higher disposable incomes. Luxury brands are now set to cash in on that. High import duties on luxury items make a large number of items more expensive in India compared to other countries.“The increase in disposable income, the introduction of new brands in the country, increased awareness and exposure, increased reach and access to luxury brands as a result of e-commerce, HNI consumers purchasing luxury products in the country due to limited travel, and the youth exploring and purchasing luxury products in new categories have all contributed to the expansion of this industry,” shared Gitanjali Saxena, Business Head, Tata CLiQ Luxury. “Luxury retail is here to grow exponentially in India. Unlike other world markets, the Indian economy and Indian luxury retail is uniquely positioned to grow over the next 3 decades. We would witness many luxury brands entering India, existing brands expanding aggressively by 2027- 30,” Vijay told Luxebook. And with Pernia’s Pop Up Shop this insight in mind, it’s no surprise that high-end brands are aggressively looking at India as a potential market for their growth in the post pandemic phase. With the recent foray of Balenciaga into India, it’s only an upward trend. Other brands like Alexander McQueen, Philipp, La Mer and Girard-Perregaux are also looking to expand their footprint into the country. However, some luxury retail segments were hit differently and one such was the wedding luxury retail market in India. Abhishek Agarwal, Founder, Purple Style Labs (that now owns Pernia’s Pop Up Shop) said the main challenge for them was limited to weddings and occasions coming to a halt or moving to a much smaller setup, but even during the pandemic, they kept expanding offline at better commercials for the long term, which today is helping them foster growth postpandemic. Further, another interesting thing to note is that while online might be paving the way for some brands, wedding luxury shopping still continues to be an activity that people enjoy offline. Once stores opened up again, Agarwal said, “Our offline business is six times prepandemic levels whereas online business is only four times that amount. We have moved to large format store (Pernia’s Pop Up Shop) models post-pandemic. Prior to the pandemic average store size was 2.5k sq ft but postpandemic we have opened stores between 5-10k sq ft and our latest upcoming store in Delhi is spread across a 50k sq ft location.” But overtime a key change that will occur for luxury retail is in store talent and experience and hence there is a need to eliminate the gap between digital and physical. Associates must deliver a seamless experience with a high level of service using both physical and digital tools. The new age luxury shoppers Today, there is a shift in the demographic of those who are luxury buyers. With millennials and Gen Z stepping in, according to a report by Sia Partners they already account for 50% of luxury sales. This number is to grow past 70% by 2025. The new-age shoppers though have new criteria while spending and can rightfully be bracketed as value-based shoppers. They crave authenticity, and innovation and are willing to invest in luxury goods that deliver long-term quality. What is also interesting is that in the post-pandemic world, most shoppers are hybrid shoppers who engage with brands through multiple channels simultaneously. To meet these dual desires, luxury retailers must embrace a unified experience across channels, delivering on expectations both digitally and physically. Physical stores are critical to the luxury experience, whereas e-commerce in luxury is more about storytelling rather than selling. While the pandemic has reinforced the growth of luxury e-commerce, the importance of physical stores within luxury remains undisputed. Handbags sales have contributed immensely to luxury retail bouncing back 46|L U X E B O O K|O C T O B E R 2 0 2 2 O C T O B E R 2 0 2 2 |L U X E B O O K|47
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