What: India is cementing its position as a growth market for luxury.

Why it is important: With rising numbers of young and affluent consumers, India has become one of the key growth markets for international luxury.

International luxury players are taking advantage of India’s rapid improvement in online infrastructure and rising numbers of young, high-net-worth individuals. Galeries Lafayette is preparing to open a 90,000-square-foot department store in Mumbai and a 65,000-square-foot store in Delhi in partnership with ABFRL, while other luxury retailers also enter the market and expand.

Experts advise caution as Indian consumers can be price sensitive and expect brands to demonstrate a connection with the local culture. However, the luxury market is expected to grow by around 3.4% from an estimated USD 5.9 billion in 2022 to USD 6.1 billion this year. The country is also slated to overtake China as the country with the highest number of millennial consumers this year.

Inside luxury’s coming-of-age in India