Revenge spending, e-commerce fuelling luxury fashion market in India
07 January 2022, Mumbai:
With newly minted billionaires emerging in India, luxury fashion and lifestyle consumption landscape in the country is slowly taking shape, says Darshan Mehta, Managing Director, Reliance Brands.
He says, the luxury sector in the country is seeing a surge in revenue shopping as more number of fully vaccinated people especially in urban areas is stepping out of their homes. Revenge shoppers represent customers likely to become repeat buyers over the next few years, he adds.
Market getting habituated to international shoppers
Mehta points out, India’s luxury market has become habituated to the well-heeled international traveller and shopper, now getting used to the domestic market in the past one year. These shoppers have discovered prices in the domestic market are comparable to international market.
Also, shopping in domestic market offers them personalized, welcoming and warm experience, not available in the Western shopping arena. These factors are helping to convert die-hard international shoppers into first time Indian ones, who now swear by the joys of shopping in India, opines Mehta.
The pandemic has also raised morality values amongst consumers and has led to a surge in demand for timeless luxury products especially for gifting during weddings. After a hiatus in 2020, the Indian wedding market is back with a bang, making it difficult for Indian designers to cope with scope of business.
Ease of availability fuelling luxury gifting
The luxury gifting market is especially booming with restrictions on all other spends set aside for weddings including number of guests and the size of the event. The easy availability and accessibility has raised consumption of luxury products in the country.
Benefitting from the booming economy, young professionals are diverting their savings into luxury purchases. Internet commerce has made loads of rich and aspirational consumers in the country.
E-commerce driving luxury purchases in the country
E-commerce is fuelling luxury consumption in the country. It is also limiting luxury shopping of customers to their domestic and international travels. Innovative sale channels such as distance selling are gaining importance enabling customers to buy expensive and good quality products.
Early buyers of luxury products are transforming into customers who are now more about confident of themselves and value true luxury.
These customers view luxury as being unique and timeless and a true expression of their own individuality.
Currently, there are around 10 million ready and habitual consumers of luxury with another 25 million increasingly getting addicted to luxury shopping. These consumers are making India an epicenter of global luxury stage, Mehta concludes.
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