 "Gucci, Louis Vuitton sales skyrocket in Tier-II, III cities as demand rises")
Luxury items like Gucci shoes and Louis Vuitton bags are no longer exclusive to India’s major cities. High-end products are increasingly being purchased in smaller towns and regions across the country.
This year, Tata CLiQ Luxury has reported sales of pre-owned Rolex watches in Ajmer and Nagpur, Mulberry handbags in Nadiad and Aligarh, and Bulgari products in Etah and Karimnagar, among other locations, reported The Economic Times.
The news report quoted Gopal Asthana, chief executive of Tata CLiQ saying that e-commerce has allowed the luxury sector to expand its reach and non-metro markets now account for about 55 per cent of our overall revenue.
The TimeVallee portfolio, which includes prestigious brands like Cartier, IWC, Jaeger-LeCoultre, Panerai, and Piaget, also sees around 40 per cent of its sales come from smaller towns. This growing demand highlights the changing aspirations of consumers across India and strengthens our commitment to making premium and luxury brands available nationwide, Asthana said, as quoted by the report.
The report quoted Neeraj Walia, managing director and CEO of Montblanc India, saying that online sales from smaller towns have doubled compared to last year.
Clients in places like Ranchi, Kanpur, Guwahati, and Gwalior are purchasing limited edition items, and the company now serves over 320 cities, up from around 230 a year and a half ago, he said, noting that leather products are particularly popular.
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The report quoted Sandeep Ghosh, group country manager for India and South Asia at Visa, as saying that India’s Tier-II and Tier-III cities are witnessing increased consumer spending. With a young population and a growing middle class, these cities show a higher tendency to spend, Ghosh said.
The company’s study indicates that, in the past five years, the number of credit cardholders in Tier-III towns spending over Rs 2 lakh annually has increased fourfold, compared to a 1.4x increase in Tier-I cities.
Sales of luxury watches in Tier-II and Tier-III cities are also rising due to increased digital access, said Sanjay Mishra, director of FM International Watches & Jewellery Pvt Ltd (Franck Muller).
Consumer spending habits
Markets like Ahmedabad are known for their high purchasing power, while Pune is a key market for luxury watches. Lucknow, Kochi, and Surat are also emerging as strong markets due to consumer spending habits and proximity to Mumbai, Mishra said.
Some customers are spending upwards of Rs 26 lakh per year on luxury goods online, and the brand plans to expand to Ahmedabad in 2025.
At Luxepolis, an online marketplace for pre-owned luxury goods, sales in Tier-II and Tier-III cities have grown to 52 per cent this year, up from 42 per cent a few years ago. We see customers from cities like Surat, Jaipur, Jodhpur, Udaipur, and Kochi, with a rising demand for niche brands such as Givenchy and Chloe, said founder Vijay KG.