Luxury is no longer a distant dream. Last week, Giorgio Armani unveiled its first flagship store in New Delhi’s DLF Promenade. This move underscores the growing demand for premium beauty products and experiences, especially among Gen Z consumers. Recent trends, like Amazon’s record-breaking festive season sales, which saw a 400% surge in luxury beauty and fashion purchases, highlight the shift in consumer behavior. Today, luxury is seen as an investment in self-care and personal style. This paradigm shift has led to a notable surge in demand for premium products. Unsurprisingly, the luxury brand market in India continues to expand rapidly.
This week, “The People Weekly” will delve into India’s luxury market—its rapid evolution, consumer dynamics, and expanding global footprint. As a publication by PeopleLogic, a trusted voice in industry insights, we remain committed to delivering comprehensive analysis on market trends, growth drivers, and the future of luxury in India. As one of the top recruiting firms in India, PeopleLogic has been a trusted partner providing talent solutions to numerous luxury brands entering the Indian market.
Luxury Brand Market in India- Market Size and Growth
As per Statista, revenue in the Luxury Goods market amounts to US$17.67bn in 2024. The market is expected to grow annually by 3.17% (CAGR 2024-2029).
The biggest segment is the luxury watches & jewelry segment. Euromonitor International projects India’s luxury market to grow to a hefty Rs 82,186 crore by 2027, up from Rs 53,561 crore in 2022. According to Bain & Company, the market is projected to reach $200 billion by 2030, marking a 3.5-fold increase from its current scale. According to the Global Wealth Report by Credit Suisse, India was home to approximately 759,000 millionaires as of 2022, and will see a 69% growth by 2027 as against a global growth of 45% This wealth accumulation is no longer confined to metropolitan areas but is increasingly visible in tier-2 and tier-3 cities.
India’s Luxury Industry — Growing At A Rapid Pace
India’s luxury market has a rich history, from the opulence of the Maharajas to the introduction of Louis Vuitton in 2003. Today, over 50 luxury brands have established flagship stores in the Indian market. India’s luxury market has seen remarkable growth, with a Compound Annual Growth Rate (CAGR) driving significant expansion. A notable milestone was reached last year, with the industry’s value rising to an impressive $18.5 billion, up from $14.7 billion in 2015.
While luxury segments such as cars, fashion and accessories, international hotels, real estate, and luxury watches have been the primary drivers of this growth, other sectors, including beauty, wellness, furniture, travel, and food, are also gaining traction. These sectors are working to cater to the affluent consumer base, providing them with a world-class experience. In 2023, luxury brand leases in India surged to 170%
Factors driving the luxury boom
India is witnessing a significant surge in demand for luxury goods, driven by multiple factors. These include the rising number of
Ultra High Net Worth Individuals (UHNWIs),
Growth of the middle-income demographic, the
Availability of entry-level luxury offerings by international brands,
Increasing demand from tier-2 and tier-3 cities, and the
Widespread adoption of e-commerce platforms.
Another crucial factor contributing to this trend is the growing use of credit cards for discretionary spending. Recent data from the Reserve Bank of India (RBI) reveals a notable 26% year-on-year (YoY) increase in credit card expenditure, reaching ₹1.5 lakh crore in February.
India’s consistent economic growth in recent years has led to a rise in disposable income, encouraging middle-class consumers to rely more on credit cards for their purchases. According to Goldman Sachs Research in the report *“The Rise of Affluent India,”* the number of affluent consumers in the country is expected to grow from approximately 60 million in 2023 to 100 million by 2027. Furthermore, the Wealth Report 2024 by global consultancy Knight Frank projects a significant increase in the UHNWI population, with individuals possessing a net worth exceeding USD 30 million expected to rise from 13,263 in 2023 to 19,908 by 2028.
Trends Shaping the Luxury Retail Market in India
Redefined Exclusivity
India is experiencing a steady rise in disposable income, with the luxury retail market projected to reach $8.29 billion by 2028. This growth is expanding the pool of consumers able to access luxury brands, prompting a redefinition of exclusivity in the luxury segment.
To maintain their elite appeal among high-net-worth individuals, luxury brands are intensifying their focus on exclusivity for premium clientele. For instance, Louis Vuitton frequently organizes private events tailored specifically for its loyal, high-spending customers. Similarly, Gucci has introduced specialized private client services, offering exclusive previews of upcoming collections and access to limited-edition products, ensuring a bespoke experience for their most valued patrons.
Demand for Pre-owned Luxury Brands
Traditionally, luxury products have been associated with a substantial price tag, limiting their accessibility to a niche audience. However, this dynamic is shifting with the growing demand for pre-owned luxury items. In India, platforms such as Luxepolis, Zapyle, and Confidential Couture have emerged as key players in the pre-owned luxury market. These platforms specialize in offering authenticated, high-end fashion items at more affordable price points, thereby broadening access to luxury products.
Ethical Shopping
Consumers are increasingly prioritizing ethical practices upheld by their preferred luxury brands. Globally, this shift has significantly contributed to the growing penetration of the pre-owned luxury market. In response to the expectations of environmentally conscious consumers, several luxury fashion brands, including Prada and Louis Vuitton, have embraced eco-friendly packaging solutions.
Infusion of Augmented Reality (AR)
Traditionally, exploring various products in retail stores has often been a time-intensive process for consumers. However, the integration of Augmented Reality (AR) has significantly streamlined this experience, particularly within India’s luxury retail sector. AR technology enables customers to effortlessly visualize how a product would appear on them, simplifying the process of browsing through multiple options.
Influencers Shaping Trends
The growing popularity of social media platforms such as Instagram, Facebook, TikTok, and others has significantly enhanced the ability of influencers to shape fashion trends. Luxury brands increasingly collaborate with “luxury lifestyle influencers” to promote their products, thereby attracting a wider customer base. This strategy is particularly effective with Gen Z, a demographic heavily influenced by social media trends and reliant on influencers for style inspiration and product recommendations.
Impact of the Luxury Segment’s Growth on Job Creation
The luxury sector’s expansion in India has had a transformative impact on the job market. From retail to manufacturing, marketing to customer service, the demand for skilled professionals in the luxury segment has surged. With flagship stores opening in prominent locations like New Delhi and Mumbai, and international brands making India their focus, roles in luxury sales, brand management, and product design are on the rise. Additionally, the ecosystem has fostered opportunities in ancillary industries such as supply chain logistics, digital marketing, and technology-driven retail solutions.
This growth has also encouraged partnerships with local artisans, driving the revival of traditional craftsmanship and creating employment in rural areas. As global brands increasingly integrate sustainability and ethical practices into their business models, they are investing in India’s artisan communities, further boosting job opportunities across diverse demographics.
PeopleLogic Opinion
Luxury brands in India operate in a unique and rapidly evolving market that merges deep-rooted traditions with modern aspirations. These brands are not simply offering products; they are carefully curating experiences and lifestyles that resonate with the evolving tastes of the Indian consumer.
At PeopleLogic, we pride ourselves on being a trusted partner to luxury brands navigating India’s dynamic talent landscape. We understand the unique challenges of sourcing and retaining top-tier professionals who align with a brand’s values and vision. By leveraging our expertise, we help luxury brands identify the right talent, whether it’s for customer-facing roles or leadership positions that drive strategic growth. Our tailored recruitment solutions and industry insights empower brands to build strong, future-ready teams.
As luxury evolves from an aspiration to a tangible lifestyle choice for many Indians, PeopleLogic stands committed to aiding brands in finding the perfect match for their talent needs, ensuring they deliver exceptional experiences that define the modern luxury narrative.
