India’s luxury market is undergoing a remarkable transformation, driven by a rising number of high-net-worth individuals (HNIs), an expanding middle class, and growing disposable incomes. Global luxury brands are increasingly eyeing India as a key market for their expansion, tapping into the country’s growing appetite for premium products. As wealth rises and aspirations soar, India is emerging as a critical battleground for luxury retailers, a trend that has only accelerated since the pandemic.
One of the most significant shifts in the luxury landscape is the influx of global brands aiming to diversify their markets. With China facing an economic slowdown, luxury giants are now looking beyond their traditional markets, and India is quickly becoming one of their top choices.
“India is one of our fastest growing markets though our presence is currently concentrated in Delhi and Mumbai. Over the next decade, we anticipate India to become one of the most promising markets for the luxury industry, particularly for fine watches,” Jean-Marc Pontroue, CEO of Panerai, told ToI.
The strategy of reaching more consumers in India, especially when luxury real estate is in limited supply, is one reason brands like Bulgari, or Bvlgari, are tapping into the online market.
Bvlgari, the renowned Italian luxury brand known for its exquisite jewellery, watches, fragrances, and leather goods, has recently launched its first digital boutique in India, in partnership with Tata CLiQ Luxury. “The luxury market has grown a lot over the last decade and, driven by China, the boom has been extraordinary,” said Bvlgari’s CEO Jean Christophe Babin. However, with China reaching maturity and undergoing a slowdown, Babin sees India as a far more promising and untapped opportunity for luxury brands to grow. He adds, “India might become one of the most significant markets for western luxury.”
This “China+1” strategy is now being adopted by a growing number of Western companies that are diversifying operations to mitigate risks in China due to the ongoing geopolitical tensions and post-COVID disruptions. India, with its rising wealth and large population, is seen as an ideal location to balance operations and target a rapidly expanding consumer base.
The demand for luxury products in India is showing no signs of slowing down. The luxury segment has experienced a steady upward trajectory since the pandemic.
Anurag Mathur, partner at Bain & Company, told ToI, “In terms of the depth of luxury buying, India is still more than a decade behind China but the reconstitution of consumption happening in China and the rising population of HNIs in India have definitely piqued brands’ interest to pursue India in a big way.”
In line with this, Amazon India’s director of fashion and beauty, Zeba Khan, had earlier highlighted the premiumisation trend sweeping across several categories in e-commerce. “Sales of gold and diamond jewellery, including lab-grown diamonds, are seeing five times increase over last year, while sales of premium watches have grown six times over the previous year,” she said.
The premiumisation wave extends beyond jewellery and watches to automobiles, where manufacturers are witnessing a surge in demand for high-end features such as advanced safety systems and comfort-enhancing technologies in vehicles.
Not only are large brands betting big on India’s growing luxury market, but several new players are entering the scene as well. Swiss watchmaker Charriol, Italian footwear brands Aquazzura and Golden Goose, and British home textiles company Christy are some of the recent entrants. Charriol, in particular, is betting on India as a key market for its luxury watch segment, having partnered with Titan’s Helios for its India foray. “Indians are travelling more and for us, it is the right time to start in India,” says Coralie Charriol, CEO and creative director at Charriol.
India is experiencing an economic boom, with an increasing number of billionaires calling the country home. According to the 2024 Hurun India Rich List, India now boasts 334 billionaires, an increase of 75 from the previous year. This rise in wealth is contributing to an ever-expanding demand for luxury goods across the country. It’s not just big cities like Mumbai and Delhi that are witnessing this growth. Smaller cities, such as Hyderabad, Ahmedabad, and Chandigarh, are also showing a keen interest in premium goods.
The luxury retail market in India is valued at approximately $8 billion and is expected to grow to $14 billion by 2032, according to analysts at BCG. One company that is benefiting from this growth is Rado, which saw record sales in 2024. “The key to our success are our high-tech ceramic products and qualitative distribution network,” said Rado CEO Adrian Bosshard.
Luxury brands are also adjusting their offerings to cater to Indian tastes, with many introducing India-exclusive collections or festive packaging. Swiss luxury chocolate brand Laderach, for instance, has experienced a 15% year-on-year growth since launching in India in 2023. Sanskriti Gupta, spokesperson for Laderach India, notes, “Luxury brands are also tailoring their products to suit Indian preferences – whether it’s designing collections inspired by local culture or offering India-exclusive products.”
At the same time, real estate giants such as DLF are experiencing significant interest from international luxury brands wanting to tap into India’s youthful and digitally-savvy audience. Pushpa Bector, senior executive director and business head at DLF Retail, stated, “Retail spaces like DLF Emporio and The Chanakya have set the stage for this influx, and we are actively engaging with several luxury players planning their India foray.”
Platforms such as Ajio Luxe and Tata Cliq Luxury are also helping global brands reach smaller cities and towns in India. Namit Puri, India leader of consumer goods practice at BCG, observed, “Rising affluence and aspiration in cities like Hyderabad, Ahmedabad, and Chandigarh are expanding the market beyond traditional metros.”
Looking ahead, analysts predict that India’s luxury retail market will continue to outpace the general retail sector. Deloitte India’s Anand Ramanathan, partner and leader of the consumer products and retail sector, shared, “While the overall local retail market is expected to double its growth by 2030, luxury retail is projected to grow six times.” This reflects the growing enthusiasm for high-end products and the increasing readiness of Indian consumers to splurge on exclusive and quality items.
As India’s affluent class continues to expand, it is clear that global luxury brands are positioning themselves for long-term growth in the country. The emergence of a younger, wealthier, and more aspirational population in India is offering a golden opportunity for luxury brands, who are not just targeting the traditional metro cities but are now looking at a pan-India footprint.
India’s luxury market is poised for a boom, driven by a convergence of rising wealth, increased spending on premium goods, and global brands’ willingness to invest in the country. The coming years will undoubtedly see India become an even more significant player in the global luxury retail landscape, as both international and domestic brands look to capitalise on the growing affluence of the Indian consumer.
