India's Luxury Market Thrives Amid Economic Growth and Changing Aspirations

India is poised to become the third-largest economy by 2027, with a fast-growing upper middle-class and high-income groups, leading to the highest growth rate of High Net Worth Individuals (HNIs) in Asia.

Luxury Market Growth

Increasing incomes are driving luxury market growth, projected to reach $30 billion by 2030, with 60% of consumersexpected to spend on luxury annually.

• 77% of Indian consumers show no intent to delay major purchases.
• 70% splurged at least once in the past two months.

Emergence of Non-Metro Markets

• Tier II and III cities contribute over 60% of online orders.
• Internet access and e-commerce have bridged the gap, providing luxury brands and value-added services to non-metro consumers.

Luxury Brand Expansion

Global luxury brands are launching in India with curated offerings tailored for festive and wedding seasons, while Indian D2C brands gain traction for their quality and global designs.

Brands target Gen Z and Alpha generations, introducing entry-level luxury options to nurture lifelong customers.

Luxury Real Estate Growth

• Ultra-luxury home sales doubled in 2023.
• Second and retirement homes are set to cross a $4 billion market by 2026.
• Home lifestyle preferences are shifting to interior designers and premium furnishings, with consumers frequently upgrading their furniture and decor.

Travel and Experiences

• Revenge travel post-COVID has evolved into a lifestyle trend.
• 64% of consumers prefer spending on travel and experiences.
• Personalized travel offerings have increased repeat purchase rates in the hospitality industry.

Future of Luxury Retail

• Generative AI powers personalized content and virtual experiences, creating differentiated shopping journeys.
• Community building, storytelling, and engagement beyond purchase are vital to brand success.