India's luxury market is experiencing a meteoric rise, with a growing affluent population, shift in consumer preferences, burgeoning young population with a penchant for luxury and increasing influence of digital platforms. This report explores the different segments within this dynamic market: traditional luxury, accessible luxury, and the flourishing presence of homegrown brands.
The rise and rise of luxury
As per Euromonitor International, India's luxury market is expected to reach Rs 82,186 crore by 2027, up from Rs 53,561 crore in 2022. Bain & Company forecasts an even more dramatic increase, with the market potentially reaching $200 billion by 2030, a 3.5-fold expansion propelled by a younger demographic, an expanding upper-middle class and a growing appetite for premium experiences. A Credit Suisse and UBS reports predicts 69 per cent growth in the number of millionaires in India between 2022 and 2027.
Luxury brands are actively establishing a physical presence in India. CBRE reports a 170 per cent year-on-year growth in leasing activity by luxury brands in 2023, with high streets (45 per cent) leading the way, followed by malls (40 per cent). Exclusive high-end malls like Jio World Plaza in Mumbai are further attracting international brands. This trend is likely to continue, with brands like Brioni, Roberto Cavalli, and Dunhill expected to enter the market in 2024.
Meanwhile, e-commerce platforms are playing a crucial role in expanding accessibility. The rise of online retailers like Ajio Luxe is creating a space for accessible and premium brands to reach a wider audience. They are offering a curated selection of luxury and ‘accessible luxury’ brands, reaching consumers beyond major metros.
Growing demand for accessible luxury
Boston Consulting Group India forecasts double-digit growth in the accessible luxury segment over the next five years. A significant segment is emerging between the mass market and traditional luxury - accessible luxury or bridge-to-luxury. This caters to aspirational consumers with growing incomes who seek quality and design without the exorbitant price tags. Brands like Sandro, Maje, and Tory Burch are tapping into this segment, offering a premium experience at a more accessible price point. As the market grows, Indian fashion designers and established brands are launching diffusion lines and contemporary collections that cater to the evolving tastes of domestic consumers. These brands offer a unique blend of Indian heritage and global sensibilities, posing serious competition to international players. Homegrown brands like Pero and Dhruv Kapoor are carving their niche in the accessible luxury space, offering a unique blend of Indian heritage and contemporary design aesthetics. Designers like Rahul Mishra are showcasing their collections at international fashion weeks and launching diffusion lines at accessible price points. These brands resonate with Indian consumers by offering designs that cater to local tastes and body types. Moreover, Indian designers emphasize personalized experiences and storytelling to differentiate themselves and build loyal customer bases.
Future outlook
The Indian luxury market presents a compelling opportunity for brands across the spectrum. Here are some key trends to watch:
Evolving consumer preferences: Consumers are moving away from logo-heavy pieces towards more sophisticated and individualistic styles. This creates space for new players offering unique pieces that cater to local tastes and body types.
Rise of occasion wear: While traditional occasion wear remains a significant driver of sales, there's growing potential for premium everyday wear catering to informal social gatherings.
Technology as an enabler: Artificial intelligence can personalize shopping experiences, optimize supply chains, and enhance customer satisfaction for luxury brands.
Complementary coexistence: The influx of international accessible luxury brands is not expected to cannibalize the market share of established luxury players or homegrown brands. Instead, it caters to a different segment and offers variety to consumers.
Personalization is key: Consumers are seeking a deeper connection with brands. Local players like Rahul Mishra, with his lower-priced ready-to-wear line AFEW, emphasize storytelling and service to build brand loyalty.
The future of India's luxury market looks bright. Rising disposable incomes, a growing young population with a penchant for premium experiences, and the increasing adoption of technology like AI will continue to propel this sector forward. To thrive in this competitive landscape, brands, both international and domestic, will need to adapt to evolving consumer preferences, leverage technology for personalization, and offer exceptional experiences that go beyond the product itself.
All Stories
The department store chain owned by Landmark Group, Lifestyle aims to establish 50 new stores across India within the next four years.
