Decoding Indian Luxury Market in 2030

Decoding Indian Luxury Market in 2030

India's luxury market is projected to expand to 3.5 times its current size, reaching the US $85 to $90 billion mark by 2030. Indian market is well poised to see positive growth through the economic development, well- being of its people, greater connectedness and policy reforms. It will offer plethora of opportunities for luxury companies to serve the young, affluent, connected and confident Indian consumers.

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Here are the 6 major trends that can help luxury companies to envision the future of Indian luxury market :


1.???? A more connected India: In India, internet users are expected to increase from the current 820 million to around 1.1 billion by 2030, as per the report by World Economic Forum. Democratization of internet access will provide huge opportunity for luxury brands to reach consumers in interiors of India which otherwise would have been a great challenge for luxury brands to tap such a dispersed and fragmented Indian market. ?

Note: In future, e-commerce will play a major role in bringing luxury in the forefront.

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2.???? Growing middle class: It is predicted that 140 million middle-income households will be added to India’s economy by 2030. Over the next decade, 80% of incremental spend will be driven by middle-income consumers. These consumers will particularly climb up the ladder and demand for better products and services. Therefore, luxury companies should offer huge variety of ‘masstige’ brands in categories such as apparel, accessories, watches, handbags and personal care products.

?Also, spending on entertainment, health and fitness, travel and dining out will substantially increase which will provide immense opportunities for global high-end players to penetrate in these segments in India. For instance, a research by Bain PRICE estimated that dining out could well be a $400 billion opportunity in 2030.

Note: Luxury marketers cannot ignore middle-class consumers as they will be the growth engine of Indian luxury market.

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3.???? Millennials will be key luxury driver: India is one of the youngest populations in the world and it will continue to remain till 2030 with average age of 31 as opposed to its Western (40 in the USA) and Eastern (42 in China) counterparts. India will add more breadwinners to the world than any other nation. This population will be reared in more confident and open India and thus, will aspire to live a better life and splurge money on discretionary items, unlike their previous generational cohorts. Looking ahead, this favorable demographics will drive strong luxury consumption growth.

Note: This generation will want luxury to be more meaningful and reflect their individuality and values rather than just being a symbol of status.

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4.???? Rise of Gen Z: By 2030, India is estimated to have around 370 million Gen Z consumers between the ages 10-25. For them, digital will be the ‘new norm’.? They will embrace tech-driven consumption models. They will have a distinct set of values and beliefs as compared to Gen Y. This segment will redefine the rules of the luxury market. Luxury companies need to pay close attention to this cohort as they will be the influencers for future. Gen Z will choose brands that are ethical, socially responsible and transparent. They will look for more brand interaction and will have greater influence of social media than traditional marketing channels while making purchase decisions.

Note: Luxury companies should work towards development of technologies such as IOT, AI and VR to be able to provide more opportunities to new-age buyers for brand engagement.?

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5.???? Luxury going to smaller towns: As per recent report by World Economic Forum, India’s top 40 cities will constitute of $1.5 trillion market by 2030. With the increase in purchasing power, urbanization, brand awareness, brand consciousness, social media, easy access and aspirations, Indian consumers residing in large as well as small towns will be willing to spend more on luxury items. There will be tremendous change in consumers’ outlook and purchasing patterns. From high-end luxury automobiles, upscale restaurants to affluent lifestyle brands, there will be ample demand coming from different segments across India.

Note: Luxury companies looking for growth will require to reach a highly spread continuum of large and small towns.

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6.???? Tech-led Business Models: New business models driven by technology such as rental services, subscription models, etc. will be future business models in India. As per a report by PricewaterhouseCoopers, the rental market will reach $335 billion by 2025 globally and Indian share is estimated to be around $35billion. Young consumers believe in ‘usership’ than ‘ownership’. They seek for experience, convenience and variety. Therefore, more and more such users will favor sharing economy.

Note: With evolving consumer attitudes and high internet penetration, luxury consumption on sharing basis will be next big thing in the Indian market across categories including watches, apparel, bags and automobiles, to name a few.

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As per Euromonitor Report, 77% of India’s populace will include millennials and Gen Z in 2030. These young, affluent, tech-savvy and buoyant consumers will pave the way for further innovation in products, services and business models in luxury realm.

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Robert Esser

生活时尚 | 时装 | 消费品 | 电子商务 | 零售总裁 + EDBA 学生

6 个月

I have cited a number of Dr. Sheetal Jain 's papers in my own work on success / failure factors of global fashion brands in emerging markets. She is a must-follow as India develops modern trade retail and becomes a meaningful driver of luxury growth in the next decade.

Chirag Inderjeet Taneja

Director @ ONE Advertising | IIM Bodhgaya '26 | Marketing nerd on a mission to help brands and businesses thrive | Web3.0 Marketing

6 个月

Well explained Stats. The current Counterfeit Luxury Market is 4 times the Luxury Market. So, it might be a threat to the future of Indian luxury market?

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Simon Joseph

Business Strategist | Digital Marketing | Brand Storyteller | Consumer Experience | Innovative Brand Growth Solutions.

6 个月

Spot on Dr. Sheetal Jain one thing I would add is the potential of 300 million young Indian woman entering the work force that will boost household disposable income. India is a fantastic opportunity for luxury brands and Luxury is no foreign concept in India.

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