India Set to be Bvlgari’s Next Global Luxury Hub, Says CEO

Italian luxury brand Bvlgari is shifting focus to India, envisioning it as the next powerhouse for global luxury demand. CEO Jean-Christophe Babin expressed his confidence in India’s potential to drive luxury market growth, attributing it to the country’s young and experimental consumer base. He noted that India, with its dynamic youthful population increasingly interested in a mix of Western and Indian luxury styles, presents unique growth opportunities. Babin described India as a “booster market” for luxury, potentially playing a role akin to the one China has held in the luxury sector over the past two decades.

India's expanding luxury appetite is fueled by young consumers eager to blend traditional Indian aesthetics with European sophistication. “India is becoming more globalized, and young clients here are keen on merging the best of Indian and European luxury,” Babin shared in a recent interview. According to him, this open-minded approach and enthusiasm for fusion fashion are what make India the ideal market for luxury brands.

While Bvlgari is eager to expand its presence in India, high import duties on luxury goods pose a significant barrier. Currently, these duties make the pricing of luxury items substantially higher in India than in other countries. Babin emphasized the importance of reducing these taxes to make luxury more accessible, suggesting that this step could be mutually beneficial. He pointed to the example of a recent trade agreement between India and Switzerland, where India agreed to reduce basic customs duty on Swiss watches under the India-EFTA (European Free Trade Association) Trade and Economic Partnership Agreement signed earlier this year. Over a seven-year period, this duty will drop to zero, benefiting both nations.

Babin called for a similar agreement for the broader luxury industry, expressing hope that Indian policymakers and industry stakeholders could collaborate to reach a solution that fosters the luxury sector’s growth. According to Babin, “Luxury is an industry that creates jobs, generates GST, and contributes to real estate revenues. It's highly beneficial to the host country.” He added that while Bvlgari’s current prices are competitive despite high import taxes, a reduction in duties would help stimulate demand even further.

India’s rising luxury potential isn't only about fashion but also about lifestyle changes and investment in quality products. Bvlgari is prepared to make short-term sacrifices in its profit margins to build a strong foundation in the Indian market. “We are willing to invest now,” Babin explained, “even if it means facing high duties and taxes initially. This market’s long-term potential makes it worth it.”

While Bvlgari doesn’t expect Indian trade policies to shift overnight, the company remains optimistic about the possibility of a policy evolution that recognizes the luxury industry’s contribution to India’s economy. With high hopes for India’s role in the global luxury market and increasing efforts to connect with younger clients, Bvlgari is eager to pave the way for a more accessible, tax-friendly luxury experience in India.