Tiffany & Co. India move gets GlobalData thumbs up
A recently announced Indian JV with Reliance Brands will allow Tiffany & Co. to offset subdued demand in the US and Europe, according to GlobalData.
This will see the US-based luxury jeweller open a line of stores in India during 2019 and 2020.
The country is the fastest growing luxury market in the Asia-Pacific region and is expected to grow at a compound annual growth rate of 14.2% during 2017 to 2022 to reach $7 billion in 2022. This can be attributed to a positive economic outlook, growing younger upper-middle-class population coupled with growing brand-consciousness, and the increasing popularity of the online channel for luxury shopping.
Leveraging Reliance’s longstanding brand presence and product positioning is a good move by Tiffany & Co., argues Shagun Sachdeva, Consumer Insights Analyst at GlobalData.
“After the deployment of an omnichannel model and the introduction of the iconic British toy retailer Hamleys in India earlier this year, the latest move by Reliance to open Tiffany stores in Delhi later this year and in Mumbai in 2020 through a JV is in line with its strategy to bring the best-in class products to the emerging Indian luxury market,” she adds.
“It provides a unique opportunity for Reliance to bolster its consumer-focused units, retail and telecoms, to match the strength of its leading oil and gas business.”