The Reliance-Tiffany partnership in India will allow Tiffany & Co to offset subdued demand in US and Europe. The US-based luxury jeweller Tiffany & Co formally announced last week it was forming a joint venture with India’s Reliance Brands Limited (RBL), a part of the Reliance Industries Limited (RIL), to open a line of stores in India. That move was widely predicted earlier.
Shagun Sachdeva, consumer insights analyst at GlobalData, says India is the fastest-growing luxury market in the Asia-Pacific region, expected to grow at a compound annual rate of 14.2 per cent between 2017 and 2022, to reach US$7billion by then.
“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.”
Sachdeva said Tiffany & Co, famous for its diamond engagement rings and famous blue boxes, has been trying to enter the Indian market for a long time.
“By leveraging Reliance’s long-standing brand presence and product positioning, it will be able to expand globally and offset the subdued demand in the US and Europe.