Like many other industries in the country, the Indian retail industry is witnessing some dynamic shifts, pointing to changing spending capacities and aspirations. While on one hand, Quick Commerce is fast gaining taction, posing question mark over the future of General Trade in the country, luxury retailing seems to beopening up new possibilities and opportunities.  

Check this - spending on luxury goods by Indians in quarter one of 2024 was reportedly 250% more compared to Q1 in in 2019. This is from an ET report citing Visa data. Looking at this one would think that Covid and all the accompanying economic challenges might as well have happened on a different planet or in a different era! But the fact is that industry research reports expect India’s luxury market to reach anywhere between US $85 billion and $200 billion by 2030! According to a report by Bain and Company, India's luxury market is forecast to expand to 3.5 times its current size.  

This is quite obviously a reflection of the fast growth of affluence in the country. A report ‘The Rise of 'Affluent India’ by Goldman Sachs Research cited in a Mint report says that the number of affluent consumers in India will rise from approximately 60 million in 2023 to 100 million by 2027. 

Credit card spending in India reportedly saw a 26% year-on-year surge in February, reaching ₹1.5 lakh crore.In February 2024, the total number of credit cards issued by banks in India surpassed the 100 million mark, with an addition of 1.1 million cards compared to January.  

Also, according to the Wealth Report 2024 by global consultancy Knight Frank, the number of ultra-high-net-worth individuals (with a net worth of over US$ 30 million) is projected to increase from 13,263 in 2023 to 19,908 by 2028.  

Not surprisingly, many global luxury brands are setting up shops in the country, eyeing spaces like the Jio World Plaza in Mumbai, which has emerged to be a premier hub for global luxury brands including Louis Vuitton, Gucci, Burberry, Valentino, Dior, Balenciaga, Rolex, Bottega Veneta, Cartier, Bulgari, Jimmy Choo, and many more.  

As per a report by PHD Chamber of Commerce and Industry and CBRE South Asia, luxury brands’ footprint across retail formats saw a 170% leap in 2023, covering as much as 600,000 square feet. Mumbai and Delhi have emerged to be top destinations for luxury brands in the country with malls such as DLF’s Emporio, Chanakya Malls, Palladium Mall, and Jio World Plaza, being considered conducive spaces for luxury brands.  

Major Indian retail groups including Reliance Brands Ltd, and Aditya Birla Fashion and Retail Limited (ABFRL) have entered into partnerships with global luxury brands, planning sprawling flagship stores across these cities. It would thus seem that the luxury segment would be among the key growth drivers for retail and its surrounding industries including retail design, technology and solutions including lighting, fixtures, graphics and other in-store elements, with offerings that go beyond the functional and are high on experiential elements.  

In fact, luxury shopping is an important part of the affluent Indian’s travel agenda. According to an ET report, Thomas Cook (India) has seen a 20-25% year-on-year jump for premium and luxury shopping experiences among Indians travelling abroad and visits to luxury retail outlets are incorporated as part of the itinerary. While this applies to international travel, it is only a matter of time, before the trend catches on in India, with luxury stores in the metros becoming travel hubs, offering an experience that transcends shopping and embraces the aspirations of Indians willing to spend a premium on immersive luxuries.