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Lacoste India’s MD & CEO Rajesh Jain on the rise of premium consumption beyond metros, the shortage of Grade A retail space, omnichannel shopping and airports as the next growth frontier

 

India’s premium consumption story is no longer confined to its biggest metros. As organised retail infrastructure expands and consumers in emerging cities become increasingly brand-conscious, global fashion brands are widening their footprint beyond traditional retail centres.

For Lacoste, cities such as Guwahati, Patna, Indore and Lucknow are emerging as important growth markets, underlining a broader shift in the geography of premium consumption. At the same time, the brand is navigating a familiar challenge: a shortage of quality Grade A retail space in established markets, even as new premium developments open up opportunities elsewhere.

In a conversation with BW Retail World, Rajesh Jain, MD and CEO of Lacoste discusses the changing premium consumer, the expansion of organised retail, the convergence of online and offline shopping, the importance of mall positioning and why airports could emerge as an increasingly significant channel for premium fashion.

‘We Would Call It Emerging India’
For Jain, the changing retail landscape begins with a shift in how India’s smaller markets are perceived.

“I do not like calling them Tier 2 cities anymore. I would call them emerging India or emerging cities, and they are doing wonderfully well,” he says.

The traditional organised retail map was once dominated by Delhi, Mumbai, Bengaluru, Hyderabad and Kolkata. That map, according to Jain, is changing rapidly.

“Today, these emerging cities are increasingly driving the growth of retail in the country.”

The consumer profile has also evolved. Digital penetration, improving infrastructure, premium retail developments and greater brand awareness are creating conditions in which consumers outside the largest metros are increasingly comfortable with premium brands.

Many of these consumers were already discovering and buying brands online. Physical stores are now giving them the opportunity to experience those brands in person.

Lacoste has responded by expanding into Guwahati, Patna, Indore and Lucknow. In Patna alone, the brand has entered with two stores.

“These cities are generating good business for us and allow us to reach consumers who want to experience the brand first-hand,” Jain says.

Premium Consumption Is Widening
The opportunity is not limited to a new geography. It also reflects the widening pool of Indian consumers willing to spend on premium products.

Jain believes India’s scale allows premium brands to grow without necessarily having to target the entire population.

“Even a certain percentage of this market represents a significant opportunity,” he says.

The customer base itself spans different levels of purchasing power. There are aspirational consumers who may initially enter the brand during end-of-season sales, as well as customers who regularly purchase at full price.

Aspirational consumers, Jain says, can gradually transition into full-price customers as their relationship with the brand develops.

“We are seeing both segments grow strongly, and our business has been growing at a high double-digit rate.”

This expansion is closely linked to the changing role of physical retail. Lacoste continues to prioritise premium malls, while maintaining a presence on selected premium high streets.

For Jain, malls offer an experience that is particularly suited to India’s consumption environment.

“India’s weather conditions, parking constraints and the overall consumer experience make malls particularly attractive.”

The modern premium mall is no longer simply a place to shop. Consumers can park, eat, watch a film, socialise and browse brands within the same destination.

“What we increasingly see is that customers are looking for a three-to-four-hour mini-vacation. A premium mall provides that environment.”

The emergence of premium developments in newer cities is making this model increasingly viable outside the traditional metropolitan centres.

“Post-Covid, people want to connect, look good, feel good and have a social life. They are willing to spend on brands, premium experiences and convenience. The overall market itself is expanding,” Jain says.

The Grade A Retail Space Challenge
While consumer demand is spreading geographically, premium retail supply remains uneven.

The shortage of Grade A mall space is not a new issue, Jain points out. India has historically had a limited number of premium retail developments, particularly relative to the scale of the market.

“Grade A malls are still not available in the kind of supply that would allow brands to expand as quickly as they may want to.”

However, the emergence of new malls and premium retail destinations in smaller markets is changing the equation.

“That makes expansion relatively easier outside the largest cities.”

In metros and established markets, the scarcity of premium retail space remains a constraint. “Lacoste also has a certain pull with developers. They would like us to be present in their malls, and we would like to be present in those developments.”

The brand, he adds, is already present across most of India’s major premium malls.

What Makes A Mall Work For A Premium Brand?
For premium fashion brands, simply securing space in a mall is not enough. The environment around the store can be just as important as the store itself.

Jain identifies three broad considerations when Lacoste evaluates a new mall.

