India report: Why global brands are betting big on the country’s emerging elite

December 6, 2024

One of India's top designers with global name recognition, Sabyasachi is known for rooting its designs in the country's heritage, with opulent stores to showcase the array of fashion and accessories. Image credit: Sabyasachi

By Abhay Gupta

The global luxury business, traditionally rooted in the West and China, is undergoing a transformative shift.

With slowing growth in established markets, luxury brands are setting their sights on India – a nation of economic momentum, cultural vibrancy and youthful aspirations.

India’s emergence as a key market for luxury is driven by its "emerging elite" – a blend of high-net-worth individuals (HNWIs), ultra-high-net-worth individuals (UHNWIs) and a rising aspirational middle class.

This demographic is not only growing in numbers but is also evolving in taste, blending global sensibilities with Indian traditions to redefine luxury consumption.

Further, India’s rise as a luxury powerhouse is not just about consumption. It reflects a broader story of influence, creativity and opportunity.

From a thriving base of high-net-worth individuals to the global appeal of Indian celebrities, the nation is rewriting the rules of luxury.

India’s emerging elite: The engine of luxury growth
India’s wealth dynamics are reshaping its consumer landscape:

In 2023, whilst the global billionaire population grew by 4 percent to a high of 3,323, India recorded the fastest growth at 16 percent to a size of 131 billionaires. This UHNWI segment is projected to increase by 58 percent by 2030.

The country boasts more than 1.4 million HNWIs, with this number expected to grow by 75 percent by 2030, according to Knight Frank.

The aspirational middle class, exceeding 350 million people, is growing their disposable incomes by more than 8 percent annually, driving demand for premium experiences and products.

This "emerging elite" is young, global in outlook and digitally savvy.

More than 65 percent of India’s population is under 35, making it one of the youngest and most promising luxury markets in the world. Their preferences are driving growth across key sectors.

Sectoral insights: A booming luxury market
India’s appetite for luxury spans diverse categories:

Automobiles: Luxury car sales in India exceeded 42,000 units in 2023, growing by 45 percent year-on-year. Brands such as Mercedes-Benz and BMW are witnessing record demand, especially for electric models, as India’s affluent consumers embrace sustainable luxury.

Real estate: Luxury homes priced above $1.2 million saw an 80 percent surge in demand in 2022, with cities such as Mumbai (Bombay) and Bengaluru (Bangalore) driving growth. Branded residences such as Trump Towers and Lodha World One epitomize the appeal of ultra-premium living.

Watches and jewelry: Swiss watch imports rose by 21 percent in 2022, while the Indian jewelry market is projected to reach $103 billion by 2027. Indian consumers are gravitating toward heritage brands such as Cartier and Rolex, alongside artisanal creations with Indian craftsmanship. Younger consumers are driving demand for pre-owned luxury watches, a segment growing at 25 percent annually.

Wines and spirits: The luxury spirits segment grew by 19 percent year-on-year in 2022, with Scotch whisky imports up 60 percent since 2019. Urban millennials are driving demand for premium wines and craft spirits.

Indian beauty boom – the new luxury frontier: India’s beauty and skincare sector highlights the broader narrative of premiumization.
1. Valued at $16 billion in 2022, is projected to grow at a compound annual growth rate (CAGR) of 10 percent, driven by the aspirations of a middle class keen to invest in self-care.
2. Global luxury brands such as Estée Lauder, Dior Beauty, Armani, Prada, Chanel and La Mer are tapping into this demand with tailored product ranges and exclusive retail experiences.
3. Sephora India has seen consistent growth, offering a curated selection of global luxury beauty brands.
4. Nykaa Luxe, a premium arm of India’s largest beauty online retailer, has brought international brands to the fingertips of Indian consumers, democratizing access to luxury beauty.

Indian luxury brands: Going global
India is not just consuming luxury – it is creating it. Indian luxury brands are setting up global footprints, redefining how the world views luxury.

Fashion and couture: Designers such as Sabyasachi Mukherjee and Manish Malhotra are opening stores in global luxury hubs including New York and Dubai. Their blend of heritage and innovation is attracting international clients.

Jewelry: Brands such as Amrapali are showcasing their collections at Paris Fashion Week, while Tanishq explores international markets, spotlighting traditional Indian craftsmanship.

Wellness: Brands such as Forest Essentials and Kama Ayurveda are championing Ayurvedic luxury with stores in London and partnerships across Asia.

Hospitality: Indian hotel groups such as Taj and Oberoi are bringing Indian hospitality to the world, with properties in destinations including the United States, United Kingdom, Morocco and the Maldives.

Premium spirits Indian spirits are excelling in international markets, blending quality with a distinctly Indian identity, thereby emerging as global icons:

Amrut Whisky and Paul John Whisky, produced in India, have consistently ranked among the world’s best single malts in international competitions.

Rampur Indian Single Malt has gained critical acclaim in Europe and the U.S. for its unique flavors rooted in Indian terroir.

Indian craft gin brands such as Greater Than and Stranger & Sons are making a mark globally, with exports to the U.K., Singapore and the U.S. driving growth.

These brands reflect India’s potential as both a luxury consumer and a global tastemaker.

Abhay Gupta

Indian celebrities: The face of global luxury
A pivotal part of India’s luxury story is the appointment of Indian celebrities as global brand ambassadors.

Icons such as Deepika Padukone (Louis Vuitton), Priyanka Chopra Jonas (Bulgari), Sonam Kapoor (Christian Dior) and Alia Bhatt (Gucci) are reshaping how luxury brands connect with Indian and global audiences.

A global diaspora effect: With more than 35 million Indians living abroad and an average of 2.5 million moving abroad annually, the diaspora wields considerable influence, particularly among Gen Z. Indian celebrities resonate deeply with this audience, acting as cultural bridges for global brands.

Social media and Gen Z appeal: With millions of followers, stars such as Priyanka Chopra Jonas (Bulgari) embody diversity and modernity, making luxury brands more relatable to a digitally native, inclusive generation.

The availability factor: As luxury brands establish a stronger presence in India, these endorsements feel more accessible, creating a seamless aspiration-to-purchase journey.

This strategy reflects a broader industry recognition: India’s cultural and economic influence now demands representation at the highest levels.

Why India? The strategic imperative for global brands
Several factors make India an unmissable market for luxury brands:

Youthful demographics: A median age of 28.4 years ensures a long-term consumer base.

Tier 2 and Tier 3 growth: Smaller cities already contribute 35 percent of luxury sales, with rising disposable incomes fuelling demand.

Digital access: Luxury ecommerce is growing at a CAGR of 10.7 percent, democratizing access to premium products.

Despite logistical challenges such as high import duties and regional diversity, India offers unparalleled opportunities for brands that adapt to its unique cultural and economic landscape.

INDIA’S RISE AS a luxury hub is not just about numbers – it is about narratives.

From influencing global Gen Z to exporting its own brand of luxury, India is transforming the luxury ecosystem.

Global brands that recognize and embrace this "luxe shift" will find themselves at the heart of a new luxury movement – one that is inclusive, aspirational and uniquely Indian.

Abhay Gupta is founder/CEO of Luxury Connect and Luxury Connect Business School, Gurgaon, Haryana, India. Reach him at abhay@luxuryconnect.in.

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