Encompassing a wide range of products from personal luxury goods to home decor, the luxury goods market in India is poised for remarkable growth according to Bain & Co, a consulting major.

Projections suggest that by 2030, the market could soar to a staggering $90 billion. Within this landscape, personal luxury goods alone constitute a $4 billion market.

A significant driver of this growth would be India’s rising affluent population, says Bain & Co. According to the analyst, the number of high net worth individuals (HNIs) with assets worth at least $1 million is expected to double by 2027, reaching 16.5 lakh, while the count of ultra-high net worth individuals (UHNIs) with assets of $30 million or more is expected to exceed 19,000.

Some of the notable developments in India’s luxury fashion sector include Dior's iconic fashion show at Mumbai's Gateway of India, marking a significant inclusion of India in its global calendar. Renowned designer Sabyasachi Mukherjee also opened his flagship store in Mumbai besides launching a jewelry boutique in Hyderabad. His collaborations with international brands such as Estee Lauder and Morgenthal Frederics have further solidified his global presence.

Recognising India's growing importance in the luxury fashion market, organizations like the IndoFrench Chamber of Commerce & Industry (IFCCI) have initiated efforts to facilitate collaboration between foreign luxury brands and Indian craftsmanship. Indian designers like Rahul Mishra and Gaurav Gupta are gaining prominence on global platforms like the Paris Fashion Week, showcasing the country's rich creative talent.

However, challenges persist, notably the lack of quality retail space hindering the expansion plans of luxury brands. Despite this, Pushpa Bector, Senior Executive Director, DLF Retail, notes significant growth in segments such as high-end fashion and jewelry in 2023. Brands are adapting by aligning pricing structures and diversifying product offerings to resonate with Indian consumers.

The momentum from 2023 is expected to drive further expansion of these luxury brands in 2024. Brands are anticipated to refine their strategies to cater to the evolving preferences of the Indian market, setting the stage for continued innovation and growth in the luxury landscape.

India's luxury market is experiencing a meteoric rise, with a growing affluent population, shift in consumer preferences, burgeoning young population with a penchant for luxury and increasing influence of digital platforms. This report explores the different segments within this dynamic market: traditional luxury, accessible luxury, and the flourishing presence of homegrown brands.
The rise and rise of luxury
As per Euromonitor International, India's luxury market is expected to reach Rs 82,186 crore by 2027, up from Rs 53,561 crore in 2022. Bain & Company forecasts an even more dramatic increase, with the market potentially reaching $200 billion by 2030, a 3.5-fold expansion propelled by a younger demographic, an expanding upper-middle class and a growing appetite for premium experiences. A Credit Suisse and UBS reports predicts 69 per cent growth in the number of millionaires in India between 2022 and 2027.
Luxury brands are actively establishing a physical presence in India. CBRE reports a 170 per cent year-on-year growth in leasing activity by luxury brands in 2023, with high streets (45 per cent) leading the way, followed by malls (40 per cent). Exclusive high-end malls like Jio World Plaza in Mumbai are further attracting international brands. This trend is likely to continue, with brands like Brioni, Roberto Cavalli, and Dunhill expected to enter the market in 2024.
Meanwhile, e-commerce platforms are playing a crucial role in expanding accessibility. The rise of online retailers like Ajio Luxe is creating a space for accessible and premium brands to reach a wider audience. They are offering a curated selection of luxury and ‘accessible luxury’ brands, reaching consumers beyond major metros.
Growing demand for accessible luxury
Boston Consulting Group India forecasts double-digit growth in the accessible luxury segment over the next five years. A significant segment is emerging between the mass market and traditional luxury - accessible luxury or bridge-to-luxury. This caters to aspirational consumers with growing incomes who seek quality and design without the exorbitant price tags. Brands like Sandro, Maje, and Tory Burch are tapping into this segment, offering a premium experience at a more accessible price point. As the market grows, Indian fashion designers and established brands are launching diffusion lines and contemporary collections that cater to the evolving tastes of domestic consumers. These brands offer a unique blend of Indian heritage and global sensibilities, posing serious competition to international players. Homegrown brands like Pero and Dhruv Kapoor are carving their niche in the accessible luxury space, offering a unique blend of Indian heritage and contemporary design aesthetics. Designers like Rahul Mishra are showcasing their collections at international fashion weeks and launching diffusion lines at accessible price points. These brands resonate with Indian consumers by offering designs that cater to local tastes and body types. Moreover, Indian designers emphasize personalized experiences and storytelling to differentiate themselves and build loyal customer bases.
Future outlook
The Indian luxury market presents a compelling opportunity for brands across the spectrum. Here are some key trends to watch:
Evolving consumer preferences: Consumers are moving away from logo-heavy pieces towards more sophisticated and individualistic styles. This creates space for new players offering unique pieces that cater to local tastes and body types.
Rise of occasion wear: While traditional occasion wear remains a significant driver of sales, there's growing potential for premium everyday wear catering to informal social gatherings.
Technology as an enabler: Artificial intelligence can personalize shopping experiences, optimize supply chains, and enhance customer satisfaction for luxury brands.
Complementary coexistence: The influx of international accessible luxury brands is not expected to cannibalize the market share of established luxury players or homegrown brands. Instead, it caters to a different segment and offers variety to consumers.
Personalization is key: Consumers are seeking a deeper connection with brands. Local players like Rahul Mishra, with his lower-priced ready-to-wear line AFEW, emphasize storytelling and service to build brand loyalty.
The future of India's luxury market looks bright. Rising disposable incomes, a growing young population with a penchant for premium experiences, and the increasing adoption of technology like AI will continue to propel this sector forward. To thrive in this competitive landscape, brands, both international and domestic, will need to adapt to evolving consumer preferences, leverage technology for personalization, and offer exceptional experiences that go beyond the product itself.

