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In Part 1, I explored how rising affluence and evolving mindsets are fueling a broad-based “premium-for-the-many” movement across India. Consumers are no longer merely bargain-hunters, they seek products and experiences that reflect quality, identity, and status, albeit with value-consciousness intact. In this second part, I turn to specific sectors—beauty, beverages, fashion, travel, and jewellery—to identify where premiumization opportunities lie and how brands can act on them. I conclude with a strategic toolkit that business leaders can apply across categories, while emphasizing the broader cultural stakes: protecting India’s heritage through branding.

Beauty & Personal Care: Skincare Routines Meet Social Aspiration

India’s beauty and personal care industry exemplifies how premiumization is driven by consumer awareness, digital influence, and increased spending power. The premium beauty segment is projected to nearly double by 2028, growing from $1.6–1.8 billion in 2023 to $3–3.2 billion. Crucially, this growth is not confined to metro cities, Tier 2 and Tier 3 consumers are also embracing advanced skincare and makeup routines.

Premiumization here hinges on consumer education. Indian consumers are learning to differentiate products based on ingredients and results—especially through influencer content and brand-led tutorials. For example, platforms like Nykaa’s Beauty Book and live demos help justify the higher prices of vitamin C serums or retinol creams by explaining efficacy. consumers adopting more “comprehensive beauty regimens”, which leads to higher spending on skincare and haircare, especially as they add niche products like serums and toners to their routine. This trend, dubbed “stepification,” essentially fuels premiumization – more steps mean more specialized (often premium) products. The implication for brands is clear: there’s a huge opportunity if you can educate consumers on why a premium product is worth it (e.g. better ingredients, better results). “Try-before-you-invest” formats such as “minis” and “travel kits” can also help lower the risk for value-conscious consumers. The premium beauty playbook in India is about combining aspiration with reassurance: global quality, but with the guidance and accessibility that make a first-time buyer take the leap.

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Homegrown brands like Forest Essentials and Kama Ayurveda show how Indian heritage can anchor premium appeal. They blend Ayurvedic formulas with elegant packaging, spa-like retail stores, and selective distribution, offering a cultural alternative to Western luxury. International brands like Chanel and Dior have succeeded by localizing shade ranges and marketing narratives, becoming top performers on platforms like Nykaa Luxe.

Key Takeaways:

  • Educate for Elevation: Use influencers and tutorials to demystify multi-step routines. An informed consumer is more likely to invest in high-quality serums or ampoules.
  • De-risk Luxury: Offer mini sizes and starter kits. Forest Essentials and Kama Ayurveda use this strategy effectively to onboard new consumers.
  • Indian Heritage, Premium Packaging: Leverage Ayurveda, natural ingredients, and traditional remedies, but elevate with elegant branding. Heritage becomes an asset, not a constraint.
  • Omnichannel Presence: Build consistency across offline and online platforms. Consumers may learn via Instagram, compare on Nykaa, and purchase in a physical boutique.

Beverages: The Rise of Connoisseurship

Both alcoholic and non-alcoholic beverages in India are undergoing a visible shift from volume to value. Diageo India, for example, saw ~23% growth in its “Prestige & Above” (premium) spirits segment in FY2023, making up over 70% of the company’s portfolio by late 2022. A new generation of Indian consumers is choosing quality, single malts, craft gins, and boutique wines, over quantity. After years of volume-driven growth, the alcohol industry is now tapping into a “drink better, not more” ethos.

Local craft brands like Amrut, Paul John (single malts), and Stranger & Sons (gin) are capturing this mood, mixing national pride with sophisticated branding. For these players, narrative and exclusivity are key: consumers are increasingly drawn to provenance (e.g., Himalayan botanicals), aging processes, and packaging. Tasting events, bartender collaborations, and curated experiences deepen engagement.

Meanwhile, coffee culture has exploded. Starbucks plans to reach 1,000 outlets by 2028, having succeeded in turning a ₹300 latte into a status symbol. Homegrown rivals like Blue Tokai and Third Wave Coffee are thriving with third-wave experiences—single origin brews, sleek spaces, and digital loyalty.

