Aditya Birla Fashion and Retail (ABFRL) has revealed a collaboration with Christian Louboutin, a renowned designer brand celebrated for its distinctive high red-soled heels. According to the agreement, the existing Indian operations of the luxury shoemaker will transition into a newly established division of ABFRL, where both partners will have an equal ownership stake. Ashish Dikshit, Managing Director at ABFRL, expressed, "This partnership showcases our aspiration to foster and influence the evolution of India's luxury market".
Christian Louboutin initially entered the Indian market by opening its inaugural store in Delhi in 2012, followed by a subsequent launch of a second store in Mumbai. Announcing the joint venture, Alexis Mourot, CEO of Christian Louboutin Group, emphasized the significance of India as a crucial market for their brand. Experts highlight that while luxury markets in Europe and China are experiencing sluggish growth, India is emerging as a robust opportunity for brands like Christian Louboutin.
Founded in Paris in 1991, the brand has expanded its offerings to include handbags, accessories, and beauty products, establishing a presence in over 30 countries. Through this joint venture, ABFRL will be competing with Reliance Brands, which has collaborated with renowned global luxury brands like Burberry, Ferragamo, Hugo Boss, and Versace in India. Devangshu Dutta, CEO of Third Eyesight, mentioned, "ABFRL aims to curate a diverse brand portfolio catering to various consumer segments".
Having established its presence in India over time, the Louboutin brand is well-versed with the growth potential within the market. Observers note that a key driver for luxury market expansion is the increase in high-net-worth individuals (HNIs), which is growing at a rapid pace globally. According to a report by Knight Frank in May, the number of ultra-high net worth individuals (UHNWIs) in India is expected to surge by 58.4% over the next five years, from 12,069 in 2022 to 19,119 in 2027.