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India’s luxury market is becoming a focal point for global brands due to its rapidly growing affluent population, cultural richness and evolving consumer tastes. Luxury players are increasingly tailoring their offerings, launching exclusive collections and collaborating with local talent to meet the needs of Indian consumers. With the Indian wedding industry booming and the first luxury department store set to launch, the region’s luxury sector is on the verge of significant growth, driven by demand for both high-end fashion and immersive shopping experiences.
While China endures a time of economic uncertainty, Europe and the US see a slowdown in luxury consumption and Russia remains under sanctions, India has emerged as a beacon of opportunity. The Reserve Bank of India has projected that the region’s luxury market will grow between 6.5 and 7 per cent year-on-year in 2025.
It’s small compared to other luxury markets, but many brands recognise India as a market they cannot afford to ignore. In a sign of its commitment, Louis Vuitton last year opened its largest store to date in India at over 7,000 square feet. This year, Aquazzura and Golden Goose launched flagships in the country, Chanel and Canali hosted major events, and Tod’s collaborated with Indian couturier Rahul Mishra on an exclusive capsule collection.
“The luxury sector in India is growing very fast, and new brands are opening stores every day. We have a big retail customer base online, so we see potential, and I am happy to have finally arrived here,” says Edgardo Osorio, founder and creative director of Aquazzura. “Women in India love to dress up and attend lots of events and weddings. She’s already our client, so it was a logical next step for us.”
Darshan Mehta’s recent resignation as CEO of Reliance Brands Limited (RBL), India’s largest luxury player, signals a significant leadership change at a pivotal time for the market. A partner of almost 100 international brands in India, including Burberry, Valentino and Giorgio Armani, his departure underscores how luxury in the country is at an inflection point.
Kalyani Saha Chawla, luxury consultant and former VP of communications and marketing at Dior India — who was a part of the most recent season of Netflix reality show Fabulous Lives Vs Bollywood Wives — worked closely on the launch of Golden Goose in India. She believes more brands will consider entering the market independently in the next few years, working closely with local operational and marketing experts. “It’s very encouraging to see how much India is now attracting international brands, especially after a few years of stagnation. Brands that were once plateauing in India are now revitalising their presence.” However, she adds that brands require a sizeable marketing budget to reap the rewards.
There are some key challenges international brands should be aware of when entering the market, including strict regulations that require joint ventures with local partners, as seen in Galeries Lafayette’s partnership with Aditya Birla. The vast size of the market and underdeveloped infrastructure pose logistical hurdles, complicating timely product delivery. Additionally, the country’s regional diversity influences local tastes and cultural preferences, such as the high demand for traditional bridal jewellery, giving an edge to more homegrown brands.
India’s youth-driven consumer base — with Gen Alpha and Gen Z expected to account for 56 per cent of consumers by 2040 — demands tech-savvy strategies tailored to their digital habits. The TikTok ban, which was put in place by the Indian government in June 2020, further necessitates adapting social media and e-commerce approaches to India’s unique digital landscape, says Marguerite Le Rolland, head of footwear and apparel at market research firm Euromonitor. However, she adds that this youthful, digitally savvy and brand-aware population underscores India’s role as a future hub for luxury growth.
The luxury landscape in India is evolving rapidly, with Euromonitor projecting that the country’s “affluent” segment will grow by 129 per cent by 2030. “Despite the unique challenges of expanding into the Indian market, fashion players will increasingly compete to tap into the energy and fashion-conscious mindsets of Indian consumers due to the huge potential India offers as the world’s next giant consumer market,” says Le Rolland.
Connecting to the consumer
Recently, Dior announced Bollywood star Sonam Kapoor as global brand ambassador, and a few months before that, Gauravi Kumari, a member of the Jaipur royal family, was appointed as the region’s brand ambassador for Jimmy Choo. Industry insiders say several other luxury labels are shopping around for South Asian representation. “Indian customers are discerning and deserve to be taken seriously,” says Anjali Gaekwar, co-founder of luxury retail advisory Lighthouse and former country head at Christian Louboutin. “The brands that have understood this have got India right, and this is one of the reasons brands now want to include Indian celebrities in their representation. However, there is still a long way to go.”
