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“Big cities defined luxury. Then it got old.” This is one of the most surprising, and yet perhaps one of the most important, takeaways from Indian e-commerce platform Tata Cliq Luxury’s latest consumer report.
The report, titled ‘Thinking Beyond the Cart: Elevating Luxury E-commerce’, reveals that 43 per cent of Indian luxury consumers live in metro cities (Mumbai, New Delhi, Hyderabad, Pune, Chennai, Kolkata and Ahmedabad), while the remainder inhabit smaller cities and towns. “The consumer base has shifted from institutional or old money — the early luxury shoppers — to, say, a business head from a small city like Saharanpur,” notes fashion designer Masaba Gupta in the report.
On Tata Cliq’s platform — which carries over 1,500 brands including the likes of Calvin Klein and Tommy Hilfiger — luxury, watches, footwear and apparel are the most frequently shopped categories in Tier 2 and Tier 3 cities, while in metro cities, the most popular categories are accessories, watches and apparel.
Anjali Gaekwar, co-founder of luxury advisory firm Lighthouse, says there was a shift after Covid. “Incomes have grown outside of metro areas, consumers are increasingly able to afford high-end products. They also do not necessarily feel the need to move to a bigger city and rather are comfortable thriving in their own city,” she explains. “The increase in digital media, too, has meant these consumers have developed an appetite for luxury brands once considered exclusive to metros.”
Heritage jewellers Bvlgari is among those looking beyond Mumbai and Delhi to emerging smaller markets within India, through a combination of online (it has an e-concession on the Tata Cliq Luxe website) and physical retail. “We have established a strong presence in nine key cities (with their watches available through specialty stores in cities such as Chandigarh and Ahmedabad), ensuring our luxury offerings reach a wider audience,” Bvlgari CEO Jean-Christophe Babin tells Vogue Business. “We continue to host exclusive physical exhibitions and trunk shows in these cities, creating meaningful connections with influential communities and cultivating relationships with our clientele.”
This “phygital” approach is key, says Gaekwar, especially given the limited high-end retail presence in Tier 2 and Tier 3 cities (luxury malls are limited to the main metros). “Major luxury brands are constantly and dedicatedly strategising to tap into these high-net-worth individuals in Tier 2 and Tier 3 cities… these consumers don’t want to be left behind by their metro counterparts,” she says. Gaekwar stresses the importance of pop-ups and easy-to-access after-sales services in these markets.
Keep a ‘watch’ on pre-loved
Another significant opportunity identified in the report is in pre-loved luxury goods. India has a long heritage of reuse, the authors point out, which is being upheld by younger generations. “Vintage jewels, textiles and other precious pieces handed down through generations hold great appeal for zillennials [individuals born roughly between the mid-1990s and early 2000s] who have faith in concepts like sustainability and circularity,” the report states.
This shift might come as a surprise, especially since international secondary shopping platforms have struggled in India. (Poshmark launched in the country in 2021, and closed its website just two years later.) Earlier this year, Relove, a platform co-founded by leading tech entrepreneur Kirti Poonia (also co-founder of Camera, an AI fashion photography tool used by industry giants like H&M), also closed its website. “Pre-loved does have potential to be a good business in India, but not a great one. Indians are not keen on buying secondhand clothing,” Poonia says.
However, she says there is an opportunity in watches and handbags (especially watches, which act as status symbols for the newly wealthy). It is in this segment that Tata Cliq Luxury is focusing its pre-loved offering. “The watches category on our platform is well established and continues to perform exceptionally well,” says Tata Cliq CEO Gopal Asthana. “We saw a natural progression in expanding into the pre-owned space.” The platform has seen a strong demand for secondhand watches from non-metro markets like Ajmer, Bhubaneswar, Cuttack, Guwahati, Patiala and Raipur. When it comes to handbags, Gucci is its top seller, with the demand mainly stemming from Tier 1 and Tier 2 cities.
“There has been a 600 per cent rise in the price of Swiss watches over the last 17 years,” Jay Makhijani, founder of luxury watch reseller Jay’s Watch Store, which has locations in Bengaluru, Ahmedabad and Mumbai, said in the report. “And while pre-owned watches are also expensive, the secondary market allows the newly rich, who have just begun collecting watches, to shop with ease — there are no waiting lists and no screening processes to navigate.”
The role of storytelling
“Stories are building connections” is one the key findings of the report. India has a deep and ancient culture of storytelling, which is also reflected in its dress and textile traditions. From weaves to embroidery to colour, every detail tells a story. “In India, you’ve got to be able to tell stories. You’ve got to be able to provide an ambiance and create a legend,” says Frank Vivier, group transformation officer at Richemont. As the report reads: “The value of a powerful and emotional narrative has never been stronger than in the age of social media. Brands are targeting the share of mind, to get a share of the wallet.”
This understanding is crucial for luxury brands, Srimoyi Bhattacharya, head of luxury advisory at premium lifestyle consultancy Peepul, points out. “The days of tokenistic approaches or bait for a scroll-fest to engage with the Indian luxury consumer are over,” she says. “Luxury brands must now show a genuine understanding and appreciation of India’s rich heritage, traditions and values.”
Among recent collaborations that have resonated with consumers are Bvlgari’s incorporation of the mangalsutra, a traditional bridal necklace, and Dior’s partnership with the Chanakya School of Craft, which supports Indian artisans while working to preserve craftsmanship. Similarly, Hermès’s iconic window displays, designed by Mumbai-based architect Rooshad Shroff, blend Indian aesthetics with French luxury.
“We are an emotional and proud country, and many ads reflect and play this up,” Bhattacharya adds. She also notes that such projects must take a digital approach to any initiative in India, referencing Dior’s Instagram reels, which showcase Indian craftsmanship and textiles. “This connected the brands with a vast and savvy audience.”
Bvlgari not only has Indian actress Priyanka Chopra as its global ambassador, but also launched a mangalsutra sautoir necklace for women and a kada B.zero1 bangle for men, each rooted in Indian tradition. The maison has worked closely with key opinion leaders on social media campaigns for these products, such as actor Ayushmann Khurrana and Indian stylist and costume designer Anaita Shroff Adajania. Narrative-driven initiatives are pivotal to creating an emotional connection with Indian consumers, says Babin.
“Brands that have successfully entered the Indian luxury and fashion market have embraced the country’s vast and dynamic cultures, integrating these elements into their products and manufacturing processes in an ethical, sustainable and culturally appropriate manner,” observes Fflur Roberts, head of luxury goods at market research firm Euromonitor.
As the report’s title suggests, brands must think “beyond the cart”. Brands that wish to succeed in India’s evolving market must move beyond traditional strategies. In India, luxury isn’t just about what you buy, but the story it tells.
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