The future of the global luxury market is being shaped by the rise of India. The rapid growth of the affluent population is fuelling a luxury boom in the country, with the sector, currently worth around $17bn (£12.6), projected to more than triple to $85bn by 2030, according to Fortune data.

Fashion houses such as Gucci, Louis Vuitton and Hermès have been boosting their presence in the region, with 27 new global brands arriving in the country last year – almost double the number from the previous year. French luxury department store Galleries Lafayette, which recently opened its first flagship outlet in India this month, has become the latest to tap into this boom.

This burgeoning market has its challenges, however. India is referred to as the “land of many Indias” because of its linguistic, cultural and social diversity, and this complexity has been seen as a major hurdle for global brands. But technology, personalisation and storytelling are helping brands rise to engage this rising luxury class that is confident, globally connected yet firmly rooted in its own cultural identity.

Connecting with the ‘Maharaja mindset’

Rising workforce participation is creating a more diverse and empowered consumer base. Women are now taking up roles where they have historically faced barriers to entry. This is, in part, helped by women-focused initiatives, such as L’Oreal’s partnership with Mahindra Logistics to launch India's first all-women-operated warehouse. This is helping to set new standards for representation and inclusivity - values that increasingly shape how brands engage with consumers.

With greater disposable income, increased exposure to global trends through social media and growing awareness of individualism and personal expression, women are emerging as a key demographic in India’s fast-growing luxury sector, accounting for almost 54% of the market in 2024, according to a report from market research firm IMARC Group.

The luxury sector is also being redefined by a younger generation attracted to new and emerging retailers, with research from BCG showing 76% of India’s 13-28 year olds say they are open to exploring new brands. Luxury consumers also value accountability and sustainability, and want brands to align with their values. This sentiment informs what’s been coined “the Maharaja mindset” by commentators including The Business of Fashion’s Imran Amed. The term, which refers to the outlook of the modern luxury consumer in India, is drawn from Indian luxury’s lineage dating back to the Maharajas, rulers renowned for their connoisseurship and opulence. As the concept of luxury has evolved, a new demographic of modern consumers are emerging, embracing global influences while proudly reclaiming and celebrating this cultural heritage. They are cosmopolitan and progressive, yet deeply anchored in cultural heritage.

More brands are balancing modernity and history in their designs and marketing, such as Bulgari, which launched its Bulgari Mangalsutra sautoir necklace as a modern take on a traditional symbol of marriage in India, and Dior which has a longtime collaboration with the Mumbai-based Chanakya School of Craft. We’re also seeing rising support for spaces dedicated to preserving traditional Indian techniques, like the gallery Aequo which aims to connect global creatives with the country's craft heritage.

Getting ahead of India’s AI revolution

Today, consumers are shopping fluidly across platforms, a shift that’s been accelerated by the government’s ‘Digital India’ initiative to strengthen infrastructure and connect nationwide. Meanwhile, big tech, like Google and Microsoft, have been boosting AI investment in the country, with OpenAI chief executive Sam Altman saying India is the company’s second-largest market.

The country also has the highest number of users across platforms such as Facebook (350 million-plus), Instagram (413.8 million) and video app YouTube (over 467 million), according to data from Statista. Almost 90% of Indian shoppers say generative AI has already improved their online experiences and they’re eager for the next wave of innovation, a survey from Adobe shows. This aspirational mindset is creating a new digitally-confident generation that expects brands to offer a more personalised experience and make every touchpoint feel intentional, memorable and uniquely their own.

Brands leading the way here include Italian sneaker brand Golden Goose, which is among a new generation of brands launching stores in India. Golden Goose celebrated the launch with an event where ‘sneakerheads’ and influencers could customize their trainers with various embellishments and finishes. Meanwhile, Range Rover is allowing customers to co-create and personalize their dream car with the help of a tech tool.

Cultural nuance and personalisation builds credibility and connection

As brands reach across India’s many markets, cultural nuance becomes non-negotiable. Product customisation, vernacular communication and local collaborations help brands build credibility in communities where tastes, traditions and values vary dramatically and technology is only reinforcing this feeling. AI is enabling sophisticated and scalable tech-driven recommendations through virtual try-ons and real-time data-led experiences.

At Dalziel & Pow, we designed Coyu’s flagship store in Gurugram to offer a more personalised experience for shoppers, with a combination of digital projection screens, oversized logos and unexpected signage telling the stories of featured brands. Six spacious trial rooms, a dedicated lounge area, in-house tailoring and a personal shopping lounge for private consultation creates an exclusive yet welcoming atmosphere with a personal touch.

The layout of Coyu was curated as an ever-changing premium retail space that can house over 50 handpicked fashion labels, featuring a regular rotation of both global and local styles and trends. This responsive store layout has the capability to be ‘refreshed’ to keep the space flexible, vibrant and engaging, with 20% of the store reserved for emerging brands.

Bricks-and-mortar retail and the shift to smaller cities

Unlike many Western markets, brick-and-mortar retail continues to hold deep cultural relevance in India. The regions are now expected to drive India’s retail growth with 60% of sellers hailing from Tier-2 or smaller cities. Stores are a critical marker of credibility and, as expectations rise, retailers are creating cultural and community-led environments. Storytelling, sensory engagement, moments of theatre and opportunities for co-creation are shifting retail from transactional to experiential.

This emerging shift is evident in spaces like Aquazzura’s new store in Delhi, for which the luxury Italian footwear brand collaborated with local interior designers to create an environment focused on celebrating Indian culture. Likewise, The Palace Atelier store in Jaipur aims to blend heritage with global design. The brands that place human connection at the heart of luxury will thrive, putting storytelling on show and creating a space to belong.

Designing retail experiences that feel truly local

The enduring popularity of unorganised and hyper-local retail, a phenomenon that’s unique to India, could be seen as an obstacle to brands. But, instead of seeing this as a barrier, the luxury sector should take inspiration and design products and experiences that feel truly local, while grounding them in the reliability and dependability consumers crave in an increasingly uncertain world. Hyper-local strategies are overcoming this challenge, like Chorus’ new flagship store in Mumbai’s art district which takes its inspiration from the character of its local neighbourhood and environment. This taps into what Indian consumers consistently value: accessibility and the comfort of the familiar.

As global brands rush into India’s fast-growing luxury arena with fresh ideas, bold retail concepts and immersive experiences, it’s crucial to remember that the market is still in its infancy. Traditional luxury codes like logos, iconic signatures and visible brand cues still matter.

The real challenge ahead is transforming this emerging appetite for luxury into a deeper, home-grown mindset, shaped by storytelling, emotional resonance and experiences that linger in the memory long after purchase. For brands, winning in India will be about crafting moments that rival the prestige of buying overseas, and proving that luxury isn’t defined by geography, but by how powerfully it moves the consumer.

Written by Insights Researcher Elle Ashby.