The brand recently opened its 111th store on the Citylight Main Road in Surat. Covering 22,800 sq ft, this store marks the company's second store in the city and its 23rd in the Western region.
Vivek Thilakan, Senior Vice President, Operations (West), Lifestyle International says, the company sees Surat as a burgeoning and promising market for fashion retail.
The new store introduces self-checkout facilities and offers an omnichannel experience with services like 'click and collect,' enabling customers to order online and pick up their purchases from any Lifestyle store.
In the upcoming financial year, Lifestyle aims to establish 4-5 additional stores in Gujarat and Maharashtra, targeting both new locations and untapped areas within existing cities.
Recently, the retailer opened its 110th store at Raipur City Center Pandri Mall, Chhattisgarh. This marked the 11th outlet in Central India and the second in Raipur within the fiscal year 2024.
Renowned for its expansive offerings, Lifestyle encompassing apparel, footwear, children’s wear, toys, furniture, home furnishings, and personal grooming products. The brand showcases over 350 national and international labels, including popular names like Louis Philippe, Van Heusen, Arrow, Nike, Adidas, Levis, Tommy Hilfiger, and Swatch, etc.
Renowned luxury fashion brand, Shivan & Narresh has teamed up with MyTrident, the flagship home furnishings brand of Trident Group, to introduce an exclusive capsule collection of premium bedding and bath essentials adorned with the label’s iconic prints.
Ushering in a new era in luxury home linen, the collaboration aims to seamlessly merge Shivan & Narresh's artistic flair with MyTrident's textile expertise.
The joint venture seeks to imbue households with a sense of true opulence and offer a stylish, high-quality experience to consumers, says the designer duo Shivan Bhatiya and Narresh Kukreja,
Unveiled at the BharatTex 2024 trade show on February 26, the collection showcases six of Shivan & Narresh’s signature prints inspired by their travels across India and South Korea. These vibrant designs, including Morning Calm, Palmera, Izu Juno, Surocco, Jaiscape, and Hututi, adorn bed sheets crafted from fine 400 thread count cotton and luxurious towel sets.
Neha Gupta Bector, Chairperson, MyTrident, says, the brand remains committed to constantly push the boundaries of creativity and craftsmanship. She believes, the collaboration will redefine the home decor industry by offering a designer experience that is accessible to a broader audience.
Swedish lifestyle and accessories brand Gaston Luga has debuted in the Indian market with an aim to introduce its pragmatic designs to local shoppers. The brand has joined forces with several multi-brand online platforms to expand its reach.
Stating its commitment to merging Scandinavian elegance with functional design, Gaston Luga aims to revolutionise the Indian accessory scene, as reported by India Retailing. Known for its expertise in bringing global lifestyle labels to Indian consumers, Maison ID8 Brands,is facilitating Gaston Luga's entry into India, as per Indian Retailer Bureau.
Headquartered in Stockholm, Sweden, Gaston Luga specialiSes in crafting men's and women's bags tailored for everyday utility. Their product range spans from compact shoulder bags to backpacks, including specialised camera bags equipped with various compartments. The brand primarily operates through its global direct-to-consumer e-commerce platform.
In its Indian debut, Gaston Luga offers minimalist yet practical accessories on prominent multi-brand platforms such as Tata Cliq, The White Crow, and Ajio Luxe, catering to customers across the nation. The company's reach extends beyond India, with dedicated e-commerce platforms serving countries like the UK, US, and Thailand.
Highlighting its commitment to sustainability, Gaston Luga recently collaborated with renowned camera brand Nikon to unveil a camera bag line. Notably, the brand employs PETA-approved waterproof vegan leather in its products, as stated on its website.
India's leading beauty and lifestyle destination, Nykaa inaugurated its 175th store, a new Luxe outlet in Bandra, Mumbai.
Spanning 2,500 sq ft across two floors, the store offers an immersive beauty experience that underscores the importance of physical spaces in the discovery of luxury beauty products.
A haven for beauty enthusiasts, the store boasts an impressive array of exclusive brands and personalised beauty service including cutting-edge skin consultations utilising the latest skin analyser technology. Customers can indulge in a luxurious experience at Aveda's Dry Bar for exquisite hair treatments and explore Dyson's revolutionary hair styling tools.
