The key to unlocking the luxury market of India

Brands planning to make a mark in India, a global luxury hotspot, need to respect the country's deeply ingrained value-driven approach

- Sujata Assomull

The Indian luxury market, one of the world's fastest growing, is a key target for both homegrown and international brands looking to increase their market share in the coming new year.

There is definitely opportunity and growth here. According to management consulting firm Bain & Co., India's luxury market is set to expand 3.5 times, reaching $85-90 billion by 2030, bolstered by the country's economic growth. The development comes at a time when the global luxury sector is facing a slow demand in traditional markets like China, Europe and the US.

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."

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.