LUXURY jeweller, Tiffany & Co will be able to expand globally and offset the subdued demand in the US and Europe by leveraging Reliance’s longstanding brand presence and product positioning, analysis from GlobalData showed.
The US-based Tiffany & Co, known for its diamond engagement rings and robin’s egg blue boxes, has been trying to foray into the Indian market for a long time.
As part of its efforts to enter the Indian market, Tiffany & Co is forming a joint venture with India’s Reliance Brands Limited (RBL), a part of the Reliance Industries Limited (RIL) or Reliance, to open a line of stores in the country.
Shagun Sachdeva, Consumer Insights Analyst at GlobalData said: “India 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 per cent during 2017 to 2022 to reach $7 billion in 2022.
“The projected healthy growth can be attributed to the 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.”
After the deployment of 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 joint venture is in line with its strategy to bring the best-in-class products to the emerging Indian luxury market. 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, Sachdeva concluded.