The ultra-rich population in India has grown by 11% in the last decade, and the country's luxury market is set to surge to $8.5 billion in 2023, up by an impressive $2.5 billion since 2021, making India one of the fastest growing luxury markets in the world.
The surge in luxury consumption among Indians is driven by factors like the emergence of new-money class with logo-mania, e.g. searches for logo featuring Kenzo Paris sweatshirt in India has gone up by 550% in the last 12 months. Pop culture, including luxury brand name drops in Punjabi hip-hop songs, and the use of Indian celebrities as brand ambassadors, are also contributing to this trend. This also reflects the next step towards self-actualization, for the class with new-found wealth.
In the fiscal year ending March 2022, the Indian branch of the luxury giant LVMH Moët Hennessy – Louis Vuitton, known as "LOUIS VUITTON INDIA RETAIL PRIVATE LIMITED," generated approximately INR 500 crore in operating revenue, marking a 6% increase in EBITDA.
LVMH views India as a top-priority market and is actively working to strengthen its presence in the rapidly growing luxury market.
1. Dior celebrated Indian craftsmanship with a fashion show in Mumbai earlier this year.
2. Deepika Padukone is now an ambassador for Louis Vuitton.
3. In addition to Louis Vuitton's current omni-channel presence in online luxury marketplaces and malls, they introduced their own website earlier this year.
4. LVMH's private equity arm has invested in Indian consumer businesses, including FABINDIA LIMITED (erstwhile Fabindia Overseas Pvt. Ltd.) (exited), PVR Cinemas (exited), and recently, SUGAR Cosmetics and Jio Platforms Limited (JPL).
5. LVMH's brands are strategically located in prominent malls like DLF Emporio, UB City, Palladium Mumbai, Jio World Mumbai, and DLF Chanakya, close to areas of affluence. Some of their brands are also present on online luxury marketplaces like Le Mill, The Collective and Ajio Luxe.