Corporate India's Luxury Bets

Corporate biggies such as Reliance and Aditya Birla Group go aggressive in luxury retail as high-earning Indians live it up

-  Asmita Dey

AASHNA SHROFF is an avid shopper of luxury goods. Luxury brands are a big part of her basket of fashion accessories and beauty and fragrance products. "Some of my favourites are Dior, Louis Vuitton, Gucci, Hermes and Valentino," says Mumbai-based Shroff, who works as a digital content creator. Over time, she has expanded her luxury spending to clothing as well. "Most luxury houses have unparalleled history. While I love finding new premium brands, buying from a luxury brand is a different experience. I consider my collection as an investment that will last me a lifetime," she says.

Like her, there are scores of young Indians with high incomes and evolved tastes who are keen to buy luxury products. No wonder luxury retail is emerging as the new battlefield for conglomerates such as Reliance Industries, Aditya Birla Group and Tata Group. Be it Reliance getting French luxury house Balenciaga to India or Aditya Birla Group's deal with French department store chain Galeries Lafayette, there is excitement among luxury brands and retailers. Purchasing power of people is expanding, says Angshuman Bhattacharya, partner and national leader, consumer products & retail, EY India. Earlier, the trend was limited to the very rich, usually entrepreneurs. Now, with corporate events and parties becoming the norm, even the salaried are buying luxury products.

A November 2022 study by Bain & Company-Altagamma found that India's luxury market will be propelled by "increasing interest and evolving attitudes and behaviour" among customers. "Although there will never be another China in growth contribution to the (luxury goods) industry, India and emerging Southeast Asian and African countries have a significant potential. India stands out for its potential among the rising stars," says the study.

Clash Of The Titans