India’s luxury boom: via retail playgrounds and WhatsApp chats

In March, Asian Paints had a swish opening for Nilaya Anthology, its gallery-style decor store in the heart of space-starved Mumbai. Hailed as the most ambitious interior design showroom in the country, and spread across 100,000 sq.ft., it is the size of almost two football fields.

At the launch, guests sipped Veuve Clicquot Champagne while admiring wares from Milan’s haute design gallery Nilufer, Vikram Goyal’s museum-worthy brass creations, and whole rooms devoted to bespoke Italian-designed kitchens, bathrooms, home spas and furniture from Europe and the Far East. In a city where fancy store openings happen on an almost weekly basis, it was, by far, the grandest, buzziest opening party.

“This is easily India’s most luxury-focused retail concept,” says Greg Foster, artistic director at Jaipur Rugs and former editor of Architectural Digest India. “To have designs from Nilufar, one of the world’s most important galleries, alongside fabrics from some of the most prestigious European textile houses, fabulous carpets from Jaipur Rugs, certified Indian antiquities from Natesan’s [and more], all under one roof, would be a fabulous concept anywhere in the world, let alone in Worli.”

Foster recalls how the debut collection of art works shown by Sabyasachi’s Art Foundation — a series of female forms by artist Atish Mukherjee, in a contemporary take on the Bengal School of Art — were sold out on opening day. The prices ranged from ₹13.5 lakh to ₹52 lakh, and “people were fighting to buy them”, he shares.

India is experiencing a retail boom, and luxury consumers are increasingly spoilt for choice as a proliferation of high-end, museum-esque stores are opening across the country. Western high-end brands too are launching targeted collections for the Indian customer. Four years ago, Bulgari, the Italian luxury fashion house that retails, among other things, classic jewellery with price tags that can easily go over ₹1 crore, debuted its version of the mangalsutra. The brand, which priced the piece at a fraction of their in-house designs, at around ₹13 lakh, hired actor Priyanka Chopra Jonas as its brand ambassador.

In 2022, Louis Vuitton, the French luxury fashion house, which generated €20 billion in revenue globally, produced a capsule Rani Pink collection of shoes just for India for the festive season. And last year, long-time Indophile and fancy shoe designer Christian Louboutin, whose designs walk down red carpets at Cannes and the MET Gala, showcased a Diwali edit with velvet and brocade sandals and stilettos embroidered with zari.

Many buyers who once limited their purchases to when they travelled abroad are no longer waiting to do so, instead preferring to shop in India. A day before luxury content creator Pooja Advani was leaving for her summer holidays to the U.S., she got a WhatsApp alert from a salesperson at Le Mill in Mumbai. The chic multi-brand luxury concept store was letting her know that the latest Alaïa collection had arrived. Advani, known for her trendy style in the city’s social circles, had wanted a pair of the celebrated Parisian brand’s sandals, prices for which start at an average of $900 (approx. ₹77,000). She did a quick online price comparison between India and the U.S., and immediately bought it.

“I got the tip in advance, they had my size, the price compared, and I didn’t have to leave my home. It’s these small conveniences that make it easier to shop for luxury in India,” she says. Advani is just one of many clients that the Le Mill sales team has been steering towards the most au courant fashion as soon as it lands in the store — through a mix of WhatsApp messages and calls. Hitesh Rathod, creative director of Le Mill, says: “Many key pieces are sold even before they get uploaded on our website because our VVIP clients know exactly what they want,” he says. Luxury retail is not just about exclusivity anymore, it is also about accessibility. Especially in India.

Why luxury retail is thriving in India

Over the past decade, a new affluent class has emerged, as the start-up culture and rise in stock market performance led to greater wealth generation amongst the top 2% of the population, many of them younger entrepreneurs. This class is more brand conscious and globally exposed. And after COVID-19, there appears to be a psychological shift amongst the rich to enjoy their lives and live in the present.

