Will Indian luxury consumers start shopping at home?

This article is part of our new editorial package, The Future of Shopping, in which we predict how the retail landscape will be shaped over the next decade. Click here to read more. India’s high-net-worth class has traditionally done their luxury shopping overseas. Now, the opening of new malls, the aftermath of pandemic lockdowns and the loss of VAT refunds in the United Kingdom have resulted in a shift in mindset for young Indians, who are growing less interested in shopping abroad. According to a survey by Euromonitor last year, 25 per cent of Gen X and boomers in India consider shopping a key feature of their travel destinations. Meanwhile, only 12 per cent of Gen Z respondents consider shopping as a key feature. Experts predict that over the next decade, Indians will be more likely to buy souvenirs at home instead of waiting to travel for their large-ticket purchases, led by young consumers growing into their purchasing power. According to Euromonitor, Gen Z is India’s largest population, and by 2040, Gen Z and Alpha are forecast to account for 56 per cent of all consumers in India. To make the most of the shift to at-home shopping, luxury brands are landing in India and building up their local clienteling. The rise of mall culture In the summer of 2008, DLF Emporio opened its doors in New Delhi, marking the launch of India’s first luxury mall. This coincided with customers in India embracing shopping at home, says Pushpa Bector, senior executive director at DLF Retail, whereas Indian consumers were previously sceptical over the availability and authenticity of goods sold locally. Yet, as brands like Giorgio Armani, Christian Louboutin and Valentino all made their entry into the capital at DLF Emporio, this mall quickly became a hub for fine dining options and flagship stores. India’s largest luxury mall Jio World Plaza opened towards the end of last year, spanning 750,000 square feet over four levels in Mumbai. It marked the first openings of luxury stores like Saint Laurent, Valentino and Tory Burch in the city. This mall is expected to change how India shops over the next decade as more brands bring ready-to-wear collections into store spaces, says Deepika Gehani, luxury adviser and co-founder of Genesis Luxury, which brought brands Armani, Coach and Ferragamo to India. Previously, brands would focus on accessories in their local inventories, on the idea that Indians wouldn’t shop ready-to-wear at home, Gahani says. As brands increase selection in their stores across India, there’s still some catching up to do. “Those who travel extensively may still opt to shop abroad for the experience and the availability of a much larger selection,” Gehani says. Brands setting up shop in India will find a mix of customers at different wealth levels. Aspirational customers, in particular, are likely to shop at home, Gehani adds. “India also boasts a significant segment of aspirational customers, not just the affluent, who contribute to the increasing percentage of shoppers opting to shop domestically,” Gehani adds. She estimates that today, 50 per cent of luxury shoppers shop at home, and she believes that as the aspirational shoppers become luxury consumers, the playing field in India may totally change with more shopping at home. “With greater availability, there is a heightened inclination to shop and consume.” Service and selection India’s luxury multi-brand retailers are also gaining traction at home, as they’ve built trust with local consumers and expanded store count. Among the first multi-brand stores to open in the country was The Collective, which launched in 2009. It now has 17 stores in India and is planning to expand its footprint in 2025. Initially, local customers were sceptical of the selection available, and whether or not collections were a brand’s latest, says Amit Pande, head of business at The Collective. “Slowly, people started to see that they have access to the very latest at The Collective,” he says. “Everything is flown in, and in fact, sometimes, new collections get launched with us ahead of Harrods or Selfridges.” India is now on the radars of international department stores, too. Galeries Lafayette is slated to open its doors there in 2025 with a 90,000-square-foot space. It will be housed across two historic buildings in Mumbai’s Ballard Estate — a commercial hub that is currently becoming a sought-after retail area, with the anticipated store close to both Hermès and Christian Louboutin’s flagships. Another Galeries Lafayette in Delhi will open close to DLF Emporio the following year, in 2026. Rahul Prasad, managing partner at Pike Preston Partners and an advisor to Galeries Lafayette and its Indian partner Aditya Birla Group says that the company is researching additional locations in Bangalore, Hyderabad and Kolkata. Galeries Lafayette’s Mumbai and New Delhi locations will focus on international brands through periodic Indian designer capsules, with more than 200 brands in total, plus full shop-in-shops as well as a beauty, skincare and fragrance floor. The pricing strategy will cater to the “well-heeled traveller”, Prasad says. “The catalyst is simply customer service and experience with cross-brand styling, which doesn’t exist in a mall.” With more luxury department stores expected to look at expanding their footprint in India, an impact will be had on domestic luxury spend, says Euromonitor head of apparel and footwear Marguerite Le Rolland, with more brands and options available at home. Le Mill, a Mumbai-based concept store that first opened its doors in 2011, is looking to expand to Hyderabad and Delhi in the next few years, says the store’s co-founder Cecilia Morelli. She says the Indian consumer has shifted over the last decade, and describes her as “a savvy fashion buyer who does not need to buy abroad to think it was the right choice”. Morelli predicts this will continue over the next decade as well. Le Mill is known for its curation of the best brands from Dries Van Noten to Zimmermann. Like many high-fashion stores, they offer an at-home shopping service, where in-store stylists visit a VIP customer’s home to help them shop from there. This has not only grown order value, it also helps to form close relationships with clientele. While not all brands offer it, Morelli says home shopping is a crucial service in India, where service expectations are high. The price factor One of the biggest reasons that Indians shop abroad is price. “There is a consumer perception that luxury goods are more expensive in India compared to abroad due to various factors such as import duties, taxes and other operational costs. This further prompts Indian consumers to seek luxury purchases during their travels abroad,” Bector says. Brands now have started to correct this by adjusting their pricing strategies to better cater to Indian consumers. One of the major shopping havens for Indian shoppers has been London, and the loss of tax-free shopping post-Brexit has had an effect. Bector says that the “Indian luxury market has benefited from this, at a crucial time when the luxury retail landscape is actively being enhanced.” Still, “the younger generation often prefers not to wait,” adds Bector. That means they’re looking for options at home and not waiting for trips to spend. “They exhibit an impulsive tendency, particularly evident in their pursuit of the latest and quickest options in fashion.” Euromonitor’s survey found that 35 per cent of Gen Z respondents in India say: “[I] regularly buy myself small treats as I feel I deserve them.” Luxury brands are adapting to these preferences by introducing limited editions, tailored specifically for the Indian market, aligning with the desires of young consumers. Bector cites Louis Vuitton’s Rani Pink line of limited-edition heels and Bulgari’s Mangalsutra collection, both targeting an Indian consumer, as examples of how luxury brands are tapping into a younger and exclusive-hungry market. The landscape of luxury shopping in India is evolving. As more luxury brands adjust their pricing strategies and cater to local preferences, the Indian luxury market is expected to grow significantly. With the rise of aspirational shoppers and the availability of a wider selection domestically, the future of luxury shopping in India appears to be at home. Comments, questions or feedback? Email us at feedback@voguebusiness.com. More from The Future of Shopping: The Vogue Business guide to TikTok Shop What really happened with Matches and where do we go from here? Can good customer service make shopping fun again?

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