Is India ready for luxury shopping?

Decoding India's luxury infatuation and opportunities for consumer brands!

Welcome to the 20th edition of Klub Digest! In this edition, we deep dive into India's luxury revolution, from Tata CLiQ and Aditya Birla Fashion Retail to Reliance’s gigantic Jio World Plaza, unravelling the rise of brands, collaborations, and consumer dynamics.

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India’s luxury market is set to hit a whopping US$200 billion by 2030. Did you know that over 1,300 people in India have a net worth of over INR 1,000 crore? That’s a 76% increase in the last five years. The Credit Suisse Global Wealth Report thinks we will have twice as many millionaires, hitting 1.6 million by 2026.

And get this – inflation isn’t even knocking on India’s luxury market door! While other things are getting pricier, the rich are just getting richer. So, why does this matter?

Well, it’s boosting the demand for posh brands. Rich people love those high-end things more than ever.

How can we be so sure about all this, you ask?

Simple as pie – more mega-rich people, more millionaires, and a fancy market that's rocking steadily.

It's like they say, 'When the rich get richer, fancy things get fancier!

Adding a cherry on top, there are tangible examples of this flourishing luxury landscape.?

1. Take the collaboration between Tata CLiQ Luxury and TimeVallee, a Swiss luxury watch and jewellery store. They teamed up to launch a digital boutique showcasing big names like Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, and Roger Dubuis.
2. Another power move comes from Aditya Birla Fashion Retail, who joined forces with the French luxury retailer Galeries Lafayette. This partnership boasts over 200 luxury brands, including big shots like Armani, Christian Dior, and Prada. It’s being hailed as a 'coming-of-age moment for Indian luxury.

But it continues beyond traditional stuff like clothes and jewellery.

1. For instance, Elle Decor and Pottery Barn have set foot in India.
2. Dutch luxury hair cosmetics company Keune partnered with Maison D’ Auraine to make a splash in the Indian market.

The West is also adapting to our taste buds and cultural vibes.?

1. Louis Vuitton rolled out the Rani Pink line, Dior held a show in Mumbai, and Bvlgari introduced the mangalsutra – all tailored to what we love.

And it's not just on the digital front; we're also seeing serious investments in physical spaces.?

1. Take the Jio World Plaza in Mumbai, a hub for 66 luxury brands, showcasing a mature and sophisticated side of India’s evolving luxury market.

1. To top it off, Western luxury brands are feeling the love with Michael Kors expanding to seven stores, and platforms like AJIO Luxe, Tata CliQ, and The Collective adding hot brands like Self Portrait and Cult Gaia to keep up with the growing appetite for Western luxury in India.

Now, let’s discuss the continuous evolution of Indian customers with time.

How is consumer evolution shaping the dynamics of the luxury market?

The way people see and engage with luxury is going through a big makeover.

It's not just about big names anymore. Consumers want the whole package – the brand's story, values, and purpose. They're drawn to brands that match their lifestyle and beliefs.

Exclusivity and standing out from the crowd are big deals. Limited availability, customisation, and innovation are becoming the stars of the show for consumers.

How are brands embracing luxury in response to Indias growing demand?

As India's love for luxury grows, brands are stepping up their game to meet the demand. Here's how they're doing it:

1. Elevating product excellence: Brands are going all out, adding premium features like top-notch quality, innovative designs, enhanced functionality, and stellar performance.Titan is a prime example, revolutionising the watch industry with its innovative and diverse range of products, such as the Edge, the world’s slimmest watch; the Raga, a collection of elegant and feminine looks; and the Juxt, a smartwatch that combines technology and style

1. Exclusive collaborations and limited editions: Enter the world of exclusive collaborations – brands teaming up with celebs or influencers to create limited-edition collections.In partnership with H&M, Sabyasachi dropped the Wanderlust collection, bringing together ethnic and bohemian styles in the world of affordable luxury.

1. Personalised services: Brands are going personal, offering tailored services like engraving, monogramming, or bespoke options. Take Tanishq’s Mia service, allowing customers to customise their jewellery with designs, metals, stones, and personal messages.

1. Diversification into varied segments: Brands explore new territories and categories. For example, Good Earth, a home decor brand, diversified into the luxury apparel segment with the launch of its Sustain line, which offers handcrafted clothing made from natural fabrics and traditional techniques. Good Earth also ventured into the luxury wellness segment by launching its Paro line, which offers holistic products and services for the mind, body, and soul.

The evolution isn’t just in products; it's in how we shop.

Luxury retail platforms are popping up, curated for discerning shoppers seeking international brands.

This chronological lineup illustrates how these luxury retail platforms, each with its unique approach, have responded to evolving consumer preferences and flourished and expanded in tandem with the changing landscape of luxury shopping.

How can Indian entrepreneurs thrive in the growing luxury retail market?

The expanding luxury retail market in India is a goldmine for Indian entrepreneurs, ready to capitalise on the wave of creativity, innovation, and passion.

Here's how they can make the most of it:

1. Affordable aspirations: Dive into the world of Below The Line (BTL) brands, catering to the aspirational middle class with affordable luxury. Michael Kors, Self Portrait, and Cult Gaia have paved the way in India, charming consumers with attractive designs, top-notch quality, and reasonable pricing.
2. Wedding wonders: The wedding market in India is a paradise for luxury consumption. Indian weddings are grand affairs; consumers spend no expense on designer outfits, jewellery, accessories, gifts, venues, catering, photography, and more. Entrepreneurs can tap into this by offering custom and personalised solutions that cater to the diverse and evolving needs of the wedding market.
3. Digital allure: Ride the digital wave by leveraging the power of e-commerce and digital platforms. Platforms like Ajio Luxe, Tata Cliq Luxury, and Elitify are making luxury accessible, offering a curated selection of top-tier brands. Digital media outlets like The Voice of Fashion, Vogue India, and Luxury Connect provide information, insights, and trends, creating awareness and shaping the narrative in the luxury sector.

As India's luxury market blossoms, entrepreneurs can thrive by offering affordable dreams, capturing the charm of weddings, and riding the digital wave. Remember, 'Take the chance or lose the opportunity.' So, dive in and make your mark on this glamorous journey!

Meanwhile, if you're looking for growth capital to fuel your consumer brand's growth – whether for inventory management, marketing initiatives, operational expenses, or overall business expansion – and desire a growth partner who celebrates your successes as their own, #JoinTheKlub, join us here .