India, the future Eldorado of global luxury?
While Western luxury markets are showing signs of slowing down, a new territory is attracting the attention of the industry’s big names: India. According to a study by Kearney entitled India: the next luxury hotspot? the country could reach $12 billion in luxury goods sales by 2028, up from $7.74 billion in 2023.
Economic growth redefines the sector’s priorities
India’s economic dynamism – with GDP expected to grow by an average of +8% per year between 2022 and 2027 – is already attracting many international brands. Hermès is strengthening its retail presence, Estée Lauder is creating a beauty incubator, L Catterton (LVMH) is developing new investments, while Accor is inaugurating a Raffles address in Jaipur.
This trend can be explained by rapidly changing consumer profiles: 1.5 million Indian millionaires by 2027. These ultra-rich are joined by an emerging class of “ambitious aspirationalists”, eager for status objects or quiet luxury products with high investment value.
Swiss watchmaking leads the way
Not all segments are growing at the same speed. The study highlights the expected explosion of the Swiss watch market, boosted by a trade agreement with the European Free Trade Association that will reduce customs duties over seven years. The result? A projected growth rate of +18% per year, well ahead of fashion (+7%) or jewelry (+6%). India could thus join the world’s Top 10 watchmaking markets by the end of the decade.
A promising market… but a complex one
Despite these tempting prospects, Western brands have to contend with strict regulations: high taxes (28% on luxury goods), limited commercial infrastructure and complex logistics. All these factors have long hampered local development.
But the opportunities are there, provided we adapt. This requires partnerships with Indian players, but also a better understanding of cultural expectations: valorizing local know-how, paying attention to colors in jewelry, and integrating commercial calendars based on national or family celebrations.
Also read: Accor focuses on prestige: the move upmarket is gathering pace
