OPINION
Indian luxury brands like Sabyasachi , Abu Jani Sandeep Khosla , and Manish Malhotra are gaining popularity both domestically and internationally , attracting a global clientele and marking a new era of Indian luxury .
India ' s pace of growth demands constant vigilance and strong local partnerships . Brands risk underperformance if they fail to keep their finger on the pulse , both physically and digitally .
In an era of diversifying populations , and with social media empowering more people to find a voice , ensuring your product and offer are culturally sensitive has never been more important .
The new luxury consumers India ' s digital transformation is on a meteoric rise . From UPI payments to online education , Indians are embracing a digitally dominated lifestyle . This shift places a premium on personalisation , with the young Indian consumer valuing self-expression more than ever . Brands must move beyond lip service and excel in execution to stay relevant , challenging traditional thinking and aligning with new paradigms .
This means embracing diversity , redefining exclusivity , committing to sustainability , engaging authentically in the digital space , and facilitating personal storytelling through brand narratives at every touchpoint .
The rise of premium beauty , scents , and skincare With China ’ s beauty market facing challenges , India is emerging as the new growth centre . Sephora ’ s partnership with Reliance Beauty & Personal Care last November exemplifies this shift . NielsenIQ data shows a 7.1 per cent year-over-year increase in India ' s beauty sales as of Q3 2023 , with fragrance sales jumping 17.6 per cent and skincare sales up 8.6 per cent . Beauty giants like L ' Oréal are investing in Indian beauty brands , and Sugar Cosmetics secured funding from LVMH-owned L Catterton .
Obstacles as enrichment opportunities Despite the global luxury market ' s expected growth , advanced economies like the US remain stagnant , and China faces macroeconomic headwinds . India , however , continues to shine . Mukesh Ambani ' s luxury mall in Mumbai , housing brands like Balenciaga and Gucci , and SMCP ’ s partnership with Reliance to expand into India , highlight the country ’ s burgeoning luxury market .
Is it India ' s time ? Victor Hugo famously said , “ There is nothing more powerful than an idea whose time has come .” For luxury brands , India ’ s time is now . The country ’ s growing disposable income and changing consumer preferences make it a prime market for luxury goods . The accessible luxury market in India is set to experience a compound annual growth rate of 13-19 per cent from this year to 2029 .
Key factors driving this growth include : 1 . Rising Middle Class : India ’ s expanding middle class , with increasing purchasing power , is actively seeking luxury products and experiences .
2 . Favourable Demographics : India has a young population with a significant proportion of young consumers willing to experiment with luxury products and brands . The younger generation is more open to exploring international brands and is driving the demand for luxury goods .
3 . Untapped Potential in South India : Expanding into South Indian cities like Bangalore , Chennai and Hyderabad offers competitive advantages and growth opportunities , as South India ’ s markets are poised for a major transformation : It ’ s a ►
Sabyasachi Bridal Couture 2024
August 2024 www . insideretail . asia 29