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For many observers, 2023 was a defining year for the global luxury sector’s development in India. A pivotal weekend occurred in March, with a pre-fall 2023 Dior show in Mumbai that celebrated the contribution of Indian artisans to the brand. That same weekend also saw the three-day launch of the Nita Mukesh Ambani Cultural Centre by the Reliance Foundation, drawing an international crowd to Mumbai, including the likes of Gigi Hadid and Zendaya.
“These two events happening on one weekend put India on the map in terms of hosting world-class events,” says Darshan Mehta, president and chief executive of Reliance Brands Limited (RBL), India’s largest player in the luxury market.
Next up, in November, was the opening of Jio World Plaza (JWP) by Reliance in Mumbai. India’s largest luxury shopping centre spans 750,000 square feet across four levels. Saint Laurent, Valentino and Tory Burch were among the international brands opening stores in the centre — their first in the city. And then in December, Ralph Lauren teamed up with the Princess Diya Kumari Foundation for a high-profile fundraiser in Jaipur. (Ralph Lauren’s Indian retail operation is run by Aditya Birla Fashion Limited.)
Can 2024 continue the remarkable momentum of last year?
Fflur Roberts, head of luxury goods at Euromonitor International, sees plenty of room for growth. “India’s luxury market exhibits hugely promising growth potential,” she says. “India’s luxury sales are almost 20 times smaller than China, and its per capita expenditure on personal luxury is tiny in contrast.”
The sector is already on the right track, she adds, “The personal luxury market in India experienced a robust compound annual growth rate of just over 9 per cent between 2021 and 2023, highlighting a remarkable post-Covid boom. This growth surpasses the single-digit rates observed in many other regions.”
Brand optimism
International luxury brands are also upbeat about India’s potential. This year kicked into gear with Bulgari’s launch of its B.zero1 Kada, which pays tribute to the traditional Indian Kada bracelet. “India is undeniably emerging as a crucial and lucrative market for Bulgari,” notes Jean-Christophe Babin, CEO of Bulgari. He highlights the brand’s commitment to India, referencing the introduction of the Bulgari mangalsutra (meaning “auspicious thread” in Sanskrit, the mangalsutra is placed around a bride’s neck by the groom to symbolise their bond) in 2021, with Priyanka Chopra Jonas as its brand ambassador. “Since Bulgari’s debut in India in 2014, we have witnessed a remarkable transformation in the market,” he says. “Initially met with curiosity, the luxury landscape has evolved significantly.”
Bulgari is not the only brand looking more closely at India. Cartier is expected to announce a tie-up with Indian designer Rimzim Dadu, who has teased on social media “a collaboration… with an exhibition later in the year”.
Events aside, the opening of JWP is being described as a game-changer. Mehta likens it to the arrival of Plaza 66 in Shanghai, China, with both shopping centres symbolising the emergence of luxury hubs in respective countries. And there’s more on the way. “Post the opening of the Bulgari boutique at the Jio World Plaza, we are looking to expand into several cities,” says Babin.
The retail units in JWP are fully occupied, yet international luxury brands are now looking for other opportunities to open up shop in India. Mehta shares that he just concluded a meeting with “a big French luxury brand… All going well, we will soon announce a partnership.”
The timing of the opening of JWP was propitious. India, which became the most populous country in the world in 2023, is now also the world’s fifth-largest economy. It’s a country with a young population, too, ready to spend. Abheek Singhi, chair of practices at Boston Consulting Group India, says: “Our research has shown that the younger generation is more confident of the future and also has a greater propensity to consume. A critical mass of elite or affluent households has been reached now — and most importantly, the actions of the supply side players (brands).”
What India still lacks is a luxury department store, but Aditya Birla Group is poised to introduce Galeries Lafayette to the market. An initial store of 8,000 square metres in downtown Mumbai is expected to open either late this year or in early 2025, with a second store in Delhi also on its way.
Still work to do
However, observers of the Indian fashion scene insert a note of caution: many wealthy Indians still prefer to shop abroad. Fashion influencer Jyoti Babani (she and sister Sneha go by @snejyo on their joint Instagram account) is a regular attendee at international fashion weeks and believes the domestic shopping experience has been somewhat subpar. “Unfortunately, the gatekeepers of the luxury business in India failed to generate demand or create attraction and want for luxury brands in India to their full potential,” she says.
One new shopping centre won’t resolve this perception — luxury brands have faced challenges in India for the first two decades of this century. “There was a huge expectation of India being this great market, but it never really did emerge,” says Kalyani Chawla, founder of luxury homeware brand Rezon Silverware and former VP of marketing and communications at Dior India.
Political and economic uncertainties did not help; although there’s greater stability now with the current government, led by Prime Minister Narendra Modi, likely to win the next election. Roberts of Euromonitor notes that India is set to remain one of the world’s fastest-growing economies in 2024.
While at Dior, Chawla worked hard to collaborate with Bollywood celebrities and local media but felt that, generally, international brands were slow to integrate into the Indian cultural landscape and to send the right goods for the market. Over the last two years Bulgari, Louis Vuitton and Gucci have each stepped up and appointed brand ambassadors in India.
Babani would like to see luxury brands reach beyond “stereotypical” marketing tactics. “It was probably too early in time, but no brand has done as much justice to India as Chanel’s pre-fall 2012 Paris-Bombay collection,” she recalls. “To keep the aesthetic and codes of the brand intact while still being inspired by India was the perfect blend — a global luxury brand’s tribute to India.”
Roberts says Euromonitor’s research is encouraging for brands operating in India. “Indian consumers are less keen to hunt for bargains or to buy secondhand items compared to their global counterparts. Instead, they prefer branded goods (72 per cent versus 43 per cent globally) and to try new products and services (80 per cent versus 59 per cent globally). This bodes well for luxury brands.”
Indian designers are also seeing success in Europe, such as Gaurav Gupta and Rahul Mishra, who show at Paris Couture Week, as well as Dhruv Kapoor, a regular at Milan Fashion Week. There’s a rising fashion confidence among Indian consumers, notes designer Kapoor. “We have seen a shift in buying patterns in the last two years,” he says. “They know what they want, and they are not bothered about global trends or price.”
Rapid development is anticipated, with Boston Consulting predicting a spectacular 18 to 20 per cent growth for the luxury sector in 2024. That’s from a relatively small base, admittedly. Mehta of Reliance is confident that momentum is building, although he suggests the best is yet to come. “It’s safe to say the luxury story has just begun.”
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