Targeting younger consumers and lower tier cities
The luxury goods market continued to show significant growth in 2019, driven by dynamism in a number of personal luxury categories. India has one of the youngest populations in the world, and designer apparel and footwear (ready-to-wear), luxury eyewear, luxury portable consumer electronics, and super premium beauty and personal care all saw strong performances driven by manufacturers’ successful efforts to target the sensibilities and lifestyles of Millennial and Gen Z consumers.
Growing focus on sustainability across categories
With increasing awareness of environmental issues on the part of both government and consumers, sustainability is becoming an increasingly important issue across a range of categories in the Indian luxury goods market. Initiatives being introduced by luxury hotels include efforts to reduce the use of single-use plastic, as with ITC’s launch of the SunyaAqua water brand, which is packaged in reusable glass bottles and purified at each hotel by a new purification system in order to reduce the environmental impact of transportation.
Attracting growing number of major foreign players
Premium and luxury car manufacturers and luxury hotel players dominate the rankings in luxury goods in India because of the high prices commanded by their core offer. LVMH Watch & Jewellery India was the only diversified personal luxury player to appear amongst the top 10 companies in the market in 2018.
Consumers appreciate the advantages of store-based distribution
Store-based retailing continues to dominate luxury goods retailing in India. Consumers investing in expensive goods and making purchasing decisions based on a range of aesthetic factors like to gain first-hand experience of products.
Sensibilities of younger consumers set to exert a growing influence
The Indian market is forecast to see continued strong growth over 2019-2024, driven by an increase in the number of high-income individuals and the ongoing expansion of a young urban middle class with aspirational attitudes. Appealing to the sensibilities and preferences of younger consumers will become increasingly important for luxury brands across categories, as India’s large number of Millennial and Gen Z consumers drive the market’s expansion.
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Source : Euromonitor