Luxury goods take festive splash as brands present a bouquet of choices

The shopping season is well and truly upon us. And luxury shopping — a segment that has been an unapologetic draw even in the face of Covid-19 — is seeing a surge in India as brands present a bouquet of choices with Dhanteras and Diwali round the corner.

At the upscale DLF Emporio, one of the two luxury malls (the other being The Chanakya) in New Delhi, the festive spirit is high and business is brisk as ever.

“It finally feels like we are back in normal times. And that is exactly what we’re celebrating this Diwali: good health and hope,” said Mansi Tuteja, as she browsed a new Jimmy Choo collection to pick gifts for her family.

Tapping into the festive demand, global luxury brands like Jimmy Choo and Michael Kors have launched Diwali capsules exclusively in India.

The limited-edition MK Diwali capsule consists of sparkly bags — pochettes, totes and shoulder bags — starting at Rs 19,000 and going up to Rs 38,000. The Jimmy Choo collection includes blingy editions of their classics such as Daisy and Sweetie clutches and the Bon Bon bag, and costs upwards of Rs 50,000.

Gucci, too, has a new Diwali collection of bags and shoes that it customises for patrons.

“Sales have been brilliant this year. While the pandemic didn’t really dampen sales, it did take away the vibrancy of the festive season. This time, the joie de vivre is back and our new collections are adding the right amount of colour and sparkle to the season,” said a sales executive at the Jimmy Choo store.

New trends

Luxury goods are poised for a steady growth in India. Euromonitor International pegged the Indian luxury goods market at $6 billion in 2021, and predicted it would go up to $8.5 billion this year.

“India is a growing market and the luxury sector has seen a lot of activity in the past few years — especially in the pandemic, which essentially changed people’s value systems. There is a clear rise in discretionary spending by the younger generation, and a lot of that is directed towards the luxury sector,” said Radhika Butala, founder, The Better Collective, a brand consultancy company.

According to the Atlas of Affluence (AOA), a white paper created by The Voice of Fashion — a division of Reliance Brands — in May 2022, spending on luxury goods among affluent Indians as well as new aspirants was earlier associated with international travel.

Most Indians would have reservations about spending big money at home on goods they believed were taxed too high. But with travel blocked or restrained post-Covid, luxury purchases brought optimism and a sense of self-enablement right to the doorstep, it said.

“While the country’s hospitality industry dependent on tourism was initially the most affected, discretionary purchases — jewellery, home décor, beauty and spa brands, fragrances and spirits, technology and food sectors — picked up,” it added.

Indian brands, too, have capitalised on the sentiment ahead of the festive season.

Luxury home décor brand Good Earth has launched lustrous silk and jewel-toned cushion covers, serve ware with intricate lattice work and etchings and glittering lanterns, with the prices starting at Rs 2,100.

Skincare brand Forest Essentials has launched the Enchanted Forest collection — artisanal gift boxes with body and skin care products — starting at Rs 4,475 and going up to Rs 6,750.

For sports aficionados, NBA India has launched a range of jerseys, jackets, and hoodies.

Misa Candles, a minimalist label from Mumbai, has similarly launched “The Eternal Collection” of candles with fragrant notes of citrus, verbena, patchouli, jasmine and oud, priced above Rs 2,000.

With brands pulling out all the stops, the Indian consumer is spoilt for choice. Buying luxury products has also been aided by the rise of online shopping in recent years. Aspiration and rising purchasing power apart, the proliferation of online shopping platforms has led to an uptick in demand in tier-II and tier-III cities. For instance, the AOA pointed out among the “super spenders” on e-commerce site Ajio Luxe’s profiles of top 100 customers are individuals from cities such as Hospet, Gorakhpur, Dadri, Mohali, Panipat, Kohima, Ludhiana and Lucknow. Their average annual spending on the online platform was Rs 9 lakh.

Brands looking to expand their footprint in the country are welcoming the trend.

“While demand in metros is high in volume, it is finite. The pandemic has shone the light on demand for niche products from smaller towns like Ajmer, Indore and Chandigarh,” said Butala.

In a conversation with Business Standard earlier this year, Vivek Sahni, co-founder of Kama Ayurveda, had said, “We are looking at going to smaller towns and opening more stores there, and hopefully in a year or so we’ll start exploring markets outside India.”

Raising a toast

Hotels, too, are stepping up luxe offerings.

Raffles Udaipur has launched a royal escape package, with a focus on emotional and mental well-being of patrons. It includes a couple’s therapy session with yoga.

“The experience of luxury has moved beyond tangible items. It now includes bespoke holidays, curated packages and personalised experiences,” said Butala.

At Taj Mahal, New Delhi, the recently launched House of Ming has witnessed a full house almost throughout in its reinvented avatar since May. “Our Navratri culinary offers at Machan and Varq also saw a significant upward trend this year and the guest footfall continues to be high. The festive hampers curated by The Chambers and Emperor Lounge are much sought after with artisanal gourmet delights, festive edition specials, experiential stays, organic gifting options and hampers for children too,” said chef Arun Sundaraj, director of culinary operations at the hotel.

At The Lodhi, New Delhi, the festive hamper comes packed in eco-friendly kauna grass baskets that are hand-woven by Manipuri women artisans. The assortment of offerings from The Lodhi Bakery includes homemade pasta, chocolates, tea cakes, condiments like acacia honey, house-made fruit compote with classic gifting elements such as mithai boxes crafted by the hotel’s masterchefs.