This means that while there are still big numbers online (the e-retail market has surged to approximately $60 billion in gross merchandise value, according to global management firm Bain & Company), there is renewed interest in offline. “We are definitely seeing a strong resurgence in offline retail, particularly in the premium and luxury lifestyle segment,” says Abhishek Agarwal, founder of Purple Style Labs, which owns Pernia’s Pop Up, the multi-brand fashion store, which recently took over the lease of the iconic 53,000 sq.ft. Ismail Building in Mumbai’s Fort neighbourhood. Its counterpart in Chennai, on upscale Khader Nawaz Khan Road, is equally popular among wedding shoppers who browse their aisles and iPads, the latter making it easier for shop assistants to source from stores anywhere in the country.

“There is a noticeable rise in omni-channel behaviour, where people are browsing collections online but coming to our stores for a deeper experience. While the pandemic significantly accelerated digital adoption, physical retail has come back with greater experiential demand,” he adds. Pernia’s Pop Up is planning more large format stores in Mumbai, Delhi and New York.

Rise of the single brand store

The proliferation of big and new players across India is strengthening this, be it malls such as Palladium and Emporio or the Ambani’s Jio World Drive — which opened in 2021 with a roster of luxury brands making their debut in the country — or single-brand stores. The Collective, Aditya Birla Fashion & Retail’s multi-brand offering, for instance, is growing in scale, and recently opened three new stores, bringing its total number to 40 across India.

Adding to the mix is a slew of international brands entering our shores. Swiss watch imports grew nearly 30% in the first three months of 2025. Brands such as Breitling opened new boutiques in Hyderabad, Chennai, Pune and Gurugram, while Frank Mueller has plans to expand in Mumbai. “Today’s luxury retail is about immersion, not just inventory. Store formats — whether standalone or mall-based — are being designed to create a high-touch, narrative-driven experience,” says Pranav Saboo, MD & CEO, Ethos Limited. “At Ethos, we’ve adopted a hybrid model. Our mono-brand boutiques are housed in luxury malls to capture footfall, while our large-format experiential spaces like City of Time in Gurugram, allow for deeper engagement. Interestingly, we’re seeing hefty-ticket purchases even in mall stores, provided the brand story and experience align with consumer expectations.”

Beauty isn’t far behind

Long gone are the days when prestige beauty products — part of celebrities’ skincare routines, from actor Jennifer Lopez (a La Mer fan) to musician Taylor Swift (Chanel and Charlotte Tilbury) — were covetously purchased by Indians while on holiday. Today, Reliance-owned Tira Beauty, which debuted in 2023 to focus on high-end beauty, has opened 17 stores across India, while Nykaa announced plans for 350 stores by the end of the year.

At the launch of the sprawling Tira store at Palladium two months ago, women across age groups were testing YSL lipsticks, Estée Lauder and La Mer skincare, Prada perfumes and K-beauty offerings while sipping on cocktails and Champagne. “Having a big store like this in the heart of Mumbai to browse in and test products, with good sales staff is helpful. Plus, it’s fun to do it with friends,” says Anushree Sardesai, 24, a content creator and senior stylist at Hello! magazine. “I’m a big fan of French brand Caudalie’s beauty elixir and used to wait for someone to visit France to get it. Now, the brands that I like to buy are at my doorstep and I don’t have to deal with import hassles and duty.”

Beauty is growing at a 10% rate year over year, according to a 2024 McKinsey report, projected to hit $38 billion in the next three years. With a much younger population attuned to the latest global beauty trends and the growth of social media apps such as Instagram, looking good has never been as important. The much-awaited entry of Paris-based upmarket department store chain, Galeries Lafayette — where well-heeled travellers often make plans to spend a day browsing high fashion and beauty — reported to open in Mumbai’s historic Horniman Circle area later this year, will further test luxury retail’s buoyancy.

Don’t overlook small towns

Meanwhile, the growth in luxury retail spending is no longer generated from the big cities alone — not surprising in a country with an online penetration of 52%, according to the Internet and Mobile Association of India (IAMAI) and Kantor. Tata Cliq Luxury reported 55% of its online sales came from non-metro cities such as Mysuru and Panchkula last year. In fact, at the release of a new luxury report, ‘Thinking Beyond The Cart: Elevating Luxury E-Commerce’ at a Mumbai gathering in January, its CEO Gopal Asthana told guests that the working population in smaller towns is “earning well and actively seeking out luxury experiences and goods”.

