India’s premium consumption story is moving beyond its traditional metropolitan strongholds. As emerging cities become more digitally connected, aspirational and better served by modern infrastructure, premium brands are finding new consumers and new opportunities outside the country’s biggest metros.
For Lacoste India, this shift is already visible across markets such as Guwahati, Patna, Indore and Lucknow. The brand is also placing greater emphasis on premium malls, which are increasingly becoming destinations where consumers shop, dine, socialise and spend several hours.
In this conversation, Rajesh Jain, MD & CEO, Lacoste India, discusses the changing premium consumer, the rise of emerging cities, the importance of Grade-A malls and what retailers look for when choosing their next location.
Q. How has the premium consumer in emerging cities changed compared with consumers in the metros?
Rajesh Jain: I don't like calling them Tier-II cities anymore. I prefer to call them emerging Bharat or emerging cities, and they are doing wonderfully well.
Earlier, when we spoke about organised retail, the first cities that came to mind were Delhi, Mumbai, Bengaluru, Hyderabad and Kolkata. Today, emerging cities are driving the next phase of retail growth in the country.
Consumers in these markets are digitally literate, have access to better infrastructure and premium developments, and are increasingly aware of brands. Many discover or even purchase brands online before they are physically available in their cities.
When a brand opens a store in their city, consumers want to experience it firsthand. That is creating opportunities for premium brands, including Lacoste, to expand into these markets.
We have entered cities such as Guwahati, Patna, Indore and Lucknow, and these markets are delivering good business. Consumers are also happy to have access to the complete brand experience in their own cities.
Q. Indian consumers are aspirational but also value-conscious. How do you balance premium positioning with price sensitivity?
Rajesh Jain: India is such a large country, with such a huge population, that a premium brand does not necessarily have to address the entire market. Even a small percentage of the Indian market represents a significant opportunity for a premium brand.
We have both aspirational consumers and full-price customers. Aspirational customers often shop during end-of-season sales, purchasing merchandise from the preceding season. Over time, many of them graduate to becoming full-price customers.
We are happy to see both segments growing strongly. Our growth has been in high double digits year after year.
Q. What does Lacoste’s expansion strategy look like as premium consumption spreads across India?
Rajesh Jain: Our strategy has been clear for several years. We want to focus on premium malls rather than primarily on high streets.
Of course, we are present on premium high streets as well because they give customers the opportunity to experience the brand firsthand. But given India's weather conditions and parking challenges, premium malls offer significant advantages.
Customers can shop, eat, enjoy entertainment and socialise under one roof, in an air-conditioned environment.
What we are seeing is that customers increasingly want a three- to four-hour “mini vacation” when they go shopping. Premium malls are able to provide that experience.
The good part is that premium developments are now coming up in emerging cities as well. We are finding the right adjacencies and customer catchments there, which makes expansion much more attractive.
Q. How has the consumer mindset changed since COVID?
Rajesh Jain: Absolutely. Five years ago, or before COVID, I would have answered the question about expansion differently.
Post-COVID, people want to connect. They want to look good, feel good, have a good social life and spend on brands, premium experiences and convenience.
Because of this, the market itself is expanding significantly, and we are very happy to expand along with it.
Q. Grade-A mall vacancy has fallen sharply. Is the availability of quality retail space becoming a bigger constraint on expansion?
Rajesh Jain: We faced a similar situation about 15 years ago. There were very few premium retail developments then, and that continues to some extent.
However, the circumstances are somewhat different today because new malls and new territories are coming up in emerging markets. This is making expansion relatively easier.
In metros and larger cities, yes, Grade-A mall supply is becoming tighter. But Lacoste has a strong brand pull, and developers also want us to be present in their malls. We, in turn, want to be present in those malls.
So, while Grade-A supply is limited, we have been fortunate. We are present in almost all the premium malls across the country and are very happy with our current presence.
Q. What are the three things Lacoste considers when evaluating a new mall?
Rajesh Jain: It is slightly controversial because retailers don't necessarily ask questions of mall developers. Often, it is the other way around!
But whenever we enter a new mall, the first thing we look at is whether the mall has the right zoning for premium brands or whether everything is simply mixed together.
All brands are good, but customers look for zones. If a customer is looking for premium brands, they want a premium zone where they can experience a complete environment. If they are looking for athleisure, they would like to find that category in a particular zone, perhaps on another floor. Similarly, ethnic wear could have its own zone.
So, the first thing we look at is the mall layout and zoning, followed by whether there are the right adjacencies for Lacoste. The second is obviously the commercials, and the third is the terms of the arrangement. Those are the three key considerations for us when evaluating a mall.
Q. With online already contributing significantly to Lacoste India’s business, how do you see the role of physical stores evolving?
Rajesh Jain: Online has certainly become an important part of the business, but physical retail continues to play a critical role, particularly for a premium brand.
Consumers today want both convenience and experience. They may discover a brand digitally, but when a physical store is available, they want to experience the brand, its products and its environment firsthand.
That is why our physical expansion, particularly across premium malls and emerging cities, remains an important part of our growth strategy.
