New Delhi: A rising number of Indians are shopping for luxury goods when travelling overseas, prompting payments companies, travel service providers and luxury brands to take note.
As per data shared by Visa exclusively with ET, outbound spending on luxury goods by Indians in quarter one of 2024 was 250% more compared with the same quarter five years ago in 2019, outpacing the growth in all cross-border spending by Indians that tripled.
Fast food and restaurants (up 200%), accommodation (150%) and transportation (200%) were the other areas that recorded steep growth in spending in five years, Visa said.
Sridhar Keppurengan, senior director and head of cross-border payments for India and South Asia at Visa, said the growing appetite for luxury goods and experiences is reshaping the preferences of Indian outbound travellers.
“India now ranks among the highest in Asia in terms of expressing a desire to spend on luxury goods,” he said.
Thomas Cook (India) has seen a 20-25% year-on-year jump for premium and luxury shopping experiences among Indians while traveling overseas, said Rajeev Kale, its president and country head for holidays, MICE and visa.
“We have hence incorporated visits to luxury retail outlets like MacArthur Glen and Bicester Village as part of our programmes,” he said.
“We have organised exclusive high-end shopping experiences with limo-transfers, private rooms and a personal shopper, besides access to haute-couture runway shows. We are seeing huge interest from India’s powerful corporate MICE segment too, and basis demand, we have allocated 6-7 hours at uber premium shopping outlets in France, Italy, Austria, the UK, Spain and Japan,” he added.
Indians have also started appreciating global art a lot more than before and the total pie of luxury consumption both within and outside India has increased, said Neeraj Walia, managing director and CEO of Montblanc India.
“Be it Swiss watches or leather goods from Italy or France, luxury consumption by Indians both within and outside India has increased. Shopping during travel is a different experience altogether,” he added.
SD Nandakumar, president and country head for holidays and corporate tours at SOTC Travel, said the company has designed “shop till you drop” itineraries for trips.
“Some luxury outlets have also gone all out to woo Indian shoppers with private entrances and complimentary transfers, hands-free shopping with shopping experts, exclusive discounts and offers,” he added.
Sanjay Mishra, director for India at Swiss luxury watch manufacturer Franck Muller, said while sales for the luxury brand are up 11% this year over last year in India, swiping cards internationally has also increased. “Rising disposable incomes, growing aspirations for luxury brands and favourable currency exchange have contributed to an uptick in luxury goods consumption. Besides domestic demand, we see an increase in queries at our boutiques in Dubai, London and Singapore,” he added.
Manoj Adlakha, CEO and founder of lifestyle management company RedBeryl, said its members frequently request personalised shopping experiences, including private access to exclusive boutiques and curated recommendations from personal shoppers, which reflect the growing demand for a tailored and immersive shopping experience abroad.
Markus Tan, regional director for India, Middle East, South Asia, and Africa (IMESA) at Singapore Tourism Board said Singapore’s luxury shopping scene offers a ‘seamless blend of elegance and innovation.’
“With creative concept stores like Louis Vuitton’s l’Appartement, Coach’s Tomorrow’s Vintage, and immersive spaces like Apple, the city invites discerning shoppers to engage deeply with premier brands,” he said.
“As Singapore continues to innovate in luxury travel, it remains an unparalleled destination for Indian visitors seeking refined, unforgettable experiences,” he added.