The shelves of the store are adorned with exclusive brands such as Charlotte Tilbury, Urban Decay, Kay Beauty, Nykaa Cosmetics, The Ordinary, Kiehl's, Murad, Dr. Barbara Sturm, and YSL Beauty, alongside esteemed names like MAC, Estee Lauder, Lancome, Carolina Herrera, Benefit Cosmetics, and Laneige.
Nykaa opened its first store at Terminal 3 of Delhi's Indira Gandhi International Airport in 2014. Its new store in Mumbai epitomises the e-tailer’s belief in the potency of physical retail, characterised by innovation and a steadfastly customer-centric approach that continues to redefine the beauty retail landscape in India.
An exclusive presentation by renowned Indian designer Sabyasachi Mukherjee will be held by the flagship store of Saks Fifth Avenue in Beverly Hills.
Recently relocated to the iconic old Barneys New York building on Wilshire Boulevard, the department store will unveil an limited-edition collaboration with Mukherjee.
Scheduled from March 05-16, 2024, the upcoming presentation will introduce a special red carpet capsule collection named Cinématique, exclusively curated for the Saks partnership. This collection encompasses couture pieces, women’s and men’s ready-to-wear ensembles, accessories, and exquisite jewelry, including a selection of unique high jewelry items. The theme of Cinématique is inspired by the vibrant world of Bollywood, the elegance of Kolkata's private clubs, and the grandeur of the Nizam of Hyderabad.
The presentation will feature elaborate visual installations throughout the five-story structure of the flagship store, immersing visitors in the brand's world of splendor and sophistication. Additionally, Mukherjee will host private appointments with clients in three dedicated styling suites on the store's fifth floor from March 08-10, 2024 offering an exclusive opportunity to experience the designer's artistry firsthand.
Mukherjee’s global footprint includes stores in India and Dubai, along with a flagship adorned with 31 chandeliers in New York City. The designer's influence transcends borders, having collaborated with esteemed international brands such as Christian Louboutin, H&M, and Morgenthal Frederics.
A prestigious multi-brand luxury Indian fashion boutique, The Amethyst Room is set to host a showcase featuring the renowned womenswear brand Aish from February 17-23, 2023 in RA Puram, Chennai. This event aims to unveil Aish's unique take on fusion style, tailored for everyday wear.
During the showcase, Aish will offer a curated selection of its latest designs, popular pieces, as well as exclusive one-of-a-kind garments. The collection will spotlight Aish's signature use of premium fabrics like cotton, silk, and linen, coupled with their trademark loose and relaxed silhouettes. Among the showcased items will be loose layers, elegant kaftans, versatile wrap tops, chic a-line skirts, and stylish shirt dresses. Aish's fusion prints, including vibrant ginghams, eye-catching neon pinstripes, artistic florals, and abstract patterns, will also take center stage.
The Amethyst Room has a rich history of presenting designer showcases, aimed at introducing leading labels to Chennai's discerning fashion enthusiasts. In recent times, the boutique has organised successful pop-up events featuring esteemed brands such as Shades of India for handloom aficionados and Nikasha for the launch of its 'Nikasha Goa' resort wear line in November 2023.
Originating in Kolkata, Aish specialises in crafting exquisite resort wear for women. Founded by designer Nupur Goenka, Aish's creations are available both online and at select multi-brand outlets like Le Mill, Aloja, and Ajio Luxe. Their product range includes elegantly crafted kaftans, dresses, and separates, all meticulously fashioned from natural fabrics.
Operated by Arvind Fashions, premium footwear brand Stride has launched its first-ever shop-in-shop concept at Club-A Indiranagar, a multi-brand fashion and lifestyle store in Bengaluru.
Established in 2015, Stride offers an extensive range of luxury footwear and handbags, aiming to introduce diverse footwear brands to the Indian market. With a blend of homegrown labels, acquired brands, licensed products, and joint ventures, Stride curates a collection that epitomises luxury and elegance.
