Editor’s Note
India’s luxury market, though currently a small slice of the global pie, is projected for explosive annual growth of 15-25% over the next seven years, potentially becoming a €38 billion sector. This analysis from Barclays highlights the country’s emergence as a key frontier for luxury brands.
According to a recent report by British investment bank Barclays, India, the world’s most populous country, is emerging as the next frontier for the luxury market. Although it currently represents only about 2% of global luxury sales, the market is projected to grow by 15-25% annually over the next seven years, potentially reaching up to €38 billion (approximately 56 trillion KRW). As of 2022, the size of India’s luxury market was $6 billion (approximately 8.2 trillion KRW).
However, the report assesses that luxury brands do not currently view India as a ‘second China’. Bernard Arnault, Chairman of LVMH (Moët Hennessy Louis Vuitton), has pointed out the market’s challenges:
Nevertheless, cities like Mumbai, New Delhi, and Bengaluru, which are home to about half of India’s wealthy population, are seen as having growth potential. Major brands such as Louis Vuitton, Dior, Gucci, and Cartier are already present at Jio World Plaza, India’s premier luxury shopping mall. French department store Galeries Lafayette also plans to enter Mumbai by the end of this year, following its New Delhi launch, with Christian Louboutin taking a similar approach.
Barclays also noted that India’s luxury watch market is growing at 12.5% annually and sees opportunities in the jewelry category. The report states:
Based on feedback from mall operators, brands like Gucci, Saint Laurent, and Balenciaga are also considered to have high growth potential in the Indian market, alongside established names like Louis Vuitton, Chanel, and Dior.
Driven by increased consumption from the middle class, the premium beauty market is also expected to grow rapidly. Sephora, which operates 26 stores, formed a new partnership at the end of 2023. Major local beauty retailers like Nykaa, Shoppers Stop, and Tira are expected to expand their store count to around 500 within the next 2-3 years.