Whalesbook
India's luxury market is undergoing a major shift, with projections from Bain & Company showing it could reach a massive $90 billion by 2030. This growth means the market is moving beyond its traditional strongholds in Delhi, Mumbai, and Bengaluru. Wealth is spreading across the country, rather than just staying in these older city centers.
New Consumer Habits Emerge
The old stereotypes – Delhi for showing off, Mumbai for subtle choices, and Bengaluru for tech money – are fading. Sathyajit Radhakrishnan, CEO of international brands at Aditya Birla Fashion and Retail Limited, says shoppers today, especially those connected globally and online, are buying similarly across the country. The differences are now more about how people discover and interact with brands, not just their style. This is why luxury companies are starting to group customers by their lifestyles and jobs, instead of just where they live.
Brands Look Beyond Location for Customers
Executives point to three main customer types. First, there are aspirational buyers who want items right away. Second, new wealthy individuals are building substantial luxury collections. Third, established wealthy families are typically slower to buy locally. Rahul Prasad, managing director at luxury retail advisory firm Pike Preston, explains that aspirational buyers often use payment plans and prefer items with clear brand logos. Newly wealthy buyers tend to purchase expensive items after seeing what their peers buy. Established families, however, often prefer subtle 'quiet luxury' and enjoy shopping internationally.
Growth in Smaller Cities
Although the entire market is growing, the most sophisticated buyers are still mostly in major cities. Mukul Khanna, COO at watch retailer Ethos Limited, notes that city shoppers are well-informed about global product launches and technical specifications. In smaller cities like Chandigarh or Jaipur, people aspire to own luxury goods, but often discover them through personal connections and stories. To reach these customers, Ethos offers hands-on experiences like watchmaking classes to teach them about craftsmanship. Tata CLiQ Luxury also sees significant sales from these non-metro areas, proving that demand is growing across many product types there.
New Ways to Reach Customers
Luxury brands are changing how they connect with customers, reaching out through private banks, wealth networks, and special events instead of just traditional stores. These personalized approaches signal a move away from buying luxury only for big occasions like weddings, towards making it a part of everyday life. Younger wealthy buyers and those building their fortunes see luxury more as a way to express personal taste and lifestyle, rather than just a symbol of status. Consequently, building relationships and offering personal service are now as vital as prime store locations for customer loyalty.