Among the brands available at Stride are Aeropostale, US Polo Association, Arrow, Cole Haan, and Flying Machine, as listed on the official website of the company.
Founded in 1931, Arvind Fashions reported a significant increase in consolidated net profit for Q3 FY24, reaching Rs 51.08 crore. The net profit from continuing operations stood at Rs 30.12 crore, marking a rise from Rs 26.39 crore in the same period last fiscal year. Additionally, revenue from operations rose to Rs 1,125.05 crore from Rs 1,072.78 crore in the year-ago period.
Having achieved a gross merchandise value (GMV) of Rs 1,300 crore in FY2023, Brand Studio Lifestyle aims to increase it to Rs 2,000 crore in FY2024.
The house of brands also aims to diversify its retail presence by entering offline markets and launching large-format stores nationwide. Additionally, it plans to sustain growth through category expansions, global retail ventures, and strategic partnerships, maintaining their commitment to delivering real-time fashion to a widening customer base.
Operating six distinct brands, including Highlander, Tokyo Talkies, Vishudh, Locomotive, Ketch, and Hoop, Brand Studio Lifestyle caters to diverse fashion needs, serving over 300 million customers with 25,000 styles across 30 categories.
Primarily a digital-first enterprise, Brand Studio Lifestyle leverages leading e-commerce platforms like Myntra, Flipkart, Amazon, Ajio, and their direct-to-consumer website and app. With over 65 per cent of customers hailing from Tier I and II cities, it also extends its reach through shop-in-shops and online platforms in GCC countries.
Inventory management is streamlined through a sophisticated tracking system, allowing agile adjustments to meet demand. The company collaborates with over 400 supply chain partners and manages vast warehouses dispatching 80,000 units daily.
Defying economic jitters, Ralph Lauren exceeded the revenue expectations by Wall Street for the 12th straight quarter. The success of the iconic American brand success was driven by factors including a luxury boom in the US.
Wealthy shoppers in the US indulged in Ralph Lauren's classic sweaters and shirts, boosting sales despite economic concerns. This trend aligns with similar strong performances by other luxury brands like LVMH and Cartier.
While some brands faced sluggish wholesale business, Ralph Lauren's focus on direct sales helped mitigate the pressure. This strategy gave the company greater control over brand experience and pricing.
China continued to be key growth driver for Ralph Lauren with a 30 per cent surge in sales. This also reflected a recovering Chinese economy and growing demand for luxury goods.
Ralph Lauren's financial performance reflects its strategic positioning and ability to capitalise on key market trends. The company's strong showing bodes well for the future of the luxury sector, particularly with its focus on direct-to-consumer channels and targeted markets like China.
A renowned indigenous lifestyle brand, Fabindia championed India's 5F vision at the Bharat Tex Global Textile Expo 2024. This vision, spearheaded by PM Narendra Modi, embodies a comprehensive approach to the textile industry, encompassing sustainability, innovation, and global competitiveness. Since its inception in 1960, Fabindia has been a trailblazer in driving positive change across the entire value chain.
Under the banner of its ESG campaign 'Designed for Impact - Community, Process, and Products,' Fabindia showcased the vibrant tapestry of Indian craftsmanship, celebrating textiles for apparel and home. Rooted in Indian heritage and culture, the brand is fortified by sustainable practices, actively exploring new avenues in recycling and upcycling, from exquisite home furnishings to timeless apparel pieces.
The brand's participation in the expo aimed to celebrate Indian artisans' unparalleled craftsmanship while emphasising its dedication to community development and innovation. At the expo, Fabindia showcased its diverse offerings in both apparel and home collections. From mesmerising handblock prints to elegant embroideries and magnificent weaves, the brand remains steadfast in its eco-conscious processes, empowering over 55,000 artisans across various clusters.
FabHome's collection featured exquisite handwoven rugs known as Panja Dhurries, timeless upholstery options, and exquisitely crafted curtains and cushions, adding character to any space. Additionally, Fabindia presented unique offerings like 'Shunya' and 'Punh,' upcycled from discarded single-use plastic bottles and fabric leftovers from production, respectively, showcasing the brand's commitment to creating a positive impact on society and the environment.
