India’s luxury retail puzzle: Seiko India chief reveals why high-end spaces are dragging despite soaring demand

The Indian consumer is warming up to luxury, especially more so in the post-Covid world. But despite the rise in luxury consumption across Indian cities, the country has a glaring gap: quality retail destinations for high-end brands remain frustratingly few. For a market that’s now sending hundreds of affluent shoppers to Orchard Road, Bond Street, or Champs-Élysées every month, the irony is stark: India is one of the world’s fastest-growing luxury markets without a luxury shopping street of its own. India’s luxury retail market, currently valued at $8 billion, is projected to hit $14 billion by 2032. 

Niladri Mazumder, president and COO of Seiko India, captures the sentiment bluntly:  “The number of quality luxury retail destinations in India is very small,” he says. “We have quality luxury brands, but not enough quality luxury retail options. You can count the good ones on your fingertips—Select Citywalk in Delhi, Palladium in Mumbai, UB City in Bangalore, and a few more. That’s it.”

This lack of infrastructure is becoming a serious bottleneck, especially as demand surges for premium and luxury products across the country. Grand Seiko, Seiko’s high-end brand, saw a 34% growth in India last year. The Seiko brand itself grew 63%, while its fashion brand Alba clocked 43% growth. “These are not small base numbers—we’ve been here 17 years. Post-Covid, our CAGR has been 45-50%. India has become one of our most important markets globally,” says Mazumder. Seiko India, currently fifth, aims to become the company’s fourth largest market globally by next year—behind Japan, the US, and Australia.

Trouble with India’s luxury real estate

Luxury retail expansion is slow—not due to lack of capital or demand, but simply because suitable locations are hard to come by.

“Look at Mumbai, a city of this scale. We have Palladium and now Jio World Drive. That’s it. In comparison, Singapore’s Orchard Road has four Louis Vuitton stores within walking distance,” Mazumder says. “In India, to see four LV stores, you’d have to travel across states. That’s not how luxury is supposed to work.”

Seiko India currently has 18 standalone Seiko boutiques and one Grand Seiko salon, with plans to open in Mumbai this September and Hyderabad by early next year. The brand is cautious and deliberate in its store expansion. “It’s not about proliferation. We want the right locations, and we’re keeping most retail within our control,” says Mazumder. They work with long-standing partners like Ethos, Kamal Watch and C.D. Pandora, but their priority remains exclusive boutiques for brand control.

Mazumder believes that without better luxury retail infrastructure—dedicated streets, large-format flagship stores, curated neighbourhoods like Bond Street or Rodeo Drive—India risks losing serious high-end spend to global destinations. “People are taking shopping flights to Singapore and Dubai because India lacks that experience.”

He wants to nudge the government and industry towards building dedicated luxury districts. “Why can’t we have a street near the new Mumbai airport where all top brands set up their flagship stores?” he asks. “It’ll bring investment, jobs, and boost tax revenues. Because when people buy luxury abroad, the government earns nothing.”

Where is luxury headed?

The rise of the Indian luxury buyer is no longer just anecdotal. “The Indian consumer is far more well-researched and informed than many international shoppers,” says Mazumder. “We’ve had customers from Bhubaneswar and Nagpur buy Grand Seiko watches worth ₹22.5 lakh online—without even trying them on.”

In fact, Seiko’s online sales for Grand Seiko—facilitated through a third-party partner—regularly see demand for ₹20-30 lakh watches from non-metro cities. “This tells you two things. One, the market is no longer just the top six cities. And two, there’s a serious trust in the brand,” Mazumder adds.

It also reveals just how much consumption is being stifled by the absence of on-ground access. “In cities like Indore and Bhubaneswar, our sales have surprised us. But we can’t open premium stores there yet, because there’s no appropriate luxury retail setting,” he says.

Covid has fundamentally changed the way Indian consumers engage with luxury. “Earlier, the rich would travel abroad to buy. But when travel shut down, they realised everything was available here—same watches, same service, same quality. That created confidence. And post-pandemic, there was a wave of revenge buying.”

This has also changed consumer behaviour. “People are no longer waiting to buy a Grand Seiko or a Louis Vuitton bag five years down the line. They’re buying now. The Indian luxury buyer today is value-conscious but confident,” he says.