What: BOF reviews the current situation of luxury shopping in Mumbai and how it could evolve in the coming years.

Why it is important: Mumbai is the next hotspot on the planet and many department store companies including IADS member Galeries Lafayette intend to become significant players there.

Jio World Plaza, a new luxury mega mall in Mumbai, has officially opened after 4 years of construction. It is part of Indian billionaire Mukesh Ambani's Reliance Industries.

The opening coincides with India emerging as a major luxury market, with rapid wealth creation and Indians spending more domestically due to capital controls. The mall includes 750,000 square feet of retail space and houses the first Indian stores for brands like Rimowa, Balenciaga, and Valentino. Major brands like Louis Vuitton and Gucci also have large stores there.

Historically, the lack of high-quality retail spaces has been a challenge for luxury brands expanding in India. Jio World Plaza aims to address this. While impressive, however, the mall lacks local flavor and could be anywhere globally.

In contrast, the old South Mumbai district is developing into a luxury hub with more local character. Luxury brands like Hermès, Sabyasachi, and soon Galeries Lafayette are opening stores there.  If more luxury brands open stores around Horniman Circle in South Mumbai, it could become India's equivalent of Bond Street or Fifth Avenue.

For now, Jio World Plaza dominates as a luxury destination in Mumbai and finally gives luxury shoppers a world-class mall, but South Mumbai may eventually rival it by offering a more distinct luxury shopping experience.

Will Mumbai have its own version of 5th Avenue?