The Future of Luxury in India (2024)

Luxury has had a unique journey in India and the recent developments are a shining testament for its current progression and promise.

The appetite for luxury is indeed growing at an unprecedented pace as are the number of millionaires in India which is estimated to double from 796,000 in 2021 to 1.6 million in 2026 as per Credit Suisse Global Wealth Report.

To cater to this evolution there is a flurry of brands making their debut in India and the existing ones have been expanding and strengthening their presence in the country. Global brands are now tailoring their offers and marketing campaigns to India, Louis Vuitton launched a Rani Pink line, Bvlgari introduced the mangalsutra and more recently a Bvlgari Kada bangle launched specially for the India market. The opening of Jio World Plaza, luxury’s latest hotspot in Mumbai and soon Aditya Birla Fashion Retail (ABFRL) in partnership with French luxury department store chain Galeries Lafayette are slated to open doors in the country and a steady spurt of luxury brands are expected to launch by 2025 in the country.

However, it’s not just global luxury brands that are having their moment. India is also seeing a rise in homegrown luxury that are making a mark not only in the country but globally and it is no longer limited to the bridal market.

Couture stalwarts such as Rahul Mishra, Gaurav Gupta and Sabyasachi and even growing brands like Dhruv Kapoor have successfully given India a place on the global luxury map with global retail presence, international shows, collaborations and offerings that speak to a global customer.

The current evolved and expanded market regards PR and integrated communication as a significant function presenting unique opportunities for driving brand equity and strategically engaging with the luxury audiences with a more glocal and elevated lens. It is experiencing a paradigm shift where riding alongwith exclusivity, technology, sustainability, and inclusivity are becoming crucial puzzles in strategies.

Some top trends we will see that brands can explore to their benefit:

1. Switching up Influencer matrix: The luxury consumers are digital natives, both global and homegrown luxury brands are aggressively leveraging meta and digital platforms to reach their target audience. Brands looking at digital first PR campaigns need to actively engage in local partnerships with an influencer matrix both through earned and paid media lens that goes beyond mega, macro, micro and nano content creators to tapping different creative and achiever cohorts that resonate more authentically with the brand and thereby enhance the efficacy of communicating their brand story, aid brand perception and credibility.

2. Focus on experiential outreach: Brands need to focus lot more on personalised brand immersive experiences to engage the evolved luxury consumer and showcase their products and services in a unique and interactive manner. Whether it's hosting exclusive events, providing VIP access to limited collections, novel ways of integrating AI, VR or integrating entertainment, brand engagement elements within the retail space, they should aim at making every customer interaction into an experience to remember. These events not only give consumers a first-hand experience with the brand but bolster emotional connections and generate positive word-of-mouth publicity while developing genuine brand understanding and loyalty.

3. An eye on sustainability and circular economy: Sustainability isn't just a buzzword but a fundamental commitment for luxury brands. The luxury consumers of today are more conscientious about their ecological footprint, and they expect the same commitment from the brands they consume. They care for eco-friendly packaging to responsibly sourced materials and now luxury brands have to reflect the changing values and preferences of this discerning and environmentally conscious consumer in every outreach. The shift towards sustainability is not only environmentally responsible but also aligns with the growing desire for timeless, high-quality pieces that can be enjoyed for generations. This year we will see a rise in consumers adopting the concept of circular fashion which promotes resale and recycling of luxury items.