LUXE REDUX

2022 has been a phenomenal year for India’s luxury industry, thanks to the wealthy that went on a spending spree. The real story, however, is the spectacular rise of bridge brands and homegrown luxury labels

- NAMRATA ZAKARIA

If one truly needs to assess the wealth of a country, a great idea would be to visit a mall. Department stores are great indicators of a nation’s fiscal health. Not only does one have an overview of the premium stores invested in the country, one could also assess how many mall visitors are actually carrying shopping bags, and of which brands.

An understanding of the luxury business is important for any economy. According to Statista, a leading provider of global market and consumer data, the global luxury goods market was worth around €1.14 trillion in 2021. That is a sizeable business. The global luxury goods industry includes cars, private jets, alcohol, fashion, fragrances, watches, jewellery, cosmetics, luggage and handbags. All of these have been on a steady uptick for more than a decade. Luxury goods makers focus excessively on brand, marketing, aesthetics of the product, stores and communication so that the products become status symbols and, thus, coveted.

The economic stability of a country clearly has a bearing on the well-being of the luxury market. The US is the world’s leading luxury consumer and China is close at its heels. China is expected to become the world’s largest luxury market in 2025.