Priya Singh and her husband Akaash, Delhi-based garments exporters, celebrated their 10th wedding anniversary in October. To mark the occasion, they bought the new Bvlgari Bvlgari Mangalsutra sautoir necklace and the B.zero 1 kada bracelet. The mangalsutra, in its second version after the wild success of the first, is priced at Rs 13.60 lakh, while earlier this year, Bvlgari introduced the kada at about Rs 12 lakh to target men. “India is one of the temples of jewellery as people worship gold and jewellery here,” says Bvlgari CEO Jean-Christophe Babin.
Bvlgari is not the only global luxury brand to have India-specific products. It has almost become a norm for such brands to introduce a Diwali collection. For instance, Christian Louboutin has launched its limited-edition India-specific collection—The Diwali Edit—of shoes for men and women along with handbags.
Global luxury brands are increasingly focussing on personalisation to appeal to the Indian consumers, says Pushpa Bector, Senior Executive Director and Business Head-Retail at DLF, that operates two luxury malls—Emporio and Chanakya—in Delhi. “This includes introducing limited-edition pieces, leveraging local artisanship, and curating experiences that reflect India’s diverse heritage.”
Consulting firm Bain, in a recent report, said that India’s luxury market will be worth $85-90 billion by 2030. Market research firm Euromonitor International, in its ‘Luxury Goods in India’ report, says the retail sales of luxury goods in India increased by 3% in current value terms to reach Rs 55,380 crore in 2023. “The outlook for the Indian luxury goods market remains positive with a robust RSP (retail selling price) growth of 6% CAGR (in real terms) anticipated in the next five years (2024-2029) led by the experiential luxury category and personal luxury goods,” says Fflur Roberts, Head of Global Luxury Goods at Euromonitor International.
India has 334 billionaires according to the Hurun India Rich List 2024; and The Capgemini Research Institute’s World Wealth Report 2024 says the number of high net-worth individuals (HNWIs) is at 3.589 million. As the number of rich increases, so do luxury sales. Luxury players have documented high sales in various categories—such as cars—that touched a record high of 42,731 units in CY2023, up 20% year-on-year, according to data and analytics firm Jato Dynamics. This is because of growing disposable income and buyers’ propensity to upgrade after the Covid-19 pandemic.
With social media and global exposure, luxury demand is not restricted to Delhi and Mumbai. In September, Amar Ohri, proprietor of Hyderabad’s Tansen restaurant, introduced the Jewel of Tansen cocktail, priced at Rs 9,999. “We sold 12 of them in the first few weeks,” he says. Drive down Hyderabad’s high street, Road No. 10, and you are likely to be stuck in a traffic snarl of luxury cars, as the city’s well-to-do shop at designer stores such as Sabyasachi, Falguni & Shane and Ritu Kumar. Brands do trunk shows in Ahmedabad, Ludhiana and Coimbatore; and on Tata CLiQ Luxury, 55% revenue comes from non-metro markets.
“By foraying into the e-commerce space, luxury brands are able to reach out to consumers across the country, and this has encouraged the adoption and growth of luxury way beyond the metros,” says Gopal Asthana, CEO of online retailer Tata CLiQ. Neeraj Walia, MD and CEO of luxury goods maker Montblanc India, says it services 329 cities through Tata Cliq Luxury, with leather accessories, pens and watches. “The younger generation... [is] into journaling and love fountain pens,” says Walia.
That’s important. India is home to around 322 million millennials. Luxury brands are focussing on millennials and the GenZ due to their inclination towards aspirational spending and a willingness to invest in unique experiences, says Euromonitor’s Roberts. Its ‘Voice of the Consumer: Lifestyles Survey 2023’ says more than 75% of millennials in India say they are looking for tailored curated experiences. “Their rising capacity to spend on luxury items teamed with wealth expansion, will be a key driver for market growth,” she says.
The expanding luxury market has led to brands such as Gucci and Louis Vuitton opening new stores at Jio World Plaza in Mumbai, and new ones such as menswear brand Brioni and shoe brand Aquazzura entering India. Swiss luxury chocolate brand Läderach, which opened its first store in Delhi last year, has seen 5x-plus growth. Even Indian luxury brands such as Zoya, the jewellery brand from the House of Tata, are expanding. “In terms of growth, Zoya has experienced an impressive CAGR of 40% over the past four years, bringing our revenue close to Rs 300 crore, which will increase further with the addition of five more stores this year—15 stores in 15 years,” says Ajoy Chawla, CEO-Jewellery Division, Titan Company.
With a growing economy and an appetite for luxury, all eyes are on India as luxury brands vie for growth.
@smitabw
