What: India's luxury market undergoes fundamental transformation as 43% of luxury consumers emerge from non-metro cities, driving brands to adopt integrated physical-digital approaches while emphasizing pre-owned goods and cultural authenticity.

Why it is important: This shift represents a pivotal moment in global luxury retail, as India's projected $2 trillion retail market by 2033 and growing affluent consumer base of 100 million by 2027 create unprecedented opportunities for brands willing to adapt their strategies.

India's luxury retail landscape is experiencing a significant transformation, with 43% of luxury consumers now residing outside traditional metro cities. This shift is driving major brands like Bvlgari to adopt innovative "phygital" approaches, combining online presence through platforms like Tata Cliq Luxe with strategic physical retail in emerging markets. The pre-owned luxury segment presents another significant opportunity, particularly in watches and handbags, where cities like Ajmer and Bhubaneswar show strong demand. Cultural storytelling emerges as a crucial factor, with successful examples including Bvlgari's mangalsutra and Dior's partnership with the Chanakya School of Craft. The report emphasizes the importance of authentic cultural integration, as demonstrated by collaborations featuring Indian celebrities like Priyanka Chopra and Ayushmann Khurrana, and the success of initiatives that blend Indian traditions with global luxury.

IADS Notes: The transformation of India's luxury market is supported by significant developments throughout 2024-25. February 2025 saw 27 new international brands enter India, while Bulgari's expansion to nine key cities demonstrated the viability of integrated retail approaches. Barclays projects 15-25% annual growth through 2030, supported by an affluent consumer base expected to reach 100 million by 2027. The importance of cultural integration is highlighted by India's ranking as the most attractive emerging market, while the projected $89 billion in global retail spending by Indian tourists suggests the growing influence of Indian consumers in global luxury retail.

3 opportunities for brands eyeing India’s luxury market