At luxury hotspots across the country, early trends point to a revival of sales momentum in the second half of the fiscal year after a lukewarm first half.
There is optimism that the ongoing festive season, including weddings, will make up for lost business after luxury sales slowed early this year compared to both 2022 and 2023, according to industry experts. The reasons were a mix of high summer temperatures, the general elections, and a general slowdown in the consumer shopping sentiment.
Let’s start with Delhi. Soon after opening for the day on a lazy Saturday afternoon in November, the Aquazzura store in the capital’s The Chanakya Mall is seeing brisk sales even after several long weekends of festivities, including Diwali parties. Despite steep prices—Aquazzura shoes retail from ₹60,000 to several lakhs—customers are making swift purchases through sales representatives on video calls, with deliveries being packed to send to their homes.
The Italian women’s footwear retailer, which famously dressed actor Meghan Markle for her wedding, had opened its doors earlier this month through local partner DS Group's luxury arm, DS Luxury.
The same Saturday afternoon, Mint spots a customer buying at least four pairs of pants and jeans in size 34 from Italian luxury fashion brand Brunello Cucinelli. The 50-something customer is also mulling buying Cucinelli's latest, most sought-after item this season—a ‘Nubuck’ shearling bomber jacket made of top-grain leather softer than suede—priced around ₹8 lakh.
DLF-run The Chanakya Mall has recently seen the launches of new brands like menswear brand Golden Goose, clothing and accessory brand Amiri, and others as well, which has helped tremendously with footfalls.
In September, Delhi's other luxury mall, DLF Emporio, hosted the ‘treasury of trousseau’ shopping festival ahead of the wedding and Diwali season, which brought in sales in jewellery, couture and gifting. It was an impactful three days from 3-7 September.
“The first half of this year was tepid in terms of sales. While we expect this year to grow in double digits, the second half should be much better given the long wedding season ahead,” said Pushpa Bector, senior executive director and business head of DLF Retail.
A delayed and long winter in the north may also add to sales in the second half for luxury, she added.
Swing to the south of India, and the story is no different—hopes of winter and festival sales making up for slow sales earlier in the year.
“Overall leading up to the festive season wasn’t the best because a lot of people were travelling out of India. But luxury has shown strong sales figures for UB City in October and has done well year-over-year,” said Uzma Irfan, director of UB City and Prestige Group malls in Bengalurul, which house luxury brands like Louis Vuitton, Rolex, Burberry, Canali, Jimmy Choo, Emporio Armani and others.
Accessories, clothes for women, men, watches, and home as a category across luxury brands in general are doing well, Irfan said. “Almost every day, we are getting a request for a Rolex watch. Luxury luggage, too, has seen strong growth,” she added.
Mumbai’s Reliance-owned Jio World Plaza has also seen a host of new store openings including luxury accessory brand Valentino, a couture store by Manish Malhotra - both of which are run by Reliance Brands Luxury. It also saw the opening of luxury restaurant, Armani Caffe.
Gaetan Guillosson, managing director of French luxury goods maker Cartier’s India business, said it is a very good time to be present in the country. “The product demand, both for our luxury watches and jewellery, has become better in the last two years,” Guillosson said, pointing out that Cartier isn’t competing with the dominant local jewellery makers but is looking at more niche jewellery purchases.
“On the other hand, we see that the demand for watches in India is now very mature. The consumers know exactly what they want,” Guillosson told Mint.
Historically, the company sold more watches in India than jewellery, but now the business mix is more balanced. This year’s highest selling jewellery items in India, according to Guillosson, are trinity bracelets with three types of metals starting around ₹1.5 lakh. In watches, it is The Ballon Bleu watches, which start at an average ₹15 lakh. Its other limited-edition watches, though, still have a long wait time due to the heightened global demand for special edition pieces.
According to data from the Federation of the Swiss Watch Industry, from January to September this year, India imported watches worth Swiss Franc 188 million ( ₹1,790 crore) or about 1% of the entire global sales of Swiss watches, growing 22.5% over the same period last year.
To be sure, part of this growth could also be because of currency fluctuations and the stability of the Swiss Franc against most other currencies around the world.
Luxury watch retailer Kapoor Watch Co. is seeing similar growth with strong sales from September and October. “The sales are strong but perhaps not at the same numbers as they were in 2022 or 2023,” said Pratiek Kapoor, the company's director. “The sweet spot for watches is ₹2-6 lakh or where the core business lies.”
For Kapoor Watch Co., the shopping season is kicking in strongly now, with the expectation that there should be growth in the coming months of 2025, though at a more normalised level, similar to what it was pre-pandemic. The company has stores in north India and is preparing to open a store in Pune next.
Indian luxury watch retailer Kapoor Watch Co., is seeing a similar growth with strong sales from September and October. "The sales are strong but perhaps not at the same numbers as they were in 2022 or 2023, said Pratiek Kapoor, the company's director. The sweet spot for the watches are ₹2-6 lakh or where the core business lies," he said.
China's economic slowdown is prompting premium global brands to shift focus to its southern neighbour, India, which boasts a growing base of 849,000 dollar millionaires, as per the UBS Global Wealth Report 2023.
Irfan of Ub City in Bengaluru added that the expectation is that 2025 will be a better year for luxury retail as the country's luxury market -- albeit small -- is the fastest growing market in Asia, with continual expected growth. "Disposable income is increasing in India due to multiple contributing factors. The focus of the sector is shifting from merely selling products to crafting memorable in-store experiences. Luxury brands are prioritising exclusivity, offering bespoke experiences such as private events for top clients and early access to limited-edition products. Meanwhile, the growing awareness around sustainability is prompting brands to adopt more eco-conscious practices, aligning with the values of modern consumers," she added.
Even for Kapoor Watch Co., the shopping season is kicking in strongly now so the expectation is that there should be growth in the coming months of 2025, though at a more normalised level, similar to what it was pre-pandemic. Deloitte India estimates that the country’s luxury goods market could soar to nearly $30 billion by 2030.
Aquazzura too is mulling a second store in Mumbai in the coming years.
