Luxury shopping in India is witnessing a significant shift, with smaller towns emerging as key growth drivers, thanks to the rise of online retail. A report by Tata Cliq Luxury reveals that cities like Botad in Gujarat and Asansol in West Bengal are now fueling demand for premium brands, moving beyond traditional metropolitan markets such as Mumbai, Delhi, and Bengaluru. This trend is largely driven by the “Henry” demographic—high earners who are not yet wealthy but have rising disposable incomes. These consumers, primarily working professionals, are actively investing in luxury goods, with notable growth in footwear, watches, clothing, and accessories. Currently, more than half of Tata Cliq Luxury’s revenue—about 55%—comes from non-metro cities, including places like Panchkula and Mysore.
To cater to this expanding customer base, global luxury brands like Bvlgari are increasingly partnering with online platforms such as Ajio Luxe. E-commerce eliminates the geographical limitations of physical retail stores, making premium products accessible in smaller cities. This surge in online luxury shopping extends beyond fashion and jewelry, with growing interest in categories like art, influenced heavily by social media. Unlike traditional luxury consumers, these new shoppers are well-informed and conduct extensive research before making a purchase.
Looking ahead, Gen Z and Gen Alpha are expected to become the primary audience for luxury brands. Their influence is set to drive the expansion of the pre-owned luxury segment, emphasizing the need for a seamless online and in-store shopping experience. Transparency from brands will be crucial in meeting their evolving expectations, further reshaping India’s luxury market.
