Christian Dior leases prime retail space in Mumbai's BKC district

15 Sep 2023 CW Team

The Indian branch of the renowned French multinational luxury fashion house, Christian Dior SE, has secured a lease for approximately 3,320 square feet of retail space within Reliance Industries' Jio World Plaza, situated in Mumbai's bustling business hub, the Bandra-Kurla Complex (BKC). This lease spans a period of 9.5 years.

Notably, Christian Dior, a global brand with a strong presence in India, currently operates stores in key Indian metropolises such as Mumbai, Delhi, and Bengaluru.

Fascinatingly, the parent company of Christian Dior, Louis Vuitton, has also recently finalised a lease agreement at Jio World Plaza to establish its largest store in India.

The lease for this space has been secured through Christian Dior Trading India, a subsidiary of the company, at a monthly rent of Rs 21.56 lakh, equivalent to Rs 650 per square foot, based on either the minimum monthly guaranteed amount or a share of the net revenue, whichever is higher. These details have been revealed in documents obtained through FloorTap.com.

Christian Dior Trading India, as the licensee, will be subject to a lock-in period of 36 months, and the lease will remain in effect until May 2032.

The lease agreement incorporates a provision for rent escalation, with a 7.5% increase from the 19th month to the 42nd month, followed by a 15% increase every 36 months. Additionally, Christian Dior Trading India has submitted a security deposit exceeding Rs 13.9 million, which will also experience a 15% escalation every 36 months.

Numerous global luxury brands have set their sights on the burgeoning Indian market, either through collaborations or direct market entry, in order to capture a larger share of this promising landscape.

Given India's status as one of the world's fastest-growing economies, there is a strong anticipation of substantial growth in the number of millionaires in the coming years. This is expected to drive significant consumption of luxury goods and services within the country.