Luxury brands such as Christian Dior Couture, CHANEL, Gucci, Burberry, Versace, Louis Vuitton, HUGO BOSS are embodying the principle of engaging directly with their consumers where they reside. This strategy also reflects the concentrated nature of luxury consumption in India.
Interestingly, the CEO of Bvlgari notes that only 40% of luxury consumption in India originates from just 10 cities. In contrast, in China, 40% of luxury consumption is concentrated in Shanghai and Beijing.
This underscores a significant opportunity to enhance market penetration and broaden the reach of luxury brands within existing consumption hubs across India and beyond. The evolution of this landscape warrants close observation.
In terms of luxury consumption, North India consistently leads, driven by its substantial purchasing power. Conversely, while North East India shows strong brand awareness, its economic capacity for luxury spending lags behind North India. As of 2022-2023, North India’s GDP was 5.75 times higher than that of North East India, a critical factor influencing higher income levels, employment opportunities, public services, and economic stability—all contributing to greater spending potential.
Despite the South’s robust GDP, its cultural perspectives on grandeur and luxury diverge from those prevalent in other regions.
