The increasing number of high-net-worth individuals (HNIs) in India is attracting international luxury brands, and the slowdown in neighbouring China is encouraging them to look for new growth opportunities and place riskier bets on the market that is predicted to be a major driver of luxury consumption in the decades to come.
In an effort to reach more customers in a market where the limited supply of premium real estate makes it challenging for brands to open additional stores in the area, companies such as Bvlgari, for example, have just gone online in India.
While the nation’s luxury brands are planning their expansion plans, a number of international luxury brands have made their debuts in India, including the Swiss watch and jewellery company Charriol, the Italian footwear company Aquazzura, and Golden Goose. A few more, including the British home textiles company Christy, are scheduled to make their debuts in the market next year.
According to BCG experts, the luxury (retail) sector in India is valued at US $ 8 billion and is projected to reach US $ 14 billion by 2032, rising at a compound annual growth rate (CAGR) of 7 per cent.
Pushpa Bector, senior executive director and business head at DLF Retail stated that the company has noticed a lot of interest from foreign companies looking to reach India’s younger, tech-savvy population, both in metro areas and in the country’s next major cities.
Additionally, companies are reaching smaller cities with the aid of platforms like Tata Cliq Luxury and Ajio Luxe.
