If luxury is dead, Indian buyers don’t know it

‘Luxury fashion in its flop era’ reads a headline in The Guardian. ‘5 Reasons The Luxury Market Decline In 2024 Won’t Recover In 2025’ goes another one in Forbes. ‘Obscene Prices, Declining Quality: Luxury Is In A Death Spiral’, declared The New York Times. Let’s admit it: we low-key love consuming controversial news items that predict the end of time. And if it’s one that anticipates the downfall of the rich and the rise of the proletariat? The justice of it all is exhilarating, and your Internet algorithm knows it’s what keeps you hooked. Before you know it, you’re sucked into an infinite loop of doomscrolling.

As we find ourselves overwhelmed by the global chatter of luxury slowing down, the scenario in India is, by contrast, optimistic. According to The Business of Fashion’s ‘State of Luxury’ report, the Indian luxury market is expected to grow between 15 and 20 per cent in 2025, fuelled by demographic and structural shifts. India’s UHNWI (Ultra High Net Worth Individuals) population is expected to grow 50 per cent between 2023 and 2028, making it the fastest-growing UHNWI population globally as new luxury malls and department stores, such as the Jio World Plaza and Galeries Lafayette, are increasing luxury real estate in tier-one cities. So, what’s driving the appetite for the finer things in this unique economy? According to prominent luxury buyers and brand leaders, it’s about world building, immersive experiences, and cultural resonance.

I see it, I like it, I want it, I got it

In 2024, India witnessed the arrival of several luxury retailers in major cities, including big names such as Aquazzura, and Dior’s first menswear store as well as trendier new-age brands such as Sandro, Maje, Maison Margiela fragrances, and Golden Goose sneakers. For the luxury enthusiast, shopping locally has more incentives than one.

Take Jaya Raheja, VP of design at K Raheja Group. A skim through her Instagram account serves up the most enviable couture pieces from around the world—vinyl Dolce & Gabbana dresses, a plethora of Bulgari Serpenti jewellery, a gold lattice-work Oscar de la Renta ensemble, and a chain-mail Paco Rabanne dress that she casually poses in with the Eiffel Tower in the background. Raheja has a personal shopper in France and she’s also spending her money at home. “Over the last few years, I prefer shopping in India; luxury apparel is becoming more available, and the pre-order model ensures I have new-season pieces in time. The prices are more competitive compared to Dubai or Singapore, and most major luxury brands share photos and send pieces at home for consumers to try on. This also allows me to truly enjoy my vacations while travelling, without it being focused on just shopping,” she shares. 

The availability of these brands closer to home also allows key consumers to satiate occasion-driven purchases in a more convenient manner. Content creator and luxury consultant Sonam Babani decided to switch up buying traditional jewellery for something she could wear every day and purchased the Juste un Clou ring from Cartier for Dhanteras. Similarly, fashion entrepreneur Pernia Qureshi experienced a pleasant discovery at the Aquazzura store—their metallic footwear proved to be the perfect match for her saris and lehengas during the wedding season.

The glocal lens

Unlike any other major luxury-consuming country, India operates on a unique cultural model, where traditional clothing is as revered and enthusiastically invested in as international luxury purchases—Raw Mango Benarasi saris are styled with Lady Dior bags, Anita Dongre sherwanis are blinged out with Patek Philippe watches, and Anamika Khanna jackets are donned over a trusty pair of blue jeans. For luxury brands entering the market, a cognisance of these diverse choices entrenched in tradition is vital. In a bid to court the consumer in a relatable manner, a few key brands have created customised offerings that promise cultural resonance. Case in point: Bulgari’s India-exclusive B.zero1 ‘kada bracelet’ early last year endorsed by Bollywood actor Ayushmann Khurrana. The accessory typically worn by men of the Sikh and Punjabi community as a totem of faith got a modern 18K yellow-gold iteration. The introduction of this piece supersedes the brand’s first-of-a-kind luxe mangalsutra, launched in 2021 with Priyanka Chopra Jonas as the ambassador.

Journalist and founder of GRS Consultants, Gayatri Rangachari Shah, seconds the need for specialised collections to establish brand loyalty. “Cookie-cutter offerings don’t work in India. Even McDonald’s had to tweak their menu before they launched their very first outlet in the country. Global brands need to be attuned to how we respond to colour and style. Hermès was ahead in the game with the launch of the special India-edition scarves and limited-edition saris. They retained this continuity with the opening of their second store in Mumbai last year. For the launch, the brand commissioned a series of special window installations that melded Madhya Pradesh’s Gond art with the house’s signature design elements. Today, consumers want to be part of a narrative, it’s not just a transaction. There needs to be a connection. We need high-touch,” she says.

From Spanish luxury porcelain brand Lladro making Ganesha sculptures since its arrival in India more than two decades ago, to Rahul Mishra’s most recent partnership with Italian leather brand Tod’s on a footwear and handbag capsule, the idea of a Western brand responding to India’s creativity establishes relevance, while the allure of a special collaboration available in small quantities earns brownie points amongst true luxury connoisseurs. Qureshi champions the power of exclusivity in retail: “I don’t like wearing what everybody has. If something is made in small numbers, there is a novelty to it, and it feels like a unique investment. I remember buying a pair of Christian Louboutin flats created in collaboration with The Royal Mansour Hotel in Marrakech and only available for purchase there—it was a singular style and really resonated with my sartorial taste.”

The princess treatment

Material joys aside, buying into the world of luxury is a layered concept—one where the experience inside and outside the store matters as much as product. For Babani, who has attended her fair share of brand-led events and experientials, the secret sauce lies in melding authenticity with indulgence. In a move that highlights the country's significance to Chanel Beauty, Babani was one of two Indian clients recently invited by the luxury house for a three-day wellness getaway at Our Habitas Ras Abrouq, a UNESCO-protected Al-Reem Biosphere Reserve in Doha. A small group of six invitees were pampered with sound baths, spa treatments and sumptuous beauty products, all against the backdrop of limestone dunes and tranquil waters. She shares, “It was special to be a part of an intimate set of people from around the world, where the interaction moves beyond small talk and the overall experience is more impactful and memorable.”

In Mumbai, Biren Vaidya, founder of House of Rose, a fine jewellery brand, considers the concept of world-building an art form in itself. Set foot into Rose’s sprawling new Ballard Estate space and you’re treated to several brand experiences, including a specially commissioned “Instagram Spot” inspired by the Hanging Gardens of Babylon and a fine-dining area that can host intimate evenings for special clientele. “Over the last decade, India’s tier-two and tier-three cities have seen remarkable growth in wealth, travel, and exposure, driving a surge in luxury spending. With the power of digital media and word-of-mouth, HNIs from these cities now frequent our Mumbai and Delhi stores—not just for bridal shopping but for regular indulgences,” he reveals.

From the retailers mouth

In a bid to expand the scope of luxury in India, Devansh Jain Nawal, a former Goldman Sachs employee, co-founded Culture Circle, filling the gap he saw for luxury sneakers as well as new-age premium brands such Loewe, Jacquemus, and Coperni. “At Culture Circle, besides limited release sneakers we’ve observed a fast sell-through rate for small accessories and collectables–Rhode phone cases consistently generate extensive waitlists, Supreme’s Heller Mugs set and FW22 ashtrays typically sell through within couple of days, while Fear of God Essentials collections reach high allocation status within the launch week. The pattern demonstrates the Indian consumers’ growing sophistication and willingness to secure luxury hype pieces,” shares Nawal. So clearly whether they’re spending their money abroad or in India, on one-of-a-kind pieces or low-key luxury kicks, the power of the Indian customer cannot be ignored.