India Luxury Goods Market Overview, 2029

India Luxury Goods Market Overview, 2029

The Indian luxury goods sector has experienced a significant spike, indicating a positive trajectory in recent years. Personal luxury goods (PLG) dominate this terrain, with fashion products such as clothes, handbags, and footwear leading the market, followed by watches and jewellery. Notable developments include a clear shift toward athleisure and sustainable luxury products, which reflect changing consumer preferences. The Indian luxury market's unique selling point (USP) is its skillful combination of traditional Indian craftsmanship with global trends, which provides buyers with a special attraction. The Indian luxury market is less than China's, but it is growing rapidly. This growth trajectory is driven by an expanding middle class with rising disposable incomes, shifting consumer preferences toward luxury products, and more urbanisation. Despite its small size, the Indian luxury industry offers unique prospects for luxury brands looking to grow their worldwide footprint and reach an emerging consumer base with a taste for luxury goods. India has a long legacy of workmanship, which adds to its appeal as a destination for luxury goods. However, the government is facing difficulty in producing certain luxury raw materials domestically. Despite its availability of talented artisans and crafting traditions, India is primarily reliant on imported raw materials for luxury production, which can have an impact on supply chains and production costs for luxury businesses operating in the country.

According to the research report “India Luxury Goods Market Overview, 2029,"" published by Bonafide Research, the India Luxury Goods market is growing at a CAGR of more than 7% from 2024 to 2029. Beyond physical things, luxury experiences are growing in popularity in India, including luxury travel, fine dining, and wellness activities. This trend demonstrates a growing preference for experienced luxury among affluent Indian customers. Rising disposable incomes, an expanding young wealthy population, and more brand awareness are among the cultural variables driving the Indian luxury goods market's growth. However, the market is not without obstacles. High import duties are a substantial barrier to entrance for worldwide luxury businesses, and counterfeiting remains a persistent problem, endangering brand integrity. Furthermore, limited local manufacturing infrastructure constrains the sector's growth potential, necessitating deliberate measures. In terms of policy and regulations, the Indian government is taking proactive steps to reduce import restrictions for luxury brands, indicating a promising future for the industry. However, problems remain, such as certification limits on specific raw materials, which might delay production operations. Navigating these regulatory dynamics is critical for stakeholders in the Indian luxury goods market to capitalise on its growing potential while dealing with inherent obstacles.

When categorising luxury goods, various product types play a significant role in defining the market. Clothing and apparel represent the broadest category, encompassing a wide range of items worn on the body, such as shirts, pants, dresses, and jackets. Jewellery holds its distinct category, comprising ornamental objects worn for decoration, including earrings, necklaces, bracelets, rings, and brooches, often crafted from precious metals, gemstones, and pearls. Watches, as timepieces worn for both functional and fashion purposes, form another essential product type within the luxury sector. Footwear, covering a variety of shoe types like boots, sandals, and slippers, provides both protection and style for the feet. Bags, including handbags, backpacks, and clutches, serve as containers for carrying items and have been steadily growing in demand within the luxury market. Other types of fashion items, such as hats, scarves, belts, and sunglasses, fall under a broader category, offering additional avenues for luxury consumption. Regarding end users, luxury goods cater predominantly to women, with a wide array of products tailored to their preferences and tastes. However, the market for men's luxury items is also significant, offering tailored suits, accessories, and grooming products to discerning male consumers. The segment catering to children is growing steadily, with luxury brands expanding their offerings to include kid-friendly apparel, accessories, and toys. In terms of distribution channels, retail stores remain the leading avenue for purchasing luxury goods, encompassing both standalone boutiques and multi-brand retail stores offering curated selections of luxury items. Luxury boutiques and e-commerce continue to gain traction.

India's luxury market is expected to grow at a faster rate than the world average. India, with its thriving economy and growing affluent client base, is an ideal location for luxury businesses looking to develop. Key events like India Fashion Week and Luxury Connect India provide exciting opportunities for foreign firms to connect and grow within the sector. These events not only highlight the current trends, but also provide valuable networking chances for market penetration and brand recognition. Established global powerhouses have made their mark on the Indian luxury sector. However, the market is undergoing a paradigm shift with the entrance of new players such as Indian designers and domestic luxury companies. This diversification adds dynamism to the sector, encouraging rivalry and innovation. The inflow of new entrants demonstrates India's changing taste preferences and the growing importance of domestic luxury items in the global market. The luxury sector in India has undergone substantial shifts in recent years, driven by digitalization and the adoption of omnichannel retail methods. Brands are increasingly using digital platforms to communicate with customers, providing personalised experiences and faster buying trips.

Furthermore, the growth of the pre-owned luxury industry indicates altering customer attitudes toward sustainability and value-consciousness. This trend creates opportunity for both consumers wanting luxury at more affordable prices and firms who embrace circular economy concepts. Within the luxury retail sector, sales channels have shifted significantly from traditional brick-and-mortar storefronts to online platforms. This shift reflects shifting consumer habits, with more people choosing the convenience and accessibility of internet buying. The digital landscape expands luxury brands' reach and helps them to enter new areas and demographics. As a result, businesses are investing extensively in improving their online presence and perfecting the digital purchasing experience to suit the changing demands of consumers. The luxury e-commerce segment is rapidly expanding, mirroring the overall trend of online retail expansion. This development can be ascribed to a number of causes, including rising acceptability of online buying among affluent consumers, technology advancements that enable a more immersive online shopping experience, and the proliferation of digital marketing methods designed specifically for luxury businesses. As a result, luxury retailers are adopting e-commerce platforms as a critical sales and brand exposure channel, investing resources in designing frictionless online shopping experiences that reflect the exclusivity and grandeur associated with their items.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Luxury Goods market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Clothing and Apparel
• Jewellery
• Watches
• Footwear
• Bags
• Other Types

By End User
• Women
• Men
• Children

By Distribution Channel
• Retail Stores
• Multi-Brand Retail Stores
• Luxury Boutiques
• Online Retail

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Luxury Goods industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.