August 31, 2023
India's luxury market will expand to US$ 200 billion by 2030
The number of millionaires in India is expected to almost double from 796,000 in 2021 to an estimated 1.6 million by 2026
A slew of other global brands like Valentino, Balenciaga, and Galeries Lafayette are marking their entry into India
Existing luxury brands like Louis Vuitton, Dior, and Bvlgari are crafting unique propositions to resonate with the Indian audience
In anticipation of the festive season, over a dozen high-end consumer goods brands are making their foray into the Indian market. This strategic move aims to captivate consumers’ attention within a market fueled by the growing affluence of Indians with higher incomes.
Notably, many other global brands like Valentino, Balenciaga, and Galeries Lafayette are marking their entry into India, with discussions underway for Swiss and Italian luxury brands to follow suit.
The surge in discretionary spending, even in smaller towns, is propelled by increased exposure to global trends, a rise of younger luxury consumers, and the post-pandemic economic rebound. Executives emphasise that these dynamics are igniting the interest of Western luxury brands to establish their presence.
The phenomenon of a K-shaped recovery further underscores the surge of global luxury brands in India. A report by Bain & Co., a global consulting firm, predicts that India’s luxury market will expand to US$ 200 billion by 2030—a growth of 3.5 times the present size. While certain entry-level product categories have been impacted by inflation and other factors, luxury products appear to be flourishing.
As global brands tailor their offers and marketing strategies to the Indian context, notable shifts are observed. Existing brands like Louis Vuitton, Dior, and Bvlgari are crafting unique propositions to resonate with the Indian audience.
A Credit Suisse Global Wealth Report adds to this narrative, projecting a doubling of the number of millionaires in India from 796,000 in 2021 to an estimated 1.6 million by 2026. The combination of these factors paints a vibrant picture of India’s luxury market landscape, indicating a future marked by upscale growth and increased global participation.
Source: Economic Times