3 Reasons for the Success of Luxury Brands in India
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After a keen interest in China that has characterized recent years, luxury brands are now setting their sights on India, which is emerging as the new market to conquer for the ready-to-wear and high-end beauty sectors. With the highest percentage of billionaires, steady population growth, increasing purchasing power, a significant presence of millennials on social media, and ancient textile craftsmanship… The country presents undeniable strategic advantages for the development and expansion of luxury brands in India.
What is the presence of luxury brands in India?
In recent years, luxury houses have gradually turned their attention to the spice-laden country, which stands out as the new target to attract for promising growth. With collections dedicated to India, fashion shows in historic locations, and the opening of new flagships in the country, luxury brands are making their transition on various fronts.
The historical link between India and haute couture
Some luxury brands have had a presence in India for quite some time. For instance, the house of Hermès has maintained close ties with the country since 1914, when it began to design equestrian pieces for Indian princes.
This was followed by collections inspired by India and its colors. The creation of scarves in 1998 inspired by 18th-century Indian embroidery, along with an iconic campaign released in 2008 during the “Year of India”, a year dedicated by Hermès to the country, resulted in pieces that blend the iconic orange of the house with the typical pink of India.
Recently, the house of Dior, which also has ties with the country, confirmed the growing interest in India by making headlines at the beginning of 2023, choosing the Gateway of India in Mumbai as the backdrop for its Fall-Winter 2023 fashion show designed by Maria Grazia Chiuri. The house made a masterstroke by highlighting Indian craftsmanship while directly appealing to this target audience, which already has a pronounced interest in the values and heritage of the house.
How are luxury brands establishing themselves in India?
While luxury brands are increasingly present in India, this can be explained by some promising figures. With 35% of the world’s billionaires, the country shows significant development, with a population of 1.4 billion individuals poised to become the largest in the world. Furthermore, the country’s growth remains steady despite current inflation, and purchasing power is also increasing, particularly among the wealthiest.
In 2022, the luxury market in India was around 7.5 billion dollars.
In line with this favorable landscape for the development of luxury brands in India, groups such as Reliance Brands Limited (RBL) and Aditya Birla Fashion and Retail Limited (ABFRL) are facilitating the expansion of luxury brands in India by helping them with distribution or opening their flagship stores. As a result, houses like Burberry, which we recently explored in the archives, now have points of sale to get closer to their target audience.
ABFRL plans to create 2 new flagships in 2024 and 2025 in partnership with Galeries Lafayette, at two strategic locations in Mumbai, in addition to launching an online platform. Valentino is working on opening a second Indian address, visibly inspiring Balenciaga, which is also on the verge of opening a shop.
Sabyasachi, on its part, has just opened a stunning new space in the location originally built for the Middle Eastern British Bank.
How does the radiance of Indian culture contribute to the growth of luxury brands in India?
The 7th art also contributes to the visibility of textile work related to Indian culture. Creations from houses like Dior have notably been featured in Bollywood films.
In the health and beauty sector, the principles of Ayurveda and a more holistic approach to life have recently gained popularity in the West. The initiative to support young Indian beauty brands, Beauty & You India, created by Estée Lauder in partnership with Nykaa, specifically aims to spotlight new brands.
This presence of luxury brands in India will also be closely studied through a new program from the Paris School of Luxury starting next semester.
Why is the evolution of luxury brand clientele in India interesting?
Alongside the increase in the Indian population and its wealthy individuals, we observe a now more significant share of young clients with a strong taste for luxury.
How do young buyers fit into the target audience of luxury brands?
If the target of wealthy youth is sought after by luxury brands in India, it is due to their consumption and communication patterns. On one hand, Gen Z is very fond of beautiful pieces and easily invests in limited editions, resulting in a high average basket value. Secondly, these millennials, who have a notable presence on social media, are reinventing communication with brands and allowing for increased visibility and feedback.
In this respect, India is once again appealing, having the highest percentage of millennials and the largest number of Instagram users. Luxury brands in India are thus revisiting their positioning to attract this target, particularly focusing on eco-responsible values that now guide the purchasing decisions of a clientele that is much more selective.
Studies and conferences, such as the one organized in Mumbai earlier this year by Tata Clilq Luxury, HSMC, and Vogue Business, aim to analyze the characteristics of this target audience to determine how to address them and create campaigns and activations to foster loyalty.
Additionally, the evolution of women’s status and influence is creating new opportunities for brands. With reports indicating that 40% of HSBC Premier accounts are held by women in the country, luxury brands in India benefit from a new premium clientele that is asserting itself.
How does tradition make space for luxury brands in India?
Along with the presence of a wealthier clientele interested in luxury pieces, the evolution of tradition opens new doors for creation for luxury brands in India.
This is especially true for wedding ceremonies, where more and more brides wish to include evening gowns in addition to the traditional dresses worn during various celebrations. As a result, creations are becoming more varied and modern, with a new demand for luxury brands emerging.
Additionally, luxury brands, both ready-to-wear and champagne like Moët & Chandon, are creating new products to accompany brides and their families during their shopping sessions.
How does Indian craftsmanship fit into luxury?
While India is often associated with the excesses of the fashion industry, particularly by concentrating some of the activity linked to fast fashion, it seeks to restore its image and highlight its ancient craftsmanship in textile work.
On one hand, India has allied with other countries in South and Southeast Asia for the “Fight the Heist” campaign, which accuses large groups of failing to pay adequate wages to workers. Furthermore, India has tripled the number of farms dedicated to organic cotton cultivation within a year. While it may not be the most eco-responsible natural fiber, it is already a step toward moving away from synthetic or processed fibers.
In response, many Indian brands are rethinking their models by incorporating slow fashion practices or resorting to upcycling to modernize pieces while preserving the splendor of Indian artisanal work evident in vintage items.
On the other hand, the textile work, prints, and Indian embroidery, recognized worldwide, are gaining visibility. While the Dior show in Mumbai offered significant exposure for this artisanal profession, particularly through the embroidery work on the collection pieces done by the women of the Chanakya School of Craft learning center in Mumbai, Indian designers are also making their mark on our runways, especially with several profiles showcasing their collections during this year’s Paris Fashion Weeks.
Furthermore, many celebrities are showcasing Indian designers and craftsmanship.
With favorable growth for the deployment of luxury brands in India and a target audience of young affluent buyers who are influential on social media, the country is attracting attention and seems well-positioned to welcome new flagships on its territory. It will be interesting to observe this trend in the coming months, alongside the reception of pieces from Indian designers in our Western society.
Photos: Pexels, Pinterest