Operated by Arvind Fashions, premium footwear brand Stride has launched its first-ever shop-in-shop concept at Club-A Indiranagar, a multi-brand fashion and lifestyle store in Bengaluru.

Established in 2015, Stride offers an extensive range of luxury footwear and handbags, aiming to introduce diverse footwear brands to the Indian market. With a blend of homegrown labels, acquired brands, licensed products, and joint ventures, Stride curates a collection that epitomises luxury and elegance.

Among the brands available at Stride are Aeropostale, US Polo Association, Arrow, Cole Haan, and Flying Machine, as listed on the official website of the company.

Founded in 1931, Arvind Fashions reported a significant increase in consolidated net profit for Q3 FY24, reaching Rs 51.08 crore. The net profit from continuing operations stood at Rs 30.12 crore, marking a rise from Rs 26.39 crore in the same period last fiscal year. Additionally, revenue from operations rose to Rs 1,125.05 crore from Rs 1,072.78 crore in the year-ago period.

Aditya Birla Fashion and Retail Ltd (ABFRL) plans to separate the business of Madura Fashion & Lifestyle from its portfolio and spin it into an independent listed company.

The split will enable ABFRL to focus on its value retail, ethnic wear, luxury brands, and digital businesses. The company will be able to streamline its operations and focus on different areas of fashion. It will also be able to raise capital for investment in future growth and increase value for shareholders.

On the other hand, the new company will include popular clothing brands like Louis Philippe, Van Heusen, Allen Solly & Peter England, as well as American Eagle, Forever 21, Reebok, and Van Heusen innerwear. It will have a strong financial foundation and be able to grow on its own.

The department store chain owned by Landmark Group, Lifestyle aims to establish 50 new stores across India within the next four years.

The brand recently opened its 111th store on the Citylight Main Road in Surat. Covering 22,800 sq ft, this store marks the company's second store in the city and its 23rd in the Western region.

Vivek Thilakan, Senior Vice President, Operations (West), Lifestyle International says, the company sees Surat as a burgeoning and promising market for fashion retail.

The new store introduces self-checkout facilities and offers an omnichannel experience with services like 'click and collect,' enabling customers to order online and pick up their purchases from any Lifestyle store.

In the upcoming financial year, Lifestyle aims to establish 4-5 additional stores in Gujarat and Maharashtra, targeting both new locations and untapped areas within existing cities.

Recently, the retailer opened its 110th store at Raipur City Center Pandri Mall, Chhattisgarh. This marked the 11th outlet in Central India and the second in Raipur within the fiscal year 2024.

Renowned for its expansive offerings, Lifestyle encompassing apparel, footwear, children’s wear, toys, furniture, home furnishings, and personal grooming products. The brand showcases over 350 national and international labels, including popular names like Louis Philippe, Van Heusen, Arrow, Nike, Adidas, Levis, Tommy Hilfiger, and Swatch, etc.