Rathod of Le Mill shares that he “recently sold a Chloe Kerala 25 shoulder bag [which retails upwards of ₹1.6 lakh] to someone living in Rourkela on WhatsApp, while last week, it was an Alaïa top [that starts around ₹70,000] to a client in Chandigarh”. According to him, the store regularly gets orders from Raipur, Rishikesh and Ludhiana either via Instagram or WhatsApp, which are then serviced via video calls and store tours.

From beauty to home decor

Interestingly, luxury retail is also growing across categories — in metros and elsewhere. While jewellery and fashion have always been important segments, now home décor and beauty are growing, too. “It becomes natural for the Indian customer to want to shop in India where they have more options, attention to detail, and the ability to customise,” says Pavitra Rajaram, who curates the luxury offerings at Nilaya Anthology. “A lot of our customers want to take a piece home and try it. And you can’t do that if the sofa is sitting in Italy.”

Foster, of Jaipur Rugs, echoes this. He notes that people are prioritising spending on their homes like never before. “Creating a beautiful home is more important today than a luxury car purchase or leisure travel. At Jaipur Rugs, for example, we’re seeing an appetite for new collections by Gurjeet Singh, Tatiana de Nicolay and Richard Hutten — pieces sell before they are anywhere near the showroom.”

Home interiors is projected to grow to $71 billion by 2033, according to research firm IMARC, driven by the 140 million consumer base that has discretionary spending power. “If you think of tier 2 and 3 cities, this is the best time to be in this business because I don’t see things slowing down for home and interiors,” says Astha Khetan, co-founder of Udaipur-based furniture gallery House of Things.

Wait, don’t rejoice

Despite all the growth, Ravi Thakran, chairman of investment firm Turmeric Capital and formerly head of LVMH-owned L Capital in Asia believes the enthusiasm for rapidly expanding luxury retail ought to be tempered. At the BoF VOICES conference last November in the U.K., seen as the Davos-equivalent for the fashion world, I noticed conference attendees discussing China’s slowdown and global economic headwinds. One recurring theme in many private conversations was the bright spot posed by India, where people talked about how luxury brands that had a strong narrative and were committed to the market would do well. Thakran, however, speaking at VOICES, was of the opinion that “India is now growing faster than China. But when it comes to the luxury market — talk of any brand, be it Mercedes-Benz, BMW, Louis Vuitton, Cartier — India is less than 1% of sales. The country’s stupendous growth is right in front of us, but the bulk of that growth is led by a very young population with a very low per capita income”. He adds that, “If you are an aspirational player, go to India today. In luxury, you still have to work [at gaining the market you need in the long term].”

His point: though Indians are spending on brands, it is for a smaller retail value price; consumers are still in growth mode. But western brands are increasingly coming to the country because of the potential for the value of the basket size (number of items a customer purchases in a single transaction) to grow.

Designers such as Payal Singhal agree. “Yes, the richest 2% in India is booming, given the enormous wealth creation that’s never happened before. But if you look at mid-luxury, which is where we come in, the market is struggling,” she says candidly. “There is inflation, people are losing jobs.” A widely reported story of economic data shared by Saurabh Mukherjea, founder of Marcellus Investment Managers, indicated that middle class income only increased at 0.4% over the past decade, while inflation had eroded purchasing power by 50%. Those making more than ₹1 crore a year, meanwhile, are growing.

Singhal, who used to have stores in New York and New Jersey, and celebrated her eponymous brand’s 25th anniversary last year, has seen the ups and downs of the retail business. “Brands like ours are either pivoting to higher segments to tap into that luxury 2% market, or lower, for mass appeal. Obviously, I decided to go higher, but I still wonder, what piece of the pie is everyone getting and how much will that 2% keep buying?”

The writer is a Mumbai-based journalist and author.