Why India Matters for the Global Luxuryscape, explains Fondazione Altagamma's Stefania Lazzaroni

INDIA IS ONCE AGAIN at the centre of conversations regarding markets with the highest growth potential for the high-end segment. Currently, the personal luxury goods market in India is estimated to be worth around €3 billion, according to Bain & Company, with projections indicating that by 2030 the broader luxury market — including automobiles, hospitality, design, yachts, and more — could reach around €80 billion. The outlook for brands in this market is optimistic, driven by cyclical factors such as rapid urbanisation, the growth of a young population with medium-high income, and the slowdown in Chinese luxury consumption, which has led many companies to diversify their geographic presence and shift their focus toward the Indian market. This strategic refocus is further supported by solid structural factors such as India’s significant GDP growth and the projected increase of ultra high-net-worth individuals (those with a net worth of at least $30 million) by around 50% by 2028. Additionally, considering that the U.S. market — alongside China, the second-most relevant for the Altagamma segment — is experiencing a period of deep crisis due to Trump-era policies, it becomes clear why India is attracting the attention of international brands as the world’s fastest-growing major economy. Naturally, several challenges remain. On a cultural level, there is a certain resistance to the aesthetic codes of international brands, particularly in fashion, where taste remains rooted in local traditions. From an infrastructural and regulatory standpoint, entry barriers are still significant: from customs duties to curbs on FDI, and a shortage of retail spaces aligned with the brand image of luxury. Sales remain concentrated in a few luxury malls located in Delhi, Mumbai, and Bengaluru, while demand is far more geographically dispersed. Despite these challenges, the medium- to long-term growth prospects of the Indian luxury market remain positive. The number of luxury malls and retail infrastructures in Tier II and III cities is expected to grow, and regulatory simplifications regarding FDI are desirable to help international brands access the market more easily, manage retail spaces more freely in line with their brand identity, and enhance the shopping experience. The development of online retail has partially mitigated logistical complexities, but for the luxury segment, physical retail is essential. Italian brands are showing growing interest in this market, accompanied by caution that reflects a deep respect for India’s cultural uniqueness. Some brands have had a long-standing presence in the Indian market and are now particularly active, both through mono-brand stores in major cities and via local distribution partners. These include Bvlgari, Fendi, Gucci, Max Mara, Valentino, Versace, B&B Italia, Poltrona Frau, Kartell, and Ferrari. To succeed in India, a personalised approach is essential — both in terms of product and communication — along with an authentic, dialogical strategy capable of engaging a highly discerning clientele, one that values its cultural heritage without compromising the brand’s identity. Lazzaroni is CEO, Fondazione Altagamma (Association of Italian luxury brands). Views are personal. Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.

Why India Matters for the Global Luxuryscape, explains Fondazione Altagamma's Stefania Lazzaroni

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