In India’s diverse retail scene, luxury fashion stands out like a sparkling gem, drawing in both picky shoppers and big international brands. Leading the charge in this exciting journey is Gopal Asthana, CEO of Tata CLiQ, a platform for luxury lifestyles in India. Asthana’s deep understanding sheds light on how India’s luxury market is changing and growing, telling a captivating story of progress, change, and dreams. Amid a booming economy and changing shopper preferences, Asthana’s viewpoint reveals how tradition and modernity, as well as exclusivity and accessibility, are coming together to reshape luxury shopping in India.
Asthana believes that India’s economic strength positions it as a beacon of growth in the global luxury market. “India’s luxury market is expected to grow to 3.5 times its current size and reach the US$200 billion mark by 2030,” said Asthana citing a Bain & Company report.
Contributing Factors
According to him, several factors contribute to this optimistic outlook. Asthana emphasized, “An increase in economic growth, increased disposable income, rising internet penetration leading to increased awareness and exposure, increasing demand from non-metro markets, a growing middle class, High Net Worth Individuals (HNIs) buying luxury products in the country, the emergence of newer cohorts of consumers like Gen Z, and the youth purchasing luxury products in new categories are all contributing to the expansion of this industry. The growth of the industry is also being driven by first-time luxury customers. As the Indian economy grows, there will be a spike in the top-tier consuming class as well as the aspirational middle class.”
Most in Demand: Luxury Apparel
Within the luxury segment, apparel is one of the key categories witnessing an upward trend. “While homegrown brands are thriving in the country and globally, international luxury fashion houses such as Louis Vuitton, Gucci, Balenciaga, and others are making significant inroads into the Indian market, capitalising on the aspirational desires of consumers for iconic brands and high-quality craftsmanship,” Asthana elaborated.
Accessibility to Luxury Retail
He further underscored the significance of online platforms in democratizing access to luxury, thereby augmenting the industry’s reach and appeal. “The adoption of digital transactions by brands and consumers has further contributed to the growth of the industry,”
In addition, the consumption of social media has impacted the fashion preferences of customers, especially in non-metros, and consumers today are looking forward to an omnichannel experience that allows them to switch between online and offline effortlessly.
Sustainability
Within the luxury apparel segment, Asthana observed a notable surge in demand, especially for sustainable and ethically produced garments. “When it comes to consumer preference and trends, while logo love is still prevalent, luxury consumers in the country are associating luxury with being purposeful, authentic, craftsmanship, conscious consumption, and more. Sustainability is another key theme. There is an increasing demand for sustainable and ethically produced apparel among consumers,” Asthana noted.
“Consumers today are conscious of their consumption, which is encouraging brands to prioritize sustainability,” he further added. This shift in consumer ethos mirrors a broader global trend towards sustainability and responsible fashion.
What’s Trending
Asthana highlighted the emergence of new consumer cohorts, such as Gen Z, who wield considerable influence in shaping luxury trends. Their preference for oversized and gender-fluid fashion mirrors a broader societal shift towards inclusivity and self-expression. Moreover, “In women’s wear, apart from ready-to-wear, bridal wear is a key category that is encouraging the growth of the luxury fashion segment in the country,” Asthana noted.
Expansion
“At Tata CLiQ Luxury, India’s premier luxury lifestyle platform, the apparel category has always been a strategic focus and is one of our top-performing categories on the platform. Apart from metros, we get a lot of orders from the small towns of Assam, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh. Our focus is on strengthening the category further by introducing exclusive brands on the platform that cater to the evolving tastes and preferences of consumers,” Asthana concluded.
As India continues its trajectory of economic growth, the luxury retail sector is poised for exponential expansion. Gopal Asthana’s insights underscore the multifaceted drivers underpinning this growth, from rising disposable incomes to shifting consumer values towards sustainability and inclusivity. With Tata CLiQ Luxury at the forefront of this evolution, the future of luxury retail in India promises to be both vibrant and inclusive, catering to the diverse tastes and preferences of a burgeoning consumer base.
