Luxury Retailing in India: From Store Openings to New Retail Formats, India’s Growing Affluence Drives Luxury ExpansionOctober 22, 2023
Trends in Luxury Retailing in India
Global luxury brands are taking note of India’s growing affluence, spurring greater discretionary spending. This has prompted some of them to curate India-exclusive collections.
New retail formats like metaverse and NFTs also offer new opportunities to connect with younger consumers. However, fakes can dilute brand image and whittle away sales.
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Luxury brands are resuming store-opening plans, revamping traditional boutiques, and exploring new retail formats. Examples include experiential flagships with architectural delights, concierge service, and cafes that connect with younger consumers. In addition, e-commerce platforms such as AJIO Luxe and Tata CliQ are expanding their luxury portfolios by partnering with international luxury fashion brands. The metaverse and NFTs also offer new ways for brands to build awareness and connect with younger consumers. The Covid-19 boom and rising incomes in Tier 3-4 cities are driving increased discretionary spending by Indian consumers.
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Luxury fashion is booming in India with coveted brands expanding to new stores and new categories. Internationally renowned designer Michael Kors, for instance, now has seven Indian stores while AJIO Luxe and Tata CliQ have diversified their portfolios to include home decor and apparel. Meanwhile, jewellery continues to shine and watches and wearables have reached milestones in their sales.
Retailers such as Galeries Lafayette from France, Swiss luxury multi-brand watch and jewellery boutique TimeVallee, and Dutch haircare salon services brand Keune are set to open in the country. This expansion is a reflection of India’s growing exposure to global trends and a post-Covid-19 boom, analysts say.