A recent summit in India, the Business Standard Manthan 2024, has generated a buzz in the global fashion industry. Experts predict that India is on the cusp of becoming a major player in the luxury market, potentially even spawning the "next Chanel."

This optimistic outlook stems from several factors. Firstly, India boasts a rich heritage of craftsmanship and artistry, which has always been a cornerstone of luxury goods. India is currently one of the fastest-growing luxury markets globally, projected to reach a staggering $200 billion by 2030 according to Bain & Company. Alexis de Ducla, director of Mathieu Lustrerie, a renowned chandelier maker, highlights this point, adding that what was previously lacking was investment and vision. However, according to Ducla, these elements have been steadily developing in recent years.

Confidence and investment fueling indian luxury brands

The rise of Indian luxury is also attributed to a growing sense of self-assurance among Indian consumers. Ducla observes a shift in customer preferences, where brand origin matters less than quality and personal taste. This trend aligns with a surge in investment in Indian luxury brands by corporate houses. Major conglomerates like Reliance Retail and Aditya Birla Fashion and Retail have acquired stakes in renowned Indian designers, providing them with the financial backing needed for global expansion.

India's Aspiration and Skilled Workforce: A perfect recipe for luxury

Abheek Singhi, from Boston Consulting Group, emphasizes the current aspirational phase of the Indian economy, which is expected to continue for decades. This, coupled with India's abundant skilled labor force, creates a perfect environment for the growth of domestic luxury brands. Singhi highlights the potential of craftsmanship to become a key competitive advantage for India in the global luxury market.

Collaboration and Showcasing Indian Craftsmanship: The pathway to global success

Experts believe that for Indian luxury brands to achieve true global recognition, collaboration with established names is crucial. Ducla suggests that international brands should view their entry into the Indian market as an opportunity for collaboration, showcasing the talents of Indian artisans within their collections. This sentiment is echoed by the recent move by French luxury house Dior, which held its first-ever Indian show, featuring the works of Indian craftspeople.

Making Luxury Accessible: The way to long-term growth

While Indian luxury is undeniably on the rise, experts caution against neglecting accessibility. Nikhil Sethi, from KPMG India, emphasizes the need for luxury products to integrate seamlessly into the daily lives of Indian consumers. This might involve strategic pricing that doesn't necessarily mirror global benchmarks.

India's hospitality sector, already renowned for its luxurious offerings, serves as a model for the future of Indian luxury. Kapil Chopra, founder of Postcard Hotels, points out that Indian hospitality has consistently delivered exceptional experiences, demonstrating the country's longstanding potential in the luxury space.

With a rich heritage, growing consumer confidence, and strategic investments, India is poised to become a major force in the global luxury landscape. Collaboration, accessibility, and a focus on showcasing Indian craftsmanship are seen as key factors that will propel Indian luxury brands onto the world stage.