She believes brands must place culture at the centre of their approach: “I think it is important to have a mindset that is constantly evolving with India’s culture, can anticipate the needs of the market, but doing this in a way that is true to the essence and values of the brand rather than hopping on a bandwagon,” like launching an India-inspired collection or a Diwali edit that seems somewhat inauthentic.
Tod’s first entered India in 2008. “[Since then], we’ve seen a shift from fluctuating interest to sustained demand, driven by a growing number of high-net-worth individuals and a younger generation that seeks meaningful luxury,” says Jean-Sébastien Berland, general manager for the Middle East, India and Africa at the Italian luxury house. This led to its collaboration with Rahul Mishra, which, unlike other India-inspired projects, was a global launch with events in London, New York and Dubai.
“Partnering with Rahul Mishra was a natural decision for Tod’s, aligning with our commitment to creativity and craftsmanship. At Tod’s, we believe in collaborations that tell authentic stories, and this partnership was an homage to Indian couture and heritage, brought to the global stage,” says Berland. “Young generations also connect better with brands pursuing ethical practices, preserving heritage craftsmanship and enabling exclusivity or personalisation.” Following the success of this collaboration, Tod’s (whose franchise partner in India is RBL) is pushing further personalisation services on iconic products like its Di bag and Gommino driving shoes.
This could also explain why more luxury brands are spending on grand activations. Recently, menswear brand Canali celebrated its 90th anniversary in Mumbai, while Chanel presented an exclusive preview of its cruise 2025 collection at a gallery in New Delhi, marking the maison’s first major event since its launch into India in 2005. Brands are realising the Indian customer wants to be included in the conversation, and that means brands need more than just a physical retail presence. Gaekwar believes the brands that will succeed in 2025 are those that “make sincere efforts to understand the culture and translate it into meaningful products and narratives”.
Aquazzura, which opened its first store in India just a few months ago inside New Delhi’s The Chanakya Mall, collaborated with Jaipur-based interior designer Marie-Anne Oudejans to create a unique space in the brand’s signature aqua shade, making the store an eye-catching destination.
“I’ve always been inspired by India’s rich cultural heritage, particularly Rajasthan’s vibrant colours and architectural details,” says Osorio. “You can see these influences in some of our collections, including one of our Aquazzura Casa home lines, which I named ‘Jaipur’. The connection between Aquazzura and India goes beyond just business — it’s a genuine appreciation for the culture, craftsmanship and aesthetic sensibilities that make India unique. For the future, there will also be shoe and bag styles inspired by this enchanting country and possibly even a capsule collection.”
Chanel now operates six stores dedicated to beauty in India, with four in the National Capital Region (Delhi and surrounding districts), one in Mumbai and one in Bengaluru. It also has three travel retail outlets at international airports in New Delhi, Mumbai and Hyderabad, with Bengaluru coming in due course, plus an e-commerce site in the country. “The Indian luxury market certainly seems poised for growth. Post-pandemic, client expectations have grown. Earlier, Indian clients were primarily shopping abroad, but we were able to change this perspective with our focus on providing the ultimate client experience in our local boutiques,” says Amit Goyal, head of India at Chanel.
He adds that there are discussions about future expansion, particularly in cities like Mumbai. Chanel’s fashion lines are currently only available at the Delhi store. “India is not a key fashion growth market yet, but it is growing,” says Goyal. “Since Chanel’s entry into the Indian market in 2005, the Indian luxury landscape has shifted substantially. The market has become more sophisticated, with clients seeking exclusivity.” According to Euromonitor figures, luxury apparel and footwear are expected to grow by over 9 per cent in India, making this market one of the country’s most promising. Additionally, eyewear and leather goods are both projected to see growth of over 5 per cent in the coming year.
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A match made in heaven
Since luxury brands first arrived in India, they have had their sights firmly set on the big, fat Indian wedding. The Indian wedding industry is currently valued at $130 billion, nearly double the size of its American counterpart, according to a report by investment bank Jefferies.
