From celebrity brand ambassadors to designers taking couture by storm: Indian luxury market is coming of age

Indian designers are making a splash on the world stage, while the biggest of global brands are wooing India’s growing affluent class like never before

It’s the first week of November and Diwali is just a few days away. Shifali Shah, a 37-year-old marketing executive at a leading multinational pharma company in Mumbai, has her shopping list ready. Her destination: Jio World Plaza, Mumbai’s latest luxury shopping mall that opened its doors on November 1. Spanning four levels and 750,000 sq. ft, the Plaza at BKC hosts 66 luxury brands. Shah is particularly keen on exploring brands that have finally entered India—Balenciaga, Valentino, Tory Burch and YSL, among others.     

The mall also has stores by leading Indian fashion designers such as Manish Malhotra, Abu Jani Sandeep Khosla, Rahul Mishra, Ri by Ritu Kumar, etc. Incidentally, they are all brands that Reliance Brands Ltd has invested in. “Our envisioning of the Jio World Plaza is aimed at bringing the best global brands to India as well as highlighting the prowess and craftsmanship of top Indian brands,” Isha Ambani, Director of Reliance Industries Ltd, said in a statement during the mall’s launch. Her statement encapsulates the two-way street that is currently the Indian luxury market. While top Indian luxury fashion designers are making a splash on foreign shores, global luxury brands are wooing Indian customers more aggressively. 

It’s Raining Brand Ambassadors

Let’s start with the global luxury brands. Some of the biggest names have snapped up Indian actors as brand ambassadors. In May 2022, Louis Vuitton appointed Deepika Padukone as its latest global brand ambassador, the first Indian to hold the post. Then in October, she became the ambassador for French heritage luxury jewellery brand Cartier. Earlier, in 2021, Priyanka Chopra Jonas was appointed the global brand ambassador for Italian luxury jewellery brand Bulgari. 

Following in their footsteps is Alia Bhatt, who earlier this year became Gucci’s first global brand ambassador from India. And in October, Ananya Panday debuted as Jimmy Choo’s brand ambassador in their Diwali capsule campaign. At the end of October, Katrina Kaif was signed up as brand ambassador for Swiss watchmaker Rado.   

“India’s remarkable economic growth and its vibrant consumer landscape have thrust it into the global spotlight as a rapidly expanding market,” says Pushpa Bector, Senior Executive Director at DLF Retail. Indian actors, who enjoy significant cultural clout and widespread popularity, play a pivotal role in connecting global luxury brands with local customers, she adds. “Their substantial digital presence further enhances their ability to engage with a broader and more global audience.”   

Luxury brands are also expanding their footprint in India. Gucci opened its fifth store at Jio World Plaza and Louis Vuitton its fourth. Bulgari, too, has opened its second store at the mall after the one in Delhi. Waiting in the wings is the 125-year-old, Paris-based Galeries Lafayette. It will be the first European department store of its kind to enter India; it will open a branch in Mumbai next year, and then one in Delhi. Showcasing more than 200 international and local brands across fashion, lifestyle and food, the new venture is in partnership with Aditya Birla Fashion and Retail Ltd (ABFRL).   

The Indian Luxury Market   

Why are global brands flocking to India when the luxury market here is tiny compared to those like China? Per market research firm Euromonitor International, the luxury goods market in India is expected to grow to Rs 82,186 crore by 2027 from Rs 53,561 crore in 2022. “Thanks to domestic luxury shopping, Indian consumers’ spend on personal luxury goods has continued to grow year on year since 2020 to reach $3.2 billion (around Rs 26,648 crore) by 2023,” says Fflur Roberts, Head of Luxury Goods at Euromonitor International. “This trajectory is set to continue over the short to medium term, albeit at a slower pace, to reach $4.3 billion (around Rs 35,808 crore) by 2028, spurred on by a number of local factors, including better shopping options.”   

This aligns with India’s burgeoning affluent consumer demographic. A 2023 Wealth Report by Knight Frank projects a 58.4 per cent growth in India’s ultra-high-net-worth individuals (UHNWIs)—those with a net worth of over $30 million—over the next five years, with the number expected to reach 19,119 by 2027. The billionaire count is likely to grow from 161 in 2022 to 195 in 2027. And according to the recently released 360 ONE Wealth Hurun India Rich List 2023, India had a record 1,319 individuals with a net worth of more than Rs 1,000 crore. 

Indian Luxe Goes Global   

Meanwhile, Indian fashion is enjoying its moment on global ramps and red carpets. This year, pop queen Beyonce wore three different saree gowns and body suits by couturier Gaurav Gupta for her Renaissance World Tour concerts. The launch of the Nita Mukesh Ambani Cultural Centre (NMACC) in Mumbai earlier this year saw the likes of Zendaya dressed in an outfit by Rahul Mishra, who in September launched his ready-to-wear label called AFEW Rahul Mishra at the Palais de Tokyo in Paris. 

Other designers who made an appearance on global ramps such as the New York Fashion Week, Paris Fashion Week and Milan Fashion Week include Falguni and Shane Peacock, Kanika Goyal, and Dhruv Kapoor, among others.   

That’s not all. From fashion designer Sabyasachi Mukherjee opening a store in New York to Dior holding a landmark Pre-Fall 2023 show in Mumbai this March, it’s truly a case of Indian luxe, global flex.