Published
Feb 13, 2019
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Fashion and jewellery main contributors to India’s increased luxury spending

Published
Feb 13, 2019

Luxury spending in India experienced a four percent compound annual growth rate from 2013 to 2018 with continued growth expected. The most frequently purchased luxury products in India are in the categories of fashion and jewellery.

Luxury spending in India is continuing to rise with exceptional growth in non-metro locations


Despite recent economic hurdles such as demonetisation and the introduction of the Goods and Services Tax (GST) with higher taxes on luxury items, India’s luxury market has grown by around four percent a year in the past six years, according to a report by ET Bureau. This growth is also expected to continue thanks to India’s growing middle class and long-term economic projections. 

The two largest categories in luxury spending from 2013 to 2018 were fashion from high end boutiques with 42 percent of the total spend and jewellery at 32 percent. Electronics made up 14 percent and shop boutiques made up 13 percent. 

However, the top purchases varied amongst India’s metros, as fashion took the top spot in Mumbai, followed by jewellery, but in Delhi jewellery placed above fashion. In Bengaluru and Chennai, fashion was the top purchase followed by electronics. 

Women made up 33 percent of the luxury market and tourists spent the most on clothing and jewellery with 34 percent of total spending coming from tourists. Tier 1 cities saw luxury purchases increase by 23 percent in the time period and spending in Tier 2 cities increased 30 times that of Tier 1 cities. 

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