Rising disposable incomes, shifting customer tastes and the expansion of e-commerce platforms are all contributing to the growth of the country’s luxury brand industry
Gone are the days when luxurious products and services were seen as mere enormous expenses. With the transforming demands and preferences of consumers, luxurious experiences are gaining significant attention. Especially with Gen Z placing greater emphasis on quality buying experiences, the demand for premium products has increased dramatically. No wonder, the luxury brand market in India is experiencing incessant growth. According to Bain and Company, the luxury market in India is anticipated to reach $200 billion by 2030, growing to 3.5 times its current size.
Given the growing demand for luxury products and services in India, an increasing number of international businesses are eyeing the Indian market with positive plans to establish operations and flourish in the nation. In fact, various big-box international brands are appointing several Indian celebrities as their brand ambassadors, emphasizing the growth potential of the Indian luxury market.
Thus, it is reasonable to assert that India is the next big spot for luxury businesses. This is demonstrated by the growing number of Indian customers embracing luxury in all its forms, whether it be in the form of personal luxury products like jewellery, watches, and shoes or experience luxury.
Expansion drivers
India’s luxury market is experiencing rapid growth as the country’s economy moves toward being the fastest-growing in the world. With the evolving appetite of Indian consumers, the demand for premium and luxury products is witnessing a significant rise. As per Statista, the Luxury Goods industry in India is anticipated to yield a revenue of $7.86 billion by 2024.
Owing to the changing lifestyles and increasing disposable incomes, the focus of Indian consumers has shifted from cheap ephemeral products to long-lasting luxurious ones. The idea is to seek an exceptional experience when interacting with a prestigious brand. Furthermore, social media is playing a pivotal role in reshaping consumer purchasing attitudes to a greater extent.
Exposure to international trends and the enticing lifestyles of the so-called ‘influencers’ has fuelled the desire for luxury goods. In addition, the ease of availability of premium products has further propelled the growth of the luxury market.
The proliferation of e-commerce platforms has facilitated access to a wide variety of products and the ease of doorstep delivery for individuals in search of luxury products.
Apart from online platforms, other technological advances, such as artificial intelligence, are altering how luxury brands function and communicate with customers.
The unparalleled role of AI
Going beyond being a major tech fad; artificial intelligence is a potent instrument that boasts the ability to enhance every facet of luxury service, from operational effectiveness to customer interaction. Through the analysis of extensive customer data, including past purchases and browsing patterns, premium businesses can craft incredibly tailored shopping experiences. This, in turn, makes consumers feel more appreciated, which enhances their overall satisfaction.
Apart from providing tailored support, artificial intelligence assists premium brands in maintaining demand and supply equilibrium. Leveraging historical data and trends, AI tools assist in demand forecasting, inventory management and logistics planning, resulting in a seamless and flexible supply chain. This makes it possible for luxury businesses to provide superior customer service and effectively add to consumers’ memorable experiences.
Luxury brand market: Future ahead
Rising disposable incomes, shifting customer tastes and the expansion of e-commerce platforms have all contributed to the growth of the luxury brand industry in India. Contemporary consumers are not only comprehending the genuine essence of luxury and connecting it with excellence and workmanship but are also utilizing it as a means of personal expression. This has resulted in the growing demand for personalization and premium experiences, making it vital for luxury brands to leverage technological innovations, such as AI, to influence every touch point of the consumer journey.
The luxury market is positioned for long-term expansion as the demand for premium lifestyle continues to grow. To maintain a competitive advantage in the market, it is crucial for premium businesses to prioritize upholding the distinctive qualities that characterize luxury, which include reliability, quality and a dedication to customer satisfaction.
