According to Euromonitor International, India's fancy stuff market is on fire! They predict it's going to be one of the fastest-growing markets globally, hitting a whopping $8.5 billion in 2023. That's $2.5 billion more than what it was in 2021!

And guess what? The Bain & Co. report says that by the time we hit 2030, India's fancy stuff market might explode to a mind-boggling $200 billion. 

India's Economic Roller Coaster

Hold onto your hats! For the next ten years, India is racing to be the fastest-growing economy. Why? Well, they've got super strong demand for things, cool technology (both the real and virtual kind), and they're ready to compete on the world stage.

While other big-shot countries are having some money troubles, India is like, "Not me!" They're set to grow a whole lot this year and become the fifth-biggest economy on the planet. And get this, the average income per person in India is supposed to jump up by a whopping 70% by 2030. That's a whole lot more pocket money for everyone!

Mumbai's Wealth Status

In 2023, Mumbai, India's wealthiest city, boasts 59,400 high-net-worth individuals (HNWIs), ranking as the 21st richest city globally. To put it in perspective, Dubai is just a bit ahead with 68,400 HNWIs. Delhi follows closely behind at 36th place, hosting 30,200 HNWIs. However, experts suggest that international brands should keep a keen eye on the next trio of Indian cities: Bengaluru (12,600 HNWIs), Kolkata (12,100), and Hyderabad (11,100).

India's Millionaires on the Rise

The number of super-rich people in India is expected to go up by 105% by 2026, according to a report by Credit Suisse. Another report by Bain & Company predicts that India's fancy market will grow to 3.5 times its current size, hitting a whopping US$200 billion by 2030. This surge is fueled by the increasing number of ultra-high-net-worth individuals (those with more than USD 30 million), a booming entrepreneurial spirit, a strong middle class, the widespread use of online shopping, and the demand from smaller cities.

In the last ten years, the number of ultra-rich individuals in India has skyrocketed by 11 times, securing India the third spot globally in the billionaire count, right after the US and China. This data comes from the Wealth Report 2022 by Knight Frank.

Luxury Fashion Battle: Delhi vs. Mumbai

For many years, Delhi and Mumbai have been in a friendly competition for the title of India's luxury fashion hub. Big names like Louis Vuitton, Dior, Chanel, and Hermès initially set up shop in Delhi before opening their second stores in Mumbai. On the flip side, Gucci, Jimmy Choo, and Bottega Veneta gave Mumbai priority. Now, with India becoming the most populated country globally and boasting the fifth-largest economy (surpassing the UK), luxury brands are on the lookout for the next big city hotspots to connect with local luxury enthusiasts and expand their reach.

Dior Showcases Latest Fashion Collection

Christian Dior Couture revealed its latest fashion collection for Fall 2023 in Mumbai on March 30. It's a big deal because Dior is the first high-end fashion brand to do this in India. Luxury brands like Dior are looking for new markets to make even more money.

The fashion show featured all sorts of clothes, from skirts inspired by traditional saris to short jackets called boleros. There were also brightly colored outfits made of silk, including a special Indian pink. The show took place with the famous Gateway of India in the background. 

The company that owns Dior, called LVMH, saw its shares go up by 1% to 838.7 euros (which is about $913). This happened on Friday, and the share price reached a new record during the day. Dior is part of LVMH, which is a massive French luxury company owned by billionaire Bernard Arnault. By adding India to its list of places to showcase new clothes, Dior is showing that it's interested in the growing wealth of the people in India.

Luxe Experts' Advice

Luxury brand experts suggest that it's a good idea for fancy brands to expand their reach in India. However, they also think that when it comes to fashion, Delhi and Mumbai are still the top dogs. These two cities are India's biggest markets for luxury stuff. If a brand wants to be a hit, it should make sure it's present in both Delhi and Mumbai. When opening the first store, it's smart to pick the right spot and see if it's close to other cool places in either city.

The Luxury Hotspots

Both cities have two malls that are just perfect for fancy brands. This setup makes them super appealing to international labels. Delhi has DLF’s Emporio and Chanakya Malls, while Mumbai boasts Palladium Mall and Jio World Plaza. In Mumbai, the southern part of the city is like a treasure chest for cool shops. That's where Hermès and Christian Louboutin set up their stores. The French store Galeries Lafayette also decided to join the party and open a massive 90,000-square-foot shop that will have 200 different brands. Cool, right?

Luxury Brands Making Waves in India

Valentino, Balenciaga, and Galeries Lafayette are some fancy brands that recently teamed up with Indian retailers. Valentino and Balenciaga joined forces with Reliance Brands Ltd. (RBL), a part of Mukesh Ambani's Reliance Industries Ltd., making RBL the top dog in India's luxury fashion scene. RBL already hosts around 35 popular names, including Tiffany & Co., Salvatore Ferragamo, Jimmy Choo, and more.

Aditya Birla Fashion and Retail Limited (ABFRL) shook hands with the Parisian brand, Galeries Lafayette, planning a massive 90,000 square feet flagship store in south Mumbai by 2024. A second store in Delhi, spanning 65,000 square feet, is set to open in one of India's largest luxury malls, DLF Emporio, by 2025. ABFRL is also cooking up a special online shop just for Galeries Lafayette in India.

India's luxury market is skyrocketing, expected to grow 3.5 times by 2030, according to Bain & Company. It's a place where big brands want to be!