the next stop for the prestigious French brand synonymous with luxury, elegance, and sophistication, the company said.

Aditya Birla Fashion and Retail Ltd (ABFRL), which already houses global brands such as Ralph Lauren, Hackett, Ted Baker, Fred Perry, Forever 21, American Eagle and Reebok, plans to deepen its play in the premium and luxury segment through its partnership with Galeries Lafayette.

The luxury boom

The move underscores the group’s aim to make luxury more accessible while tapping into India’s billion-dollar personal luxury market, which it finds undersupplied, Sathyajit R, CEO, International Brands, ABFRL, told Moneycontrol.

India’s luxury market, which reached $7.74 billion in 2023, is projected to approach $12 billion by 2028, with a growth rate expected to outpace many established markets, global consulting firm Kearney has said.

Once disconnected from global luxury trends, the country is now undergoing rapid transformation — driven by economic liberalisation, rising affluence, and evolving consumer expectations.

"We expanded ourselves in the Middle East, in China, and quite naturally, we looked at India because it's a major market. It's also major because it has major opportunities for growth in the next years," Galeries Lafayette CEO Arthur Lemoine told Moneycontrol.

The high-end department store, in business for more than 130 years, has a network of 67 stores in France, primarily selling luxury and designer goods. It also has an extensive overseas presence, including in Beijing, Chongqing, Doha, Dubaï, Jakarta, Luxembourg, Macao, Shanghai and Shenzhen.

It will leverage local architecture, culture and art to elevate the shopping experience at its Mumbai store.

"We always try to strike the perfect balance between international and French brands, as we want our customers to experience our French DNA while also adapting to local preferences," Lemoine said.

Galeries Lafayette is the latest global brand to head to India at a time when shoppers are purchasing luxury items within the country almost as often as they shop abroad.

"If you look at data, the market size for luxury goods ranges between $30 billion and $90 billion and if you strip away luxury real estate, luxury cars, and so on, we believe that the addressable market for personal goods, which includes fashion, is about 10 billion dollars, growing between 15 to 20 percent annually," Sathyajit said.

Due to insufficient supply, much of the shopping continues to happen internationally. “Therefore, we believe that they had room for growth in India, both from the view of giving customers an opportunity to not just shop a lot, but also to have the same experiences,” he said.

The company can offer customers, who are global travellers, access to the very latest in luxury fashion and to aspirational customers, the joy of discovery of new brands, new products, Sathyajit said.