Gifting in focus, luxury brands woo buyers with new product launches

Online retail also gaining traction; watches, accessories and apparel most sought after

Luxury brands are wooing customers with new products to ensure no dearth of options for indulgence this festival season. As Diwali draws closer, retailers across India are aiming to grow sales for consumer products. The country’s luxury market, too, is experiencing increased activity as crowds throng malls.

Global brands are increasingly seeing India as a luxury destination. This year, too, many, including the likes of Cartier and Jimmy Choo, have launched India-specific collections for the festival season.

Jimmy Choo, the British luxury fashion house, has unveiled a limited-edition capsule collection for Diwali — a blingy, glittery set comprising eight styles, including the signature Sweetie clutches and Bon Bon bags. Actor Ananya Panday is the face of the brand’s campaign.

Jimmy Choo has also introduced the new Callie Shoulder, a luxury handbag in satin decorated with crystal fringe that retails at Rs 520,000 in India.

Besides, the brand has launched gifting packs comprising a body moisturiser and signature Jimmy Choo fragrances in two sizes, starting at Rs 11,000.

“This is the first time the brand has brought gift packs to India, that too at affordable prices,” says an executive at its store DLF Emporio, New Delhi.

A few metres away at Michael Kors, the ready-to-wear line of the brand featuring sequined jumpsuits and dresses featuring the MK emblem have been seeing strong demand. The brand has on display a range of bags — the Grayson and the Jetset — in shiny, patent leather and blingy clutches that are in sync with the festival styles. These bags start retailing at Rs 22,000 and go up to Rs 38,000.

“Brands are moving away from thematic manifestations of the Diwali festival and are bringing in launches that have some aspect of the brand’s DNA,” adds Bhattacharya.

“Global luxury brands now have a better understanding of consumer patterns in India. They increasingly understand the importance of Diwali and that it is a time for gifting and more spending,” says Srimoyee Bhattacharya, founder of luxury and lifestyle consultancy firm Peepul Advisory.

At DLF Emporio, one of New Delhi’s two luxury malls (the other being The Chanakya), sales executives say business is picking up after a month of slow sales owing to shraddh and Navratri. In Hinduism, shraddh is a period of austerity during which people honour their ancestors and are expected to abstain.

“At our luxury malls, sales are more than 130 per cent of the pre-pandemic levels. Currently, all categories are delivering results, indicating the rising demand for luxury products and experiences in the country. This is because consumers are seeking new experiences and have rising aspirations,” says Pushpa Bector, senior executive director at DLF Retail.

Online luxury retail, too, is gaining traction.

“When it comes to Diwali shopping, in the North region, Delhi and the National Capital Region have been leading the way, with markets like Lucknow also contributing significantly to the platform’s revenue,” says Gopal Asthana, chief executive officer, Tata CLiQ.

The most sought after categories this season are watches, accessories and apparel. In watches, high-end luxury products like Cartier are a very popular purchase.

Brands like Jaeger-LeCoultre and Panerai are also starting to gain traction. Apart from this, the beauty category is also showing strong growth. “These are segments that are also ideal for gifting,” says Asthana.

Tata CLiQ has also seen consumer interest in home décor, and has recently partnered Indian luxury brand Good Earth. “As people continue to invest more in their own spaces, the home sector, which encompasses everything from décor to linen to furniture, is rising. It is of strategic importance and one of the fastest-growing categories,” adds Asthana.

Premium chocolate brand Choko La is also expecting a strong response in the festival season, and has launched new hampers.

“The sentiment this year looks very promising. The ongoing Q3 looks very optimistic and we expect double-digit volume growth over last year. We expect the momentum to continue in Q4,” says Vibhu Mahajan, chief operating officer, Choko La.

A recent Deloitte research pointed out that Indian consumer confidence is increasing, and in turn driving an interest in luxury brands, exotic travel and new vehicles.

“India’s booming economy is encouraging consumers to embrace premium. Discretionary spending is poised to increase, benefitting sectors like retail, automotive, and travel and hospitality,” according to Rajeev Singh, partner and consumer industry leader at Deloitte Asia Pacific.

This festival season, the luxury market is hopeful of cashing in on the preference for premium.

The Empire bags on display at a Michael Kors store, priced in the range of Rs 22,000 to Rs 38,000