Key Takeaways:

  • Storytelling & Craft: Highlight the origin, ingredients, and craftsmanship—whether it's single-origin coffee beans or Himalayan botanicals in gin.
  • Premium Experiences: Create immersive tastings, workshops, and collaborations with chefs or designers to turn beverages into lifestyle markers.
  • Local Flavours, Global Formats: Introduce India-specific SKUs (e.g., Masala Chai Latte) without compromising brand image.
  • Tiered Pricing & Bundling: Mini cocktails, coffee-and-snack bundles, or happy hours can onboard aspirational yet budget-conscious consumers.

Fashion & Lifestyle: Mass Prestige and Accessible Luxury

Fashion in India is moving from mass-market utility to “mass prestige.” The fastest growth is coming from mid-premium and premium segments, especially among aspirational urban professionals. Indian players are riding this wave. Brands like Manyavar have launched luxe sub-labels for wedding wear, and Titan’s Taneira offers premium sarees in high-design environments. D2C brands and private labels are booming online: Instagram-first sneaker startups or premium Indian wear labels now serve consumers across geographies. Even in home décor and appliances, premiumization is visible: Dyson vacuums and smart kitchen devices are increasingly popular.

The sweet spot lies in balancing affordability and aspiration. Tiered offerings (good-better-best) allow customers to buy into a brand, then upgrade over time. Collaborations—between couture designers and mass retailers, or between brands and local artists—create limited editions that justify premiums and generate buzz.

Key Takeaways

  • Product Tiering: Offer good-better-best product ladders to cater to different budgets while preserving aspiration.
  • Collaborations for Buzz: Sabyasachi x H&M demonstrated how designer collabs simultaneously democratize a luxury label and elevate the perception of a mass-market brand—creating buzz across segments.
  • Online Accessibility: Sell premium fashion D2C through Instagram or marketplaces like Ajio and Myntra. Small-town consumers are increasingly style-conscious and digitally savvy.
  • Customer Experience: Offer loyalty perks, personal styling sessions, and after-sales services to reinforce premium positioning.

Jewellery: Where Trust Meets Brand Experience

India’s $60 billion jewellery market is already a premium category—yet consumer expectations are evolving. Brands like Tanishq have redefined jewellery retail, turning it into a modern, transparent, and experience-rich process. With over 400 stores and sub-brands like Mia (affordable gold) and Zoya (ultra-premium), Tata’s jewellery arm is a successful case study in strategic premiumization.

What differentiates modern jewellery brands is the shift from transactional to experiential. Consumers seek storytelling (heritage, craftsmanship), personalization (custom designs), and assurance (certified purity, buy-back guarantees). Indian brands have the upper hand over foreign luxury entrants because they understand local needs: gold purity, investment value, and cultural designs.

Digitalization is transforming the space as well. Brands like CaratLane offer hybrid shopping—online try-ons, doorstep sampling, and virtual consultations. Younger consumers are increasingly comfortable buying jewellery online, provided trust is established.

Key Takeaways:

  • Cultural Premium: Showcase craft stories—karigari, temple motifs, Mughal inspirations—to build emotional resonance and justify price.
  • Trust as a Luxury Feature: Emphasize certifications, transparency, purity checks, and ethical sourcing.
  • Omnichannel Innovation: AR-enabled try-ons, at-home trials, and app-based recommendations can help brands win younger, mobile-first consumers.
  • Customization and Personalization: Made-to-order jewellery, styling consultations, and commemorative engravings can help elevate even smaller-ticket items into memorable purchases.

Travel & Experiences: Democratizing Luxury

India’s rising middle class is not only upgrading what they buy—but how they travel, eat, and unwind. The post-pandemic rebound saw a surge in luxury hotel bookings and experience-led travel. Platforms like MakeMyTrip launched “Luxe Selections” to curate high-end stays with bundled perks (spa credits, private transfers). Even Tier 2/3 cities are showing robust demand for five-star experiences.

