The Indian arm of the French multinational luxury fashion house Christian Dior SE has leased nearly 3,320 sq ft retail space from Reliance Industries in its Jio World Plaza in Mumbai’s business district Bandra-Kurla Complex (BKC) for a term of 9.5 years
The global brand already operates stores in key Indian cities including Mumbai, Delhi, and Bengaluru.
Interestingly, Louis Vuitton that controls the brand Christian Dior also recently leased space at Jio World Plaza to sup its biggest store in India.
The company has leased the space through its subsidiary Christian Dior Trading India at monthly rentals of Rs 21.56 lakh, or Rs 650 per sq ft based on minimum monthly guaranteed sum or net revenue share, whichever is higher, showed the documents accessed through FloorTap.com.
The licensee Christian Dior Trading India will have a lock-in period of 36 months and the lease will be operational until May 2032.
ET’s email query to Reliance Industries and Christian Dior Trading India remained unanswered.
The agreement includes a clause to escalate rentals by 7.5% from 19th month till 42nd month and thereafter 15% every 36 months. Christian Dior Trading India has also paid a security deposit worth over Rs 1.39 crores and this will also witness an escalation of 15% every 36 months.
Several global luxury brands have set their sights on the burgeoning Indian market and are either forming alliances or entering directly to get a bigger slice of it.
India, being the fastest growing economy in the world, is expected to witness significant growth in the number of millionaires in the next few years. This is expected to drive the consumption of luxury goods and services in a big way.
