The luxury sector in India is doing well; brands and services have found growth in Tier 1 and Tier 2 cities. Go to Ludhiana, and you will see people driving around in fancy luxury cars, women wearing Prada, Chanel and such. Social media, and especially Instagram, can be credited with helping people across smaller towns getting to know about luxury brands and aspiring to own them. And, it is not just top luxury brands; accessible luxury too has seen a massive increase in popularity, and in a way, it is accessible luxury that eventually leads to consumers buying top-end luxury brands. Brands like Coach and Marc Jacobs are considered accessible luxury; these brands offer excellent craftsmanship but a more attainable price point. For the Indian consumer, luxury no longer means products; people are spending on luxury holidays, eating out, spa and wellness treatments.
What does this say about the luxury market in India?
Well, that's definitely on the up and up. Wealth has increased, and so has consumption across our cities. As per the M3M Hurun India Rich List 2025, India added 58 new billionaires in the last year and has created a new billionaire every week for two years. The report states that 1,687 individuals (up by 148) across 91 cities have a wealth of INR 1,000 Cr.
According to a Kearney study, India’s luxury market reached USD 7.74 billion in 2023 and is projected to approach USD 12 billion by 2028, with a growth rate expected to outpace many established markets. The report highlighted that with the availability of luxury goods here at home, shoppers are buying equally from India as they do abroad. Further, digital platforms are helping as younger buyers are using them for the convenience they offer.
So, what will be some trends we will see in the market this year?
The way we engage with luxury has changed over the years; consumers are increasingly spending on luxury experiences such as dining out, spa treatments and expensive holidays as opposed to confining their purchases to products. With growing wealth, people are comfortable consuming luxury when they please without attaching it to a life event. And, smaller bite-sized luxury purchases are equally important. For instance, a lip gloss, a pocket square or even a card holder by a top-tier luxury brand such as Chanel or Saint Laurent (YSL) is equally treasured by the consumer.
Accessible luxury will command a wider consumer base with a growing middle class and consumer awareness. Additionally, homegrown luxury brands will gain more market share given their focus on craftsmanship and cultural significance.
“India’s luxury market continues to grow because it is shifting towards meaningful, experience-led design. As we approach 2026, the dominant trend will be highly personal interiors that evolve over time rather than conform to fixed aesthetics - spaces that feel lived-in and emotional. This holds especially true for a country like India. Maximalist design is making a return, but with intention; it is not forced, instead thoughtfully layers craft, art, and texture. Finally, slow design and slow living will define luxury, where craftsmanship, tactility, and the time taken to create become as important as the final space itself, says, Pavitra Rajaram the Creative Director of Nilaya Anthology, a design studio in Mumbai.
Luxury brands will move towards leveraging artificial intelligence (AI) and digital technology to develop tailored consumer engagement strategies and create better offerings. AI is used for forecasting, which helps reduce wastage, helps develop hyper-personalised offerings and enhances consumer experience through aspects such as virtual try on and AI stylists. Then there is blockchain and AI integration that can help ensure supply chain transparency.
“Despite global uncertainty, India’s luxury landscape is entering a phase of quiet confidence. In 2026, I believe we will see an even deeper appreciation for our weaves, crafts and textiles, building on a year where India has remained at the center of the global fashion dialogue. As digital fatigue sets in, people are seeking creative expression that feels slower, more meaningful, and rooted in a simpler way of living. This shift will naturally influence design, moving towards instinct-led creation with greater clarity and restraint” says, Anita Dongre the Founder and Chief Creative Officer of the House of Anita Dongre.
She believes craftsmanship and sustainability will shape consumer choices. “Structured silhouettes, fluid draping, refined proportions and thoughtful details will take precedence over excess, allowing craftsmanship to speak for itself. Younger generations are mindful and inquisitive, asking deeper questions about sustainability and responsibility, something we have done since our inception. This gives me hope that sustainability evolves beyond a trend, becoming a standard embedded into the values and processes of fashion houses.”
According to a 2025 Bain & Company and Altagamma Luxury report, global luxury spending stabilised at similar levels to last year despite economic and geopolitical headwinds. It highlighted that new luxury markets of the Middle East, Latin America, Southeast Asia, India, and Africa show much promise, and combined, they represent a market value of around €45 billion in 2025, similar to Mainland China in scale. The report suggests that the personal luxury goods space will grow 4 per cent to 6 per cent every year, and by 2035, it will reach €525B and €625B, while overall luxury spending could range between €2.2 and €2.7 trillion.
So all in all, the point remains that luxury brands, while changing with the times and adapting to new buying trends, will have to keep the emotional connect with their consumer strong to win in an increasingly noisy market where people have high expectations and a low attention span. |
