Affluent Indians drive sales for luxury labels

Luxury surge

- Varuni Khosla

Affluent Indians are spending more on high-end luxury, driving sales of the world's top labels despite slowing consumption in the country and a slump in China, one of the biggest markets for fashion giants.

The local arms of Louis Vuitton, Christian Dior and Hermes together sold ₹1,400 crore worth of clothes, bags and other merchandise in India in the year ended March 2024, according to their filings with the Registrar of Companies, accessed exclusively through the business information platform Tofler. The three companies generated sales equivalent to nearly two-thirds of entire India business of the Swiss watch industry, which sold timepieces worth ₹2,074.8 crore between January and October this year in the country.

"What we've noticed now is that while people generally are spending less often on their luxury goods purchases compared to previous years, they are buying more valuable items," said Raahuul Kapoor, founder of Delhi-based Luxury Ampersand Frolics, which offers consultancy services to luxury brands and brings its own brands to India. "The industry has seen growth because of consumption, but also due to price hikes that luxury businesses have taken overall."