Luxury renaissance: All that made 2023 a year of opulence and achievement

The country set new benchmarks in the luxury sector this year, attracting the world's top brands and exporting the finest

When Tikka Shatrujit Singh brought Louis Vuitton (LV) to India 20 years ago, it had been barely a decade since the country had opened its market to the world. While global brands had started registering their presence, the landscape for the luxury sector barely existed.

“The only locations suitable for luxury stores were the premium hotels,” said Singh, whose great-grandfather, the maharaja of Kapurthala in Punjab, was a Francophile. Singh, who was keen on bringing LV, a French brand, to the country, approached Prithviraj Singh ‘Biki’ Oberoi, then chairman of EIH Ltd, the flagship company of the Oberoi Group.

A meeting was organised between Oberoi and LV Chairman Yves Carcelle. “At the meeting, Yves Carcelle said the best location for an LV store would be Biki Oberoi’s own office,” said Singh, laughing. “Oberoi chuckled, but like all great leaders, he had a vision.” And that’s how a major luxury brand, among the first, came to India.

Between 2003, the year of LV’s arrival, and 2023, India’s luxury space has transformed. The opening of the Jio World Plaza, the country’s largest luxury mall, in Mumbai on November 1 this year set a new benchmark for the industry. “I was there for the plaza’s opening,” said Singh. “And I can confidently say that today, India is the place to shop for luxury” – and to experience it. Weeks later, PVR INOX unveiled Maison INOX, a luxurious boutique cinema with a bar and lounge called Gatsby’s, at the plaza.

London, Milan, New York, Paris, Singapore, Hong Kong and the United Arab Emirates were the destinations high net worth Indians (HNIs) once flew to for luxury goods – clothes, watches, bags, shoes, sunglasses… Today, practically every big luxury brand has a standalone store in India – Prada and Dolce & Gabbana are exceptions.

India’s luxury merchants say hosting G20 also helped the sector. “We now have the kind of infrastructure needed to support luxury: top-class airports, good roads and great malls,” Singh said. 

According to “The State of Fashion 2024” report by Business of Fashion and McKinsey & Company, global luxury brands believe India is among the most promising destinations for luxury consumption in the coming year. 

“While the biggest fashion markets are seeing only tepid signs of renewed growth, others may be more compelling. When asked about the countries or regions they believe will be the most promising in the year ahead compared to 2023 in the survey conducted in September, executives cited the Middle East (51 per cent net intent), India (39 per cent net intent) and Asia Pacific (34 per cent net intent),” the report said.

At a luxury symposium by the Indo-French Chamber of Commerce and Industry in New Delhi, Comité Colbert CEO Benedicte Epinay said the desire for luxury products has gone up by 75 per cent. “For 20 years, India has been heralded as a promising market. The economic and socio-cultural indicators finally seem to show that the planets may be aligning. When it comes to luxury, India matters; I am convinced of that,” she said.

Comité Colbert is France's official luxury association, representing more than 95 of the world’s top luxury brands.

Speaking to Business Standard on the sidelines of the symposium, Abheek Singhi, managing director and senior partner, chair of practices at Boston Consulting Group India, said the Indian luxury sector has grown at an average rate of 15 to 18 per cent since Covid. And, it is expected to grow at a compound annual growth rate of 15 per cent over the next five years. 

“The decade of retail for India” is how Pushpa Bector, senior executive director, DLF Retail, described the next 10 years. “At our luxury destinations – Emporio and Chanakya (in New Delhi) – sales of luxury brands, including those from LVMH and Bulgari, have doubled over the past three-four years, and they all want more space,” she said. So, the plan is to expand Emporio to double its size. “Whatever is current and relevant in Paris is current and relevant at Emporio,” Bector said. 

Today, besides HNIs, a young and aspirational population is also a consumer of luxury. Brands are adjusting their pricing in India accordingly, Bector added. The way they engage with the Indian consumer is also changing. 

Even the ones that would traditionally reach out to potential customers one on one, and at times only through an invite, are now seeking greater visibility. Take the example of French luxury brand Dior, which, in a first, showcased its Fall 2023 collection at the Gateway of India in Mumbai. 

India is the destination everybody is eyeing. This year, Italian menswear brand Brioni and Christian Louboutin (in partnership with Aditya Birla Fashion and Retail Ltd) were among those that announced their entry into the country. Next year, French departmental store Galeries Lafayette will begin operations in Mumbai, before opening in Delhi in 2025.

A two-way street

The year wasn’t just about foreign brands coming to the country. It was also about India reaffirming its identity as a creator and exporter of luxury. 

“In 2022, India imported Swiss luxury watches worth a record 400 million Swiss francs,” said Nirupesh Joshi, co-founder, Bangalore Watch Company. “The country,” he added, “is expected to be one of the top luxury watch importers in the next few years.” It is also increasingly becoming a supplier of watches. Bangalore Watch Company, a new-age premium watch brand, for instance, supplies to over 30 countries. 

“Korea and China are pure consumers in this segment, but India is also about understanding luxury – from carpets to jewellery,” an industry stakeholder said. “It is a rare, lived culture, which is appealing to the global market.”

Closing the year on a high, couturier Manish Malhotra forayed into the international market with a flagship store at the Dubai Mall. This was almost a year after designer Sabyasachi Mukherjee opened his first international flagship store in West Village, New York. Two other Indian names – Rahul Mishra and Gaurav Gupta – have, year after year, presented their collections at the Paris Haute Couture Week.

There was a time Singh of LV would visit luxury stores abroad, observe the salespersons there and then pass on service tips to his staff in India. “Today, look at how well-trained the sales executives in our luxury stores are,” he said. “They treat you like kings and queens. Luxury is all about service, and the West can no longer match India’s standards.”

Living life king size

The demand for luxurious homes also soared this year. In Gurugram, DLF sold a 10,000-plus sq ft apartment for a whopping 100 crore.

Real estate consultancy Anarock said ultra-luxury homes priced upwards of Rs 40 crore recorded a 247 per cent year-on-year sales value surge in 2023. Of these, 58 were sold in seven cities for a total of about Rs 4,063 crore. Compare that to the whole of 2022, when 13 ultra-luxury homes were sold for a total sales value of about Rs 1,170 crore.

Also, at least 12 deals in 2023 were worth Rs 100 crore each – 10 in Mumbai and two in the Delhi-National Capital Region.

In terms of buyer profiles, around 79 per cent of the deals were closed by business owners and 16 per cent by C-suite professionals, Anarock said.

The art palette was also as vibrant, and it looks set to better all past records, said Tushar Sethi, CEO, AstaGuru Auction House. Indian masters were in big demand. An Amrita Sher-Gil sold for a record-breaking Rs 61.80 crore and several other artists set personal records. Auction house Christie’s, too, broke multiple records for Indian artists.

For the world of luxury, 2023 was truly India’s moment.

1. The Indian luxury sector has grown at an average rate of 15 to 18 per cent since Covid. It is further expected to grow at a CAGR of 15 per cent over the next five years

2. A slew of global luxury brands have been streaming into the country. This year, Italian menswear brand Brioni and Christian Louboutin (in partnership with ABFRL) were among those that announced their entry into the country. French departmental store Galeries Lafayette will begin operations in Mumbai in 2024, before opening in Delhi in 2025.

3. Luxury homes, too, have seen an uptick in demand. Real estate consultancy Anarock said ultra-luxury homes priced upwards of Rs 40 crore recorded a 247 per cent year-on-year sales value surge this year