Multiple luxury consumer goods brands are entering the Indian market in anticipation of the upcoming festive season. This move aims to tap into the increasing affluence of Indians with higher incomes, leading to higher discretionary spending even in smaller towns. Factors such as exposure to global trends, interest from a younger demographic, and the post-pandemic economic upswing are driving this trend.
Among the new brands entering the market are Swiss luxury chocolate maker Laderach, French luxury retailer Galeries Lafayette in partnership with the Aditya Birla Group, and Spanish luxury fashion house Balenciaga SA in collaboration with Reliance Brands. Other brands, including Swiss luxury multi-brand watch and jewelry boutique TimeVallee and Dutch haircare salon services brand Keune, are also planning their debuts. These brands are targeting the Indian market as economic growth slows down in China, with expectations of steadier growth in India.
Elias Laderach, the executive board member and chief creative officer of Laderach, expressed confidence in the Indian market, particularly in major cities. The family-owned luxury chocolate maker plans to establish five to seven stores in India over the next two years, in addition to selling through their own e-commerce platform.
The surge in global luxury brands can be attributed to a “K-shaped recovery,” where luxury products continue to thrive despite inflation and other economic factors. Santosh Desai, a social commentator and columnist, noted that the luxury market remains unaffected by inflation as consumers in this segment are less affected by inflationary trends. Aditya Birla Fashion Retail (ABFRL) has partnered with Galeries Lafayette to sell over 200 luxury brands in India. Reliance Brands is also expanding its partnerships with global brands like Valentino and Tiffany.
According to Anurag Mathur, a partner at Bain & Co., global brands are customizing their offers and marketing strategies for the Indian market. This includes product launches and initiatives tailored to the preferences of Indian consumers. The Credit Suisse Global Wealth Report predicts a significant increase in the number of millionaires in India.
Dutch luxury hair cosmetics company Keune recently entered the Indian market through a distribution and marketing partnership. The CEO of Keune sees substantial growth potential in India, particularly in the grooming sector. The brand will focus on premium salons across the country.
Bain’s Anurag Mathur recently discussed the growth of Michael Kors, which now has seven stores in India, along with the expansion of other luxury retailers such as AJIO Luxe, Tata CliQ, and Collective. These platforms are offering a broader range of brands, including Self Portrait and Cult Gaia. The luxury market in India is also witnessing the emergence of new categories, such as home decor, with the arrival of stores like Elle Decor and Pottery Barn.
Tata CLiQ Luxury, in collaboration with TimeVallee, has expanded its digital boutique in India to include luxury timepieces from brands like Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, and Roger Dubuis.
While new luxury brands enter the Indian market, established ones are also expanding their presence. Gucci, the Italian luxury fashion label, recently named actor Alia Bhatt as its first Indian global ambassador.
