India’s luxury goods market into reach $90 billion value by 2030: Bain & Co

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.