Ms. Ananya Tiwari, Post-Graduate Academic Scholar in Fashion Management, National Institute of Fashion Technology, Ministry of Textiles, Daman campus
Dr Vidhu Sekhar P, Assistant Professor, Department of Fashion Management Studies, National Institute of Fashion Technology, Ministry of Textiles, Daman campus
Abstract
The masstige or affordable luxury segment is gaining traction in India, driven by rising disposable incomes, changing consumer preferences, and digital connectivity. This trend is characterized by luxury goods and services that are accessible to a wider audience without compromising on quality or prestige. Indian consumers are seeking premium products that reflect their lifestyle, status, and personal taste, with a growing demand for unique, limited, and sought-after collections. The masstige market in India is expected to continue growing, with a projected growth rate of 10% over the next five years, exceeding $200 billion by 2030. Brands like Good Earth, Nicobar, and Nappa Dori are popular choices among Indian consumers seeking premium and sustainable products. As consumers become more discerning and demanding, luxury brands will need to adapt to changing preferences and priorities, including sustainability and exclusivity.
Keywords
Masstige, Indian luxury market, digital consumers, sustainability, craftsmanship, personalization, aspirational demographic, global luxury slowdown, artisanal ecosystem, Made in India
Introduction
The global luxury goods market, valued at $286.10 billion in 2024 and expected to reach $405.80 billion by 2033, growing at a CAGR of 3.76%, is experiencing a slowdown in certain segments. However, India’s luxury market is poised for growth, driven by a young and aspirational demographic, rising affluence, and increasing demand for premium products.
Despite the global slowdown, India’s luxury market is expected to grow at an annual rate of 10% over the next five years, exceeding $200 billion by 2030. This growth is driven by the rising affluence. India’s growing middle class, with increasing disposable income, is driving demand for luxury goods and experiences. The Young and Aspirational Demographic with over 65% of its population under 35, India boasts a young and dynamic consumer base, prioritizing experiences, personalization, and exclusivity.
Evolving Luxury: India’s Cultural Edge and Masstige Opportunity
Global Luxury Market Trends is mainly dominated by Asia Pacific region holding a revenue share of 39.9% in 2024, driven by increasing disposable incomes and a growing middle class. The Apparel accounting for 25.9% of global revenue in 2024, driven by product innovation, exclusivity, and evolving fashion trends.
The most valuable luxury brands in 2024 include Porsche, valued at $43.117 billion, followed closely by Louis Vuitton at $32.235 billion, and Chanel at $26.068 billion. Hermès and Gucci also rank high, with valuations of $16.676 billion and $14.864 billion, respectively. These iconic brands have established themselves as leaders in the luxury market, known for their exceptional quality, craftsmanship, and timeless appeal.
While the Indian luxury market holds immense potential, it also poses challenges. Luxury brands need to balance pricing strategies to cater to India’s price-conscious consumers. The strict regulations require local partnerships, which can deter foreign luxury brands from entering the Indian market. By understanding the unique challenges and opportunities, luxury brands can capitalize on India’s growth story and establish a strong foothold in this dynamic market.
India’s luxury market is a mindset that needs to be understood rather than a market that needs to be “entered.” The challenge for international luxury brands is not only to navigate strict FDI regulations and skyrocketing import taxes, but also to rethink what luxury means in India and reevaluate their initial expectations of what it should look like. The demand is genuine, but it is encased in paradox: a buyer who worships tradition but consumes hypermodern, who purchases luxury but looks for purpose, and who drives a Mercedes but haggles over MRP.
Where and how luxury is consumed in India is where the real change is occurring. Delhi and Mumbai’s influence as centres of luxury is eroding. The next generation of luxury customers isn’t just exploring Emporio’s marble floors; they’re also perusing Instagram in places like Indore, Coimbatore, and Guwahati, yearning for experiences that align with their values and goals. The Western luxury playbook doesn’t work here. Retail reimagining is required, not just expansion, with flagship stores serving as both physical locations and digital ecosystems that are rich in regional aesthetics, local language, and cultural codes.
Although regulatory constraints, high taxes, and disorganized infrastructure may appear to be obstacles, they can also be reframed as an appeal to reorganize the luxury value chain, beginning with manufacturing in India. International brands have a strong chance to base their production within India’s centuries-old artisanal ecosystems rather than paying a premium to import finished goods. and pricing for belonging, as well as affordability. Costs can be cut by sourcing and producing in India, but more significantly, it provides authenticity, which is something that customers around the world are beginning to value more.
India offers unrivalled material culture and skilled human capital, from the leather craftsmen of Dharavi to the brocade weavers of Varanasi, from the intricate hand embroidery of Lucknow to the metal artisans of Moradabad, often at a fraction of the cost, but with unmatched finesse. Imagine the possibilities if global brands considered India as a co-creative partner as well as a sourcing destination: a Dior lehenga woven in Banaras, a Gucci bag featuring illustrations by Pattachitra, or a Hermès scarf block-printed in Bagru, each piece carrying not only aesthetic but also emotional and geographical depth.
However, authenticity, sustainability, and innovation are more important than cost-effectiveness. “Made in India” can be a mark of soul and storytelling in a time when aware consumers want to know where, how, and by whom their products are made. In addition to improving their ethical reputation, brands that emphasize these origins use cultural intelligence to capitalize on the rising demand for luxury around the world. Additionally, this creates a huge masstige opportunity: luxury brands can reach India’s aspirational yet budget-conscious consumer base by co-creating mid-tier, culturally rich, and design-forward collections produced in India. This market is looking for identity, craftsmanship, and meaning rather than logos. Brands can grow without compromising their values by investing in Indian craftsmanship and providing affordable luxury lines with strong local appeal.
In the end, the Indian luxury market requires brands to become deeply rooted in the Indian culture rather than just localizing. The key to success will be creating a luxury that feels personal, welcoming, and distinctly Indian rather than trying to emulate Parisian extravagance. Adaptability is not only strategic, but also important in this dynamic environment.