The first is “zoning and brand adjacencies”.

“The first thing we examine is whether the mall has proper zoning for premium brands or whether different categories have simply been mixed together.”

For a premium consumer, the surrounding environment contributes to the overall shopping experience. Jain argues that premium brands should ideally be clustered within appropriate zones, while categories such as athleisure or ethnic wear could have their own designated areas.

“The first question is about the mall’s layout, zoning and the adjacencies around the location where Lacoste would be present.”

The second consideration is the commercial proposition, followed by the terms of the arrangement.

Together, these factors determine whether a retail development fits Lacoste’s expansion strategy.

The Online-Offline Divide Is Disappearing
The debate around online versus offline retail is also becoming increasingly irrelevant, according to Jain.

“The customer is no longer different across channels.”

What was once viewed as a contest between physical stores and e-commerce has increasingly become a single consumer journey involving multiple touchpoints.

“We believe strongly in being one brand with one voice. The merchandise, pricing and assortment customers see offline should be consistent with what they see online.”

Lacoste does not distinguish between its online and offline customers. Instead, the two channels serve different functions within the same brand relationship.

Online currently contributes around **26-27 per cent of Lacoste India’s sales**, and Jain expects that share to grow as consumers increasingly prioritise convenience.

Physical stores, meanwhile, continue to play a critical role in delivering the brand experience.

A customer might discover Lacoste through social media, browse products online and then visit a store before purchasing. Another might visit a store to understand the fit and merchandise before completing the transaction online.

“The purchase journey can move between the two.”

For the brand, the objective is therefore not to choose between digital and physical retail, but to ensure that both work together.

Keeping A 93-Year-Old Brand Relevant
Lacoste’s challenge is also generational. At 93 years old, the brand needs to retain its heritage while continuing to appeal to younger consumers whose shopping behaviour is increasingly shaped by trends, experiences and digital discovery.

Jain prefers to describe Lacoste not simply as a heritage brand, but as a “timeless classic”.

“The brand has continued to innovate and evolve its perception with successive generations. That is why, despite being 93 years old, it remains relevant across generations.”

The company’s approach is built around what Jain describes as three Cs: **collection, convenience and care**.

Collection is about product innovation and how the brand is presented across physical and digital environments.

Convenience has become particularly important for younger consumers, who may not view shopping as a destination activity requiring dedicated time.

“They may not want to specifically set aside time for it, so digital channels and ease of purchase become important.”

Care, meanwhile, reflects growing consumer attention to sustainability and environmental impact.

Lacoste has established timelines to reduce its carbon footprint and is working on the materials used in its textile products, including recycled and recyclable materials. The company is also focused on extending product life and ensuring leftover material is sent for certified recycling rather than destroyed.

But remaining relevant is not only about products. Communication is increasingly central to how brands connect with different generations.

“How you communicate with each generation matters enormously,” Jain says, pointing to the growing role of digital and targeted communication.

Airports Emerge As A New Premium Retail Frontier
If emerging cities are expanding the geographical footprint of premium consumption, airports could provide another avenue for growth.

Travel retail is already a major global channel, although in India it is still largely associated with airports.

“Globally, travel retail can include railway stations and several other transit environments as well. In India, for premium fashion, airports are currently the most relevant part of that opportunity.”

Lacoste is already present at several Indian airports and, according to Jain, is seeing strong traction.

The appeal is partly demographic. Airports provide access to the kind of consumer the brand is looking to reach, while the post-security environment creates a captive retail setting.

“Once passengers cross security and enter the security holding area, there is also a captive consumption opportunity.”

Travellers have time to browse before boarding, creating opportunities for both personal purchases and gifting.

For Lacoste, the airport environment also offers an additional benefit: brand visibility within a premium setting.

“It also gives consumers exposure to the brand in the right environment.”

Jain expects the opportunity to expand as India’s aviation and airport infrastructure develops. “I believe airport retail has a strong future in India and will continue to grow rapidly.”

For Lacoste, therefore, the next phase of Indian premium retail is unlikely to be defined by one channel or one geography. Emerging cities are widening the consumer base, premium malls are becoming experiential destinations, digital and physical retail are converging, and airports are opening up another high-value touchpoint.

The common thread is a consumer who is increasingly willing to spend on brands — provided the product, experience and convenience match rising expectations.