The key to unlocking India's luxury market

But that does not make the Indian market easy to win over. While consumer spend is on the rise in the country, value is still something that drives most buyers. They remain remarkably price-conscious.

“India has always been a value-driven market," says Edward Lalrempuia, a fashion stylist who works with some of the country’s leading fashion and beauty brands. “So, if a woman is buying a Louis Vuitton bag, she buys it because she knows it has a repeat value and because of the status it has, and that also has a value attached to it."

Also read: Indian jewellery shines on the global stage

This sense of discernment is one that both new entrants and established brands must cater to. For Indian luxury consumers, the word value has many meanings, and understanding this mindset is crucial for brands looking to thrive in the country. Perhaps that’s the reason not many luxury brands have seen the growth they had hoped for in India, and they might need to take lessons from homegrown designers.

Amit Aggarwal, one of India’s well known independent designers, agrees that luxury price increases have affected consumer behaviour, “making buyers more price-conscious despite the country’s growing luxury market. While India’s affluent class continues to rise, recent price hikes have led many consumers to reassess their purchasing decisions. There’s a shift towards more discreet, timeless luxury over power displays, with a greater emphasis on value for money."

India’s young and dynamic demographic—more than 50% of the population is under 25—possesses a sharp understanding of value.

As Aggarwal says, “Younger, aspirational buyers are strategically opting for high-quality, durable items or seeking alternative channels like online retail or pre-owned goods. While brand prestige remains important, there’s a noticeable trend towards balancing exclusivity with rational spending."

His advice for international brands is clear. It’s crucial to “tailor offerings to local tastes, emphasise craftsmanship and durability of products, and build trust through transparency in pricing and good customer service," he says.

Also read: The truth behind the global love for desi design

The proliferation of homegrown brands and the choice of international labels within India has also expanded choice, meaning consumers are more willing to shop around for quality, price, and distinctiveness.

Plus, many Indian consumers, including Lalrempuia, still believe luxury is more affordable abroad, owing to perceptions of better deals and VAT (value-added tax) refunds. “To succeed, brands need to address these price perceptions, making it clear that buying luxury in India is competitive," he says.

A distinct price consciousness affects even high-spend occasions like Indian weddings, known for their opulence and grandeur. Weddings and other festivities around them are those special occasions when families loosen the purse strings. This year, bridal spending reached a new high after the Ambani wedding, which reportedly cost upwards of ₹4,600 crore. But let’s not forget there is more to a wedding than clothes.

Lalrempuia offers a perspective. “I don’t think a lot of people want to spend ₹20 lakh on a bridal lehnga that they’ll wear only once. They prefer spending on experiences."

This reflects a shift among India’s wealthiest toward more experiential and meaningful spending rather than conspicuous consumption where the location, the décor and the honeymoon location are as, if not more, important than the clothes.

Designer Aggarwal believes luxury designers need to cater to a diverse consumer base, from the budget-conscious brides to those seeking splendor. “There are two types of brides today: those who are more budget-conscious and those who wish to be extravagant on their special day," says Aggarwal, who ensures he caters to both through his bespoke creations and prêt line.

MORE THAN PRICING

To win over Indian luxury consumers, brands must deliver on more than just pricing.

They need to demonstrate lasting value through quality, craftsmanship and innovation.

For instance, by using vintage saris Aggarwal has created a series of bespoke “India Modern" gowns, and cultivated a following among high-profile clients like Kareena Kapoor Khan and Isha Ambani.

It’s an example of a responsible approach to be value driven, and redefining the way luxury shoppers are looking for value for money.

“Today’s consumer does think rewear, especially when it comes to special occasion pieces like lehngas," says Lalrempuia. “One of the reasons Indian women have loved the sari for centuries is that it not only has rewear value but also heirloom value."

For 2025, the key to unlocking India’s growing luxury market lies in respecting the country’s deeply ingrained value-driven approach and interpreting its meaning in innovative ways. Fashion brands will need to understand the nuanced Indian consumer—who takes a savvy, strategic approach to luxury shopping yet is expanding their spend on fashion.

Sujata Assomull is a journalist, author and mindful fashion advocate.

 

Also read: Why fashion needs a palette cleanser