“The launch of the store is about a year and a half away. Once launched, it will have hundreds of brands, including some of the existing ones from our portfolio and some new additions,” says an RBL executive who declined to be named.

But why are luxury brands lining up to enter India? “First, the macroeconomic fundamentals are compelling: India is now the world’s fastest-growing major economy, projected to grow at over 7% annually through the end of the decade, which should soon make it the third-largest economy in the world,” says Amed. “This growth is translating into a rapid rise in the number of high-net-worth individuals with the spending power and desire to express themselves through their lifestyle choices. Second, the retail infrastructure is improving with high-end retail spaces like Jio World Plaza and the upcoming Galeries Lafayette in Mumbai will begin to offer the kind of physical presence luxury brands expect. Luxury e-commerce and digital engagement are enabling brands to connect with consumers beyond the major capitals. And finally, there’s a noticeable cultural shift as well.”

According to Amit Pande, business head (The Collective and international brands), ABFRL, there has been a clear increase in demand for premium brands across the country. “There is no doubt that with the rise in income and awareness levels, thanks to the large consumption of social media, the sales numbers are going up,” he says. “Online purchases are pretty strong. In fact, about 25% of the overall sales of The Collective comes through online sales. Over the years, physical presence of The Collective has gone to 21 stores across the country.”

LIVING THE HIGH LIFE

Several sectors are experiencing strong growth driven by evolving consumer preferences. The high-end automobile market — dominated by brands such as Mercedes-Benz, BMW, Audi and Volvo — continues to be a top performer. “To a large extent, the sale of our top-end vehicles mirror the growth of HNIs in India and the average age [of the customer] for even the top-end cars is 38,” says Santosh Iyer, MD & CEO, Mercedes-Benz India.

He says that in the 30 years the company has been in the country, the majority of the sales have come in recent years. “Out of 200,000 cars sold [in these 30 years], the last 100,000 were sold in the past six years, and the last 150,000 were sold in the last 10 years.”

While there is increasing demand for luxury carmakers such as Rolls-Royce, Porsche, Lamborghini, Ferrari and Bentley, there are challenges such as high taxes and infrastructure, says Francesco Scardaoni, APAC Region director, Automobili Lamborghini. “Despite these challenges, in 2024, Lamborghini had our record year of 113 units delivered — making India our 14th largest market globally and the sixth in the Asia-Pacific.”

And customers are not just buying cars; they are customising them. “We also see an increasing demand among Indian customers for customised automotive experiences, with a strong preference for personalised features and customisation options,” says Scardaoni. Agrees Iyer. “More than 70% of our cars are Manufaktur — the customising option from Mercedes-Benz — and customers are happy to spend anywhere between ₹60 lakh and ₹1.5 crore for both interior as well as exterior customisations,” says Iyer.

A Rolls-Royce dealer, who declined to be named, says that his customers go all out with customisations, adding that since India signed the FTA with the U.K. their sales have slowed a bit “as customers are waiting to see how they are going to benefit from it”.

Saks Fifth Avenue

A life less ordinary: How Indians are redefining the luxury lifestyle