Niche brands thrive in India with subdued luxury, eschewing opulence

India's luxury market is experiencing significant growth, fueled by an expanding aspirational upper-middle class, increasing disposable incomes, and a shift towards experiential consumption. Home-grown brands like Tanishq have emerged strongly, with a 16% market share in the luxury segment, surpassing global giants like Dior, Chanel, and Gucci. International brands like Laderach, Galeries Lafayette, and Balenciaga are strategically entering the Indian market, recognizing the rising trend of premiumization.

The luxury landscape in India witnessed a pivotal moment with Dior's pre-fall 2023 show in Mumbai, marking a "coming-of-age" event that sparked increased interest among local clientele. Bloomberg forecasts a substantial increase in individuals with a net worth exceeding $1 million in India by 2027, making it an appealing destination for high-end labels.

Luxury brands are adopting a "quiet luxury" marketing strategy, emphasizing subtle and authentic experiences over extravagant displays. Digital platforms, especially social media and influencer marketing, play a crucial role in connecting with the target audience. Brands like Chanel are creating community pages on Instagram to foster engagement.

The digital medium offers high returns on investment and precise targeting, aligning with the exclusive nature of luxury goods. Brands are also showcasing commitments to sustainability and social causes to build trust. With the luxury market projected to reach Rs 82,186 crore by 2027, brands are customizing offerings and marketing strategies for the Indian audience, demonstrating resilience to inflation and catering to unique tastes and preferences.