Akok by Anamika Khanna will expand their US presence with an exclusive launch at Saks Fifth Avenue’s New York flagship store. Saks Fifth Avenue, founded in 1924 and now owned by Saks Global, operates 40 stores across North America. The parent company recently completed its US$2.7 billion acquisition of Neiman Marcus Group. The Saks Global portfolio now includes Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue, and Saks Off 5th. Calling Saks Fifth Avenue a “global luxury retailer”, Dinesh Taluja, Reliance Retail’s CFO, said the move aims to “address the super luxury segment in India”.  Infant stage “The department store industry is nascent in India since the format (as per the usual definition) does not exist yet,” Selvane Mohandas du Ménil, managing director at International Association of Department Stores (IADS), told Inside Retail. “Current retail players are limited to malls, specialty stores, and concept stores built around branded spaces. The classic department store model – offering everything under one roof with a unified concept and staff, rather than just a collection of branded spaces – has yet to emerge. At IADS, we view India with great interest, believing it holds promise for this format, especially as many players are either entering or considering the market.” Recent developments in the luxury department store segment demonstrate this growing interest in India’s retail landscape. In 2022, Indian fashion conglomerate Aditya Birla Fashion and Retail (ABFRL) partnered with Galeries Lafayette to bring the iconic French luxury department store chain to India, planning flagship stores in Mumbai and Delhi. Though initially scheduled to open last year, the Mumbai store’s launch has been delayed until 2025-2026. Booming luxury market India’s luxury market has emerged as one of the most discussed and promising retail sectors in recent years, with global brands increasingly focusing their attention on this rapidly developing market, particularly as concerns about Chinese consumer spending continue to influence strategic decisions in the luxury industry. The growing affluence and aspirational mindset of Indian consumers have created an environment ripe for luxury retail expansion. According to analysis from BCG, the luxury retail market in India is currently worth approximately US$8 billion, with projections indicating significant growth potential that could see the market expand to reach US$14 billion by 2032. Based on Knight Frank’s wealth report findings, India maintains its position as the second-largest market in Asia, following Mainland China, in terms of Ultra High Net Worth Individuals (UHNWI) with assets exceeding US$30 million. The nation recorded 13,263 such individuals in 2023, demonstrating a 6.1 per cent expansion. Projections indicate this figure will experience substantial growth of 50.1 per cent by 2028. “Indian customers are sophisticated and knowledgeable about luxury retail while maintaining pride in their national industry. Unlike emerging markets of the past, they already have significant exposure to global brands and hold high expectations for quality and service. Any retailer entering India’s luxury market must carefully adapt to this discerning mindset to succeed,” Ménil concluded. Further reading: Is India the next China for the luxury sector?