Luxury retail represents the pinnacle of high-end shopping, marked by exclusive store experiences, exceptional customer service, and premium products.
With the luxury retail market in India expected to reach $30 billion by 2025, it’s clear that this sector will play a major role in the retail industry.
Having a grasp on how luxury brands adapt to customer expectations and market trends is crucial since the luxury market is dynamic.
In this article, we’ll discuss the key characteristics and the latest trends shaping the luxury retail in India.
Understanding Luxury Retail in India
So, what is luxury retail? By general definition, luxury retailers sell high-end goods at a very premium quality and price.
However, the term “luxury” in retail goes beyond just the products itself. This includes the entire in-store & after sales experience, customer service, and the relationship with the brand.
When it comes to retailing, luxury brands create unique, memorable store experiences with exquisite store layouts and an overall atmosphere. Every little detail is crafted to evoke a sense of exclusivity.
While luxury retail, at the core, hasn’t changed much, the market trends, however, are changing rapidly. Moreover, luxury brands tailor their marketing strategies according to these trends and the changes that will take place.
Let’s go through the major trends that are shaping the luxury market to get a clear look at luxury retail’s future.
Trends Shaping the Luxury Retail Market in India
Redefined Exclusivity
Disposable income is increasing in India. In fact, the total luxury retail is expected to reach $8.29 billion by 2028. So, the number of people who can get their hands on these luxury brands is on the rise. Because of this, the very definition of exclusivity is changing as we speak.
Luxury brands are now ramping up their exclusive appeal even more for high-paying customers. For example, Louis Vuitton often conducts events exclusively for its regular, high-paying clients.
Similarly, Gucci has introduced private client services, which include exclusive previews of new collections and access to limited-edition items for their most valued customers.
Demand for Pre-owned Luxury Brands
Generally, luxury products come with a hefty price tag, which makes it difficult to reach a broader audience. But not anymore, with the increase in demand for pre-owned luxury products.
In India, sites like Luxepolis, Zapyle, and Confidential Couture specialize in pre-owned luxury items. These platforms aim to bring high-end fashion to a wider audience by offering authenticated, pre-owned pieces at more accessible price points.
This approach is set to penetrate the middle-class market, making luxury shopping more attainable to a broader demographic. So, luxury retail in India is expected to reach newer heights in the coming future.
Ethical Shopping
Consumers are becoming more and more aware of ethical practices followed by their favorite luxury brands. Globally, this is one of the major reasons for the increase in pre-owned market penetration.
To meet this expectation of eco-conscious consumers, many luxury fashion brands such as Prada, and Louis Vuitton have started eco-friendly packaging. This gives a sense of responsibility and sustainability that these brands have grasped.
Gucci went one step forward and introduced their “off the grid” lineup of products. These products usually have sustainable and reused materials while maintaining premium quality. Going forward we can expect many luxury fashion brands to adopt similar approaches to their products.
Infusion of Augmented Reality (AR)
Traditionally, in retail stores, trying out different products can be time-consuming for some. With the advent of Augmented Reality (AR), this process has become much more effortless, especially in luxury retail market in India.
Customers can now quickly visualize how a product would look on them. So, skimming through different products has become much easier. This not only results in a better overall experience but also paves the way for upselling opportunities.
For instance, Prada has already started integrating AR in their store to help customers visualize products on themselves before making a purchase decision. These technology advancements will shape luxury retail in India for better.
Influencers Shaping Trends
With the increase in users of social media like Instagram, Facebook, TikTok, and so on, influencers have the ability to impact fashion trends on a greater scale.
Many luxury brands utilize these “luxury lifestyle influencers” to promote their products to draw in more customers. Gen Z, in particular, is highly influenced by social media trends and looks to influencers for style inspiration and product recommendations.
This approach not only enriches the brand visibility but also makes the brand stay relevant to existing and new customers.
Experience > Products
As we mentioned earlier, the overall luxury retail sector is shifting from merely providing products to delivering exceptional in-store experiences for its customers.
While the quality of the products remains crucial, the in-store experience is equally important, and brands understand this. By adopting AR in their stores, listening to eco-conscious customers, and building genuine connections through clienteling, luxury brands are demonstrating their commitment to improving the customer experience.
So, the overall focus is now shifting more toward creating memorable, personalized interactions that resonate with modern consumers.
Bottomline
These shifts highlight the rapid growth of the luxury shopping market. Be it any luxury brand in the fashion sector, staying on top of these trends will help them stay relevant and maintain their brand image.
With all the points we’ve discussed, the luxury retailing in India is looking vibrant and poised to soar new heights by penetrating a wider range of audience.
How Can We Help You?
GeoIQ is a data-driven location AI platform. We help retail brands in their expansion journey by finding the ideal locations for their new stores where they can maximize revenue and eliminate the risk of store closure. We have a range of solutions suited for the sector such as revenue prediction, market footfall trends, identifying the total addressable market, trade area, shopper origins, and much more.