India looks set to be the luxury market's next growth driver. Here's how brands can make their mark
Home to the world’s fifth-largest economy, India is currently seeing explosive growth in its luxury sector.
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India’s luxury landscape is at a crucial juncture. With a booming economy, the world’s largest population and a dynamic, youthful demographic, the country has been dubbed the next luxury hub, especially at a time when luxury consumption in China is declining as spending softens.
Is the centre of the world’s luxury market shifting from China to India, as a fast-growing appetite in goods such as high-end watches suggests? And, if so, how should brands approach and win over luxury clients in this market known for its millennial craftmanship and strong culture?
The country’s luxury market, currently valued at US$17 billion, is set to more than triple by 2030, growing to upwards of US$85 billion. Years of impressive GDP growth have turned India into the world’s fastest-growing major economy. This economic surge will boost the number of ultra-high-net-worth individuals – people with a net worth of at least US$30 million – by an anticipated 50 percent by 2028.
“When it comes to India, don’t take a snapshot, focus on the trajectory,” said Mahi Khanna, project lead at IndLux. Indeed, the expanding middle class and their growing disposable income are propelling what will be a US$2.2 trillion retail market by 2030, which will make India the third largest globally.
[This article is republished courtesy of INSEAD Knowledge, the portal to the latest business insights and views of The Business School of the World. Copyright INSEAD 2024]