Mid-range hotels and airlines are introducing premium tiers—e.g., club rooms, business-class cabins, or lounge access—to meet evolving expectations. Similarly, restaurants and cinemas are upgrading with gourmet menus, designer interiors, and VIP services. These “experience premiums” appeal to a consumer who might not own luxury, but wants to feel it.

In hospitality, shareability matters. Instagrammable décor, personalized gestures, and curated itineraries make experiences aspirational and amplifiable. Word-of-mouth and “social proof” influence purchasing more than ever—81% of Indian consumers say they’ve acted on friends’ posts.

Key Takeaways:

  • Bundle for Value: Sell experiences, not products. Curate packages that include champagne dinners, private guides, or fast-track access—creating differentiation without discounting.
  • Design for Social Sharing: Instagrammable moments (infinity pools, themed dining) aren’t superficial, they’re strategic amplifiers.
  • Premium Service Touchpoints: Small gestures like birthday cakes, handwritten notes, or early check-ins go a long way. Elevate service delivery: preference tracking, loyalty perks, concierge support.
  • Segment Smartly: Mid-tier brands can still premiumize via “club floors” or exclusive lounges without repositioning the whole chain.

Building Brands to Protect Heritage: The Kolhapuri Case

Beyond revenue, premiumization has cultural significance. A strong brand not only commands higher prices, it also protects India’s artisanal legacy. When traditional crafts remain unbranded, they’re vulnerable to appropriation. The criticism Prada received for selling a version of the Kolhapuri chappal without acknowledgement or compensation to its Indian roots is an example. Had Kolhapuri artisans been organized under a strong domestic or GI-branded (Geographical Indication tag) premium label, such appropriation would have been harder to justify. Branding acts as a form of soft Intellectual Property (IP)—reputation, visibility, and consumer awareness together create a shield against copycats. When customers recognize the cultural and artisanal value of a product, they’re more likely to seek out the original.

Indian brands must therefore see premiumization not just as economic strategy but cultural duty. Whether it’s sarees, leatherwork, jewellery, or spices—building recognized brands ensures that the rightful creators receive credit, value, and livelihood. Storytelling, traceability, and strategic partnerships with artisans can help scale heritage while protecting it.

The Premiumization Toolkit: 8 Strategic Principles

Across sectors, business leaders can apply the following principles to capture the Indian premium opportunity sustainably:
  1. Marry Global Quality with Local Relevance - Whether foreign or domestic, brands must strike the right cultural chord—through ingredients, design, or storytelling.
  2. Craft an Aspirational Narrative (with Substance) - Use brand stories rooted in heritage, design, or innovation—but ensure product performance matches the pitch.
  3. Lower the Barrier to Entry - Introduce minis, trials, or subscription models to let value-conscious customers access premium products.
  4. Deliver Seamless Omnichannel Experiences - Ensure consistency, convenience, and prestige across physical and digital touchpoints.
  5. Personalize and Reward Loyalty - Use CRM, purchase history, and smart segmentation to deliver tailored messages and upsell pathways.
  6. Design for Shareability - Make packaging, experiences, and products visually distinctive and social media ready.
  7. Invest in Premium Service - Offer fast, respectful, and responsive service—before, during, and after purchase.
  8. Stay Authentic and Consistent - Don’t dilute the brand by overextending or betraying its values. Growth should be strategic, not opportunistic.

Conclusion: Premium with Purpose

Premiumization in India is not merely about raising price points. It’s about aligning with evolving consumer aspirations—quality, identity, experience—and doing so in a culturally rooted, strategically sound way. For Indian brands, the premium path offers a dual benefit: higher margins and cultural guardianship. By investing in brand-building, storytelling, and customer-centric design, businesses can help Indian products travel farther, while keeping the soul of the country intact.

Premium, after all, is not a price. It is a promise.

Juniqu Jiang is an Assistant Professor of Marketing at ESSEC Business School.

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