BENGALURU: Wealthy Indians are spending more overall, but a smaller share of that spending is going to retail stores selling goods like clothing and gadgets.
As incomes rise for affluent households, they are increasingly spending on travel, fine dining and curated experiences such as concerts and wellness retreats, even as they continue to purchase high-value premium goods.
In response, retailers are accelerating efforts to add experiential formats, from curated in-store services to immersive store environments, as they strive to stay relevant in a consumption landscape increasingly driven by engagement rather than transactions.
New data from Visa Consulting & Analytics (VCA), shared with Mint, shows retail’s share of wallet drops from nearly 50% among emerging affluent consumers to about 28% for the ultra-wealthy, as spending on travel and experiences rises sharply.
“Affluence is not an absolute state defined by income. It’s defined by how and where people spend. What we’re seeing is a clear shift from ownership to experiences,” said Sushmit Nath, head of Visa Consulting & Analytics for India and South Asia.
That shift is already reshaping physical retail spaces. “Over the past few years, we’ve seen a clear evolution in how entertainment is shaping the modern mall. Today, the expectation is far more layered, with multiple experiential formats co-existing within the same destination,” said Jayen Naik, president (operations), Nexus Select Malls.
Premiumization
The change is visible across categories. While retail’s share is shrinking, absolute spending on premium goods is rising, with affluent consumers trading up across segments. Three in four wealthy Indians now make at least one high-end purchase every quarter, while one in four buys something premium every two weeks, data shared by VCA, the advisory arm of Visa Inc, showed.
Spending intensity is also rising sharply. Ultra-elite consumers spend upwards of ₹3 lakh per visit on jewellery and make multiple such purchases a year, while average spends on high-end gadgets exceed ₹60,000.
At the same time, discretionary spending—covering travel, luxury and entertainment—rises from under 35% for non-affluent consumers to nearly 45% for the ultra-elite.
“It’s no longer milestone-based consumption. We’re seeing a clear increase in the frequency of premium purchases,” Nath said. “Jewellery, for instance, is no longer a one-time investment purchase.”
To remain relevant, many retailers are investing in experiential formats, including private events, curated shopping journeys, and service-led engagement.
“Consumers today are not just buying a mattress—they are investing in better sleep and overall wellbeing. That shift requires retail to do more than display products; it needs to guide decisions,” Sridhar Balakrishnan, chief executive of mattress maker Duroflex Ltd, told Mint.
Duroflex is reworking its stores into immersive spaces designed to help consumers visualize products in real-life settings and make more informed choices. “The future of offline retail lies in creating spaces that simplify decision-making, build trust and genuinely add value,” Balakrishnan said.
Brands need to think beyond standalone products and move toward curated, experience-led ecosystems, according to VCA’s Nath.
Nexus’ Naik said the shift is also changing consumer expectations within malls. “There is a growing cohort of young adults and social groups seeking more immersive and participative experiences, from competitive gaming and bowling to interactive activity arenas.”
Retail’s evolving role
Payments data adds another layer to the shift. Affluent consumers are using credit cards more frequently across discretionary categories such as travel and dining, reinforcing a more experience-oriented consumption pattern.
“Credit cards don’t just enable transactions, they enable aspiration. They give consumers access to experiences and categories that may otherwise be out of reach,” Nath said.
At the same time, retail is not disappearing. Instead, its role is evolving from a primary spending destination to one part of a broader lifestyle ecosystem.
“These consumers are not looking at isolated transactions anymore. They’re looking for an integrated experience across their entire journey,” Nath said.
Malls are already adapting. “Entertainment is no longer a peripheral attraction within malls; it has become a critical driver of dwell time, repeat visitation, and overall engagement,” Nexus’ Naik said, adding that malls are evolving into “multi-format experience engines”.
As affluence spreads beyond metros, demand for premium goods is rising alongside expectations of better experiences and access.
For some categories, such as jewellery and beauty, strong personal relevance may sustain demand. For others, particularly discretionary retail without a clear experiential layer, the pressure to evolve may intensify, according to Nath.
“This is not a short-term phenomenon. We are seeing a fundamental shift in how Indian affluence is defined and it’s here to stay,” Nath said.