The luxury market in India is expanding into smaller towns, with brands like Gucci and Louis Vuitton gaining traction beyond major cities. Tata CLiQ Luxury reports significant sales of pre-owned items in locations such as Nagpur and Aligarh, contributing to 55% of its revenue from non-metro markets. Online shopping has doubled, with Montblanc noting increased demand from over 320 cities. Additionally, luxury watch sales are rising, and retailers like Ethos Ltd are rapidly expanding their presence, reflecting the country's evolving consumer aspirations.
The trend of high-end consumption is gaining momentum across India, extending beyond the well-known metropolitan areas. Luxury brands, including Gucci and Louis Vuitton, are finding a growing customer base in smaller towns and cities.
This year, Tata CLiQ Luxury has reported remarkable sales of pre-owned luxury items in various locations such as Ajmer and Nagpur, where Rolex watches have been sold, and in Nadiad and Aligarh, where Mulberry handbags are in demand. Bulgari products have also found buyers in Etah and Karimnagar.
“Ecommerce has enabled the luxury industry to increase its reach and become more accessible,” noted Gopal Asthana, CEO of Tata CLiQ. He highlighted that around 55% of the platform's revenue is now generated from non-metro markets. Additionally, the TimeVallee portfolio, which includes esteemed brands like Cartier and IWC, sees approximately 40% of its sales originating from smaller towns. “The growing demand not only reflects the evolving aspirations of consumers across India but also reinforces our dedication to making premium and luxury brands accessible nationwide,” Asthana emphasized.
The surge in online shopping from smaller towns is evident, with Neeraj Walia, managing director and CEO of Montblanc India, reporting that online business has doubled compared to last year. “We see clients picking up limited editions and special products from Ranchi, Kanpur, Guwahati, and Gwalior. We are now servicing over 320 cities, up from around 230 just a year and a half ago,” Walia shared, adding that leather products are particularly thriving.
Travel retail is also flourishing, thanks to improved flight connectivity. “We have boutiques at Bengaluru and Delhi airports, and we notice clients from non-metro areas purchasing products while transiting,” Walia said, reflecting on the broader accessibility of luxury goods.
Sandeep Ghosh, group country manager for India and South Asia at Visa, noted that India's growth story is flourishing in tier 2 and tier 3 cities, driven by a youthful demographic and a burgeoning middle class. “Insights from our upcoming Visa Consulting & Analytics India Study show that in the last five years, the number of credit cardholders spending above ₹2 lakh annually in tier 3+ towns has quadrupled, compared to a 1.4x growth in tier 1 cities—indicating a democratization of affluence,” he explained.
Luxury watch sales are also on the rise in these smaller markets, propelled by increasing digitalization. Sanjay Mishra, director of FM International Watches & Jewellery Pvt Ltd, noted, “Every Indian market has its own significance, such as Ahmedabad for high-spending capacity, and Pune for luxury watches. Lucknow and Kochi are emerging markets, and Surat has shown promise due to its spending levels. Some customers are investing upwards of ₹26 lakh annually on luxury goods online, and we plan to establish a presence in Ahmedabad by 2025.”
At Luxepolis, a marketplace for certified pre-owned luxury items, sales from tier 2 and tier 3 locations have surged to 52% this year, up from 42% two to three years ago, according to founder Vijay KG. “Our customers are now spread across markets such as Surat, Jaipur, and Udaipur, with increased awareness leading to demand for niche brands like Givenchy and Chloe,” he added.
Ethos Ltd, a prominent retailer of luxury watches, is also expanding its footprint, launching new boutiques in Kochi, Dehradun, and Mangaluru. “Since April 2024, we have opened 12 new stores, with plans for 13 more by the end of the financial year 2025, reflecting our commitment to rapid expansion into new cities,” said MD and CEO Pranav Saboo. The company is currently operational in 26 cities with a total of 72 stores, further highlighting the growing accessibility of luxury products across the nation.
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