This year, Anant Ambani, the youngest son of Mukesh Ambani, chairman of Reliance Industries Limited and India’s richest man, married pharmaceutical heiress Radhika Merchant. The wedding, spread over seven months and rumoured to have cost $600 million, exemplifies the growing fusion of global high fashion brands with traditional Indian weddingwear. Merchant wore a custom-made Gianni Versace gown, as well as an archival piece from Dior, while her sister-in-law Isha Ambani created a viral fashion moment when she wore a custom designer sari by Schiaparelli.
International brands can very much be a part of the Indian wedding party. “The Indian wedding market remains an undeniably paramount pillar for luxury brands, with its vast potential for growth,” says Pushpa Bector, senior director and business head of DLF Retail, which operates luxury malls Emporio and The Chanakya. This is particularly important for accessories brands, with Christian Louboutin offering a dedicated wedding suite at its Mumbai store that features a range of bespoke pieces. Similarly, Aquazzura’s Osorio highlights that the New Delhi store pays special attention to its bridal selection.
“Today’s affluent bride and groom seek more than just opulent attire and exquisite adornments; they desire curated experiences that mirror their unique personalities and cultural heritage,” says Bector. “From bespoke bridal couture to private shopping experiences and tailored events, luxury brands must focus on crafting immersive journeys that resonate deeply with Indian traditions while offering a contemporary edge.”
Enter Galeries Lafayette
One of the key impediments to luxury growth in India has been the lack of suitable retail space. The Indian consumer seeks experiences, which means brands must offer the same merchandise as they do in Paris, London or New York. According to Saha Chawla, many brands made the mistake of not offering their full range when launching in India. “Merchandising is key, and brands must realise that what is available in other key markets should also be available in India while still being respectful of the local consumer’s preferences.”
While cities like Kolkata, Bengaluru and Mumbai have boasted luxury malls for over a decade now, with RBL opening Jio World Plaza in Mumbai’s Bandra Kurla Complex last year, the real game changer in 2025 will be the launch of two Galeries Lafayette outposts. The opening, in partnership with Indian conglomerate Aditya Birla Group, will mark the arrival of the country’s first luxury department store.
“[The first store in] Mumbai will serve as our cornerstone, setting the paradigm for luxury retail in India,” says Sathyajit Radhakrishnan, president of international brands at Aditya Birla Fashion and Retail. “Following closely, New Delhi will host our second flagship, while we explore other cities. Galeries Lafayette India will redefine the retail experience, launching over 200 brands, many debuting in the country exclusively. This includes global icons alongside curated collaborations with Indian designers, celebrating the synergy between tradition and innovation.”
The Mumbai store, located in the Fort heritage district, will span 90,000 square feet and offer personal styling and high-end dining experiences. It will be a neighbour of Hermès and Christian Louboutin, as well as the flagship of Indian designer Sabyasachi. The new Galeries Lafayette will give niche and independent brands, who are perhaps looking to invest in a flagship post, a chance to enter the market.
“The launch of Galeries Lafayette is unequivocally a game changer in the luxury landscape of India,” says Rahul Prasad, managing partner of Pike Preston Partners (Asia), an advisor to Galeries Lafayette and Aditya Birla. “In most markets — markedly the GCC [Gulf Cooperation Council], but also Europe and America — luxury department stores compete for market share by offering a superlative customer journey and storytelling. Being the first entrant, the competitive advantage is exponential for Galeries Lafayette India.”
Looking ahead, the future of retail in India lies in experiential engagement, digital innovation and a commitment to sustainability, says Bector. “The Indian consumer is no longer just seeking luxury; they aspire to a seamless fusion of heritage, creativity and purpose. India is not merely emerging on the global luxury landscape — it is setting new benchmarks for what luxury retail can achieve.”
“India is uniquely positioned at the intersection of tradition, aspiration and economic momentum,” adds Radhakrishnan. “While factors such as a growing affluent population, the grandeur of Indian weddings and a cultural affinity for elegance contribute to the appeal, the most compelling factor is the evolving consumer mindset.”
Key takeaway: The next few years appear promising for luxury brands in India. However, that doesn’t mean it will be without its challenges. India is a country with unique dressing codes, a flourishing homegrown designer scene and such vast diversity that each state is almost like its own country. To succeed, one must truly understand India. Having the right retail strategy and tapping into the expertise of local talent is vital.
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