What: Luxury is boosting sales in Diwali in a very visible way for the first time.

Why it is important: Another sign of India gradually replacing China in terms of strategic importance in luxury and retail.

This Diwali, luxury items are in high demand in India, with a surge in sales noted by retailers and companies due to a flourishing economy. Brands like Louis Vuitton, Dior, and Gucci are seeing increased sales, with customers spending more than in previous years. Exclusive festive products are being introduced, such as Bulgari's Mangalsutra and Jimmy Choo's Diwali collection, with Gucci launching a special gold version of its Horsebit 1955 bag. Luxury malls in cities like Delhi and Bengaluru are witnessing consistent bookings and growing demand for unique and distinctive luxury goods. Sales are also boosted by the availability of products locally that are otherwise sold overseas.

The trend extends to high-end chocolates with Laderach opening its first store in India, and luxury pastry brand Maison Laduree offering special Diwali treats. Even the pre-owned luxury watch market is experiencing a significant increase in sales, with a 3x to 4x jump expected this quarter. This shift in consumer behavior reflects a greater inclination towards luxury spending and gifting during the festive season.

Luxury boosts Diwali sales in India