Riding the wave of India's rising luxury market, Bengaluru, India's Silicon Valley, is attracting a growing number of international luxury brands. With its affluent population, driven by tech professionals and entrepreneurs, and established families with wealth, the city offers a unique and promising market.
What makes Bengaluru attractive
One major draw is it high-spending demographics. Bengaluru is home to over 10 million people it is the third most populous city in India. Bengaluru boasts of a large population of high-net-worth individuals (HNWIs), with over 12,600 millionaires 50 centi-millionaires, eight billionaires and a growing presence of tech professionals with high disposable incomes. As designer Aviva Bidapa says, "Louis Vuitton bags are more common [here] than grocery bags. Everyone has them." Little wonder wy Louis Vutoon established a store in UB City 15 years ago, reflecting the city's growing demand for luxury brands. Beside techies, the city is home to "old money" families, Kannada film industry stars, and sports personalities who contribute to the luxury market.
While historically known for its conservative approach to luxury, Bengaluru is witnessing a shift towards international brands and streetwear, with sneakers gaining popularity. Malls like UB City and Phoenix Mall of Asia, The Collective offer diverse brands and experiences alongside online platforms like Tata Cliq. These are the preferred channels for international brands. Moreover, high import duties make luxury goods in India more expensive compared to other markets, but personalized service and curated experiences can attract local buyers.
While international brands like Louis Vuitton and Ferragamo are present, the city also boasts a thriving local luxury scene with designers like Shantanu & Nikhil have store there, then there is Aviva swimwear, founded by Aviva Bidapa to cater to Bengaluru's growing luxury scene. Angadi Heritage, the opulent store selling silk saris and contemporary Indian designer brands. Sneaker Stories India, an Instagram account promoting the sneakerhead community in Bengaluru. Ensemble the multi-brand Indian designer store is located in the popular Jayanagar neighborhood.
Indeed Bengaluru's unique blend of tech-driven wealth, diverse consumer cohorts, and evolving preferences make it a promising market for international luxury brands. By understanding the local landscape, adapting their approach, and offering personalized experiences, brands can tap into this thriving market and contribute to its continued growth.
09 February 2024, Mumbai
Sanfe, India's largest online femcare brand, launches Glycoclear Technology, a revolutionary skincare innovation addressing complex body care issues faced by Indian women.
Key highlights:
Glycoclear Technology: A trademarked blend of AHAs and BHAs for exfoliation, faster absorption, and smoother skin.
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- Instalite Detan Body Cream: Detans in 10 minutes.
- Spotlight Body Lightening Cream: Targets dark underarms, neck, joints, and skinfolds.
- Clear & Confident Body Wash and Body Lotion: For body acne, tan, bumps, and dark spots.
- Underarm Lightening Roll On: Balances pH for long-lasting freshness.
- Reveal No More Bumps Body Scrub: Addresses keratosis pilaris.
- Focus on Indian women's needs: Addresses concerns like tanned skin, dark underarms, and keratosis pilaris.
- 18 dermatologist-approved products: Tailored solutions for various body concerns.
- Rapid growth: Annual revenue run rate of Rs 100 crore and target of 500% growth in 3 years.
- Financial commitment: 5% of turnover allocated to research and innovation.
- Funding: Raised USD 3.93 million, with a target of achieving INR 500 crore in revenue.
Quotes:
- Archit Agarwal, Co-Founder, Sanfe: "Our mission is to empower women with more than just products. With Glycoclear, we address a broader spectrum of their body needs."
- Harry Sehrawat, Co-Founder, Sanfe: "Glycoclear is about breaking free from body concerns and societal norms. Each product instills confidence and liberation."
- Mr. Preeti Ranjan Panda, Dean of Corporate Affairs Relations, IIT Delhi: "This transformative blend is a testament to our commitment to pushing the boundaries of knowledge and fostering impactful innovation."
Products:
Sanfe is poised to revolutionize the Indian beauty and wellness sector with its commitment to innovation and focus on women's empowerment.