As the festive season unfolds in India, luxury brands are optimistic about a surge in demand for their products, driven by the country’s thriving economy. Categories such as fashion, jewelry, footwear, and even cigars are poised for substantial growth, with some sectors anticipated to experience up to a 20% increase in sales during the third quarter.
DLF, a prominent luxury mall in northern India, has reported a remarkable 50% growth in categories like watches, branded jewelry, and ready-to-wear items compared to the previous year.
Pushpa Bector, the senior executive director of DLF Retail, noted, “There is a noticeable uptick in overall expenditure, with an 8% growth in spending per customer compared to the previous year. So, we are expecting increased spending across all luxury categories, such as clothing, beauty, and personal care, during the upcoming festive season. We have also witnessed a positive response from tier-2 and 3 markets.”
Leading international luxury brands, including Louis Vuitton, Gucci, Dior, and Cartier, have seen an increase in actual sales compared to the previous year. Couture designers are also benefiting from the festive season. This trend is also observed at The Collective, a luxury multi-brand retailer owned by the Aditya Birla group, where more than 35% of annual accessories sales typically occur during this period. The demand for distinctive products is on the rise as well.
Consumer sentiment is positive for jewelry brand Malabar Gold & Diamonds, owned by Malabar Gold Pvt. Ltd., which is experiencing pent-up demand, leading to robust festive season sales. The brand anticipates a 150% increase in sales compared to the previous year. To meet the changing preferences and higher disposable income, the company has launched a luxury diamond collection for this season.
The automotive market is also witnessing a favorable trend. Naveen Soni, the president of car maker Lexus India, explained that the market becomes more active during the festival season, and buyers prefer receiving their vehicles before Diwali. “We crossed our entire annual sales of 2022 in August this year and expect that we will grow at least by 40% over last year by the end of 2023. SUVs are the flavor of the season,” he said.
Unconventional luxury items, like cigars, are also experiencing growth. Raahul Kapoor, the co-founder of The India Cigar Club, stated, “This season, we are witnessing a high turnover for cigars in the midpoint price range. So, the quantity and number of people looking for well-stored and maintained premium non-Cuban cigars is much higher during the festivities.”
India’s luxury goods market is one of the world’s fastest-growing, with projections to reach $8.5 billion in 2023, marking a significant increase of $2.5 billion over 2021, according to Euromonitor International.
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