As per PRICE ICE 360 ° Survey, the population of Super Rich in the country (INR 1 Cr+ income) is growing at 14–18% annually, while Near & Clear Rich (INR 30L+ income) households are rising at 7–11%, resulting a surge in premium consumption and lifestyle spending.
Suvishesh Valsan, Head, Research India at Cushman & Wakefield
India’s retail sector is undergoing a structural transformation—driven not by disruption, but by a steady rise in affluence, increasing disposable income, favourable demographics, and evolving consumer needs and expectations.
As one of the world’s youngest and fastest-growing major economies, India is witnessing rapid household income growth and wealth creation, particularly among segments with higher spending capacity. As per PRICE ICE 360 ° Survey, the population of Super Rich in the country (INR 1 Cr+ income) is growing at 14–18% annually, while Near & Clear Rich (INR 30L+ income) households are rising at 7–11%, resulting a surge in premium consumption and lifestyle spending. This has translated into a clear shift in consumption patterns, with premium and luxury products seeing increasing demand—not only in large metros but also in aspirational Tier-II markets.
In fact, the number of premium retail brands entering the Indian marketplace is on constant rise—around 18–22 new international brands including Balenciaga, Valentino, McLaren, Ligne Roset, Nars cosmetics, and TimeVallée to name a few, have debuted in India over the last few years. These luxury powerhouses are targeting premium and luxury households, further fueling the growth of this segment. Their entry reflects confidence in the maturing Indian consumer base and the increasing viability of experience-led, high-value retail formats.
At the heart of this shift is a digitally connected, value-conscious generation that places a premium on convenience, identity, and experience. Whether in beauty and wellness, fashion, or dining, discretionary spending is no longer limited to expanding choices—it is reshaping the way consumers engage with retail environments.
Despite global macroeconomic headwinds and trade-related uncertainties, consumer confidence in India’s premium and lifestyle categories remains strong, backed by economic resilience and a maturing middle class with rising aspirations.
India’s retail environments are undergoing a strategic transformation, with malls and retail spaces realigning everything from tenant mix to spatial design to meet the expectations of a new wave of premium-conscious consumers. According to Cushman & Wakefield’s retail insights, the share of beauty & wellness brands along with food & beverage outlets in top-performing malls across major metros has more than doubled since pre-2020 levels. At the same time, Athleisure & Sports (A&S) has emerged as another vital category, which has shown remarkable growth in footfall share and trading densities.
· Beauty & Wellness has become a major force in driving high-value retail consumption. With trading densities ranging from INR 8,000 to 12,000 per month, this category's footprint has surged from 6-8% pre-COVID to 15-16% by the end of 2024.
· Food & Beverage (F&B) has emerged as a significant driver of the high-quality retail market. The category’s share has grown from 6-8% pre-COVID to 15-18% through end 2024, underpinning its importance in upgrading the experiential value of retail destinations.
· Athleisure & Sports (A&S) has shown staggering growth and is now a key catalyst in aspirational retail consumption. With trading densities of INR 2,500-3,500 per month, the footprint of this category has expanded from 6-8% pre-COVID to 11-13% as of 2024.
The growing popularity of these upscale categories signifies a broader shift towards premium retail demand. Buyers are no longer just looking for products; they are seeking experiences that enrich their lives.
Millennials and Gen Z, who represent a significant share of India’s discretionary spenders, are influencing retail design by pushing for greater focus on ambience, experiential storytelling, and brand authenticity. Today, leasing decisions are shaped as much by category relevance and experiential fit as by traditional brand strength, reflecting a deeper understanding of consumer engagement patterns.
Developers and brands alike are responding to this shift. Cafés, QSRs, and fine-dining formats are not only adding to revenue streams but are becoming crucial for enhancing overall customer engagement and return visits. Large retail groups such as Aditya Birla Fashion, Reliance Retail, Shoppers Stop, and Tata Trent are leading the way—launching premium private labels, focusing on phygital retailing. expanding into Tier II and III cities, and embracing omnichannel, digital-first retail journeys. These moves reflect a broader industry transition towards targeted, value-driven formats that align with evolving consumer aspirations.
As India's retail sector embraces aspirational consumption, the premiumisation trend is unfolding not just in what consumers buy—but where they choose to shop. This is driving a parallel transformation in both mall environments and high street retail.
New malls are no longer competing purely on size; they are pivoting from scale to quality. Along with curating the right brand and category mix, success will depend on how mall owners create differentiated, experience-led spaces that offer more than traditional shopping. Grade A+ and A malls are leading this shift, combining zoning precision, flexible layouts, and institutional-grade operations to meet rising consumer expectations. As per Cushman & Wakefield, over 70% of upcoming mall supply in 2025–26 is expected to fall under the Grade A+ category, signalling a decisive move toward quality-driven formats.
Reflecting this broader transition, many retail outlets within Grade A malls are undergoing store renovations to align layouts with high-performing categories such as beauty and wellness, premium fashion, and experiential services, enhancing both zoning efficiency and consumer appeal. Technology, too, is redefining the in-store journey—from AI-enabled navigation and smart parking to personalised promotions and contactless services through mall apps, creating a seamless and stickier consumer experience.
Retailers are responding with innovations at the store level. Decathlon’s Aerocity store in Hyderabad, launched in late 2024, incorporates immersive activity zones including cycling tracks and basketball courts. Similarly, Pantaloons (ABFRL) is expanding its premium-focused footprint with 200 new stores that integrate digital-first experiences like video shopping and ship-from-store capabilities.
Beyond malls, India’s iconic high streets—such as Khan Market, Linking Road, and MG Road—are also becoming preferred destinations for retailers, as they offer brands proximity to affluent shoppers and cultural cachet. Together, these evolving spaces reflect a blended model of premiumisation—one that combines curated retail control with community-driven engagement.
Premiumisation is reshaping India’s retail landscape—shifting focus from mass appeal to curated experiences. Grade A+ malls and revitalised high streets are becoming the new anchors of retail, designed around evolving consumer expectations of convenience, authenticity, and lifestyle alignment. Large retailers are also expanding beyond core metros, targeting emerging city outskirts along with Tier II and III towns where rising incomes coupled with desire for more immersive retail experience are unlocking demand for premium experiences.
As India enters 2025, the retail sector stands on strong ground—driven by resilient consumer sentiment, a robust pipeline of superior retail spaces, and a growing emphasis on quality-led growth. With nearly 20 new premium malls set to open across the top eight cities by 2026, the next phase of retail will be defined not by scale alone, but by the depth of engagement and aspiration it delivers.
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