Luxury

Gucci in Gwalior, Rolex in Nagpur: Luxury finds its way to India’s smaller cities


Gucci shoes and Louis Vuitton bags aren’t just selling in India’s big cities. Such high-end consumption patterns are emerging in other towns and locations in the country.

Some of the notable purchases this year on Tata CLiQ Luxury include pre-owned Rolex watches sold in Ajmer and Nagpur, handbags from Mulberry sold in Nadiad and Aligarh, and products from Bulgari sold in Etah and Karimnagar, among other locations.

Ecommerce has enabled the luxury industry to increase its reach and become more accessible,” said Gopal Asthana, CEO of Tata CLiQ. “On Tata CLiQ Luxury, approximately 55 per cent of the platform’s overall revenue comes from the non-metro markets.”

Its TimeVallee portfolio, featuring brands such as Cartier, IWC, Jaeger-LeCoultre, Panerai and Piaget, also sees approximately 40 per cent of its sales from non-metro markets. “The growing demand not only reflects the evolving aspirations of consumers across India but also reinforces our dedication to making premium and luxury brands accessible nationwide,” Asthana said.

‘Greater Propensity to Spend’ | page 13
Online business from smaller towns is twice as much as last year, said Neeraj Walia, managing director and CEO of Montblanc India.

“We see clients picking up limited editions and special products from Ranchi, Kanpur, Guwahati and Gwalior. We are servicing over 320 cities when it comes to online sales. About a year and a half ago, it would have been around 230,” Walia said, adding, “Leather categories are doing extremely well.”

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Travel retail on the rise

Travel retail has also picked up, with flight connectivity having become more extensive.

“We have boutiques at Bengaluru and Delhi airports and we see clients from non-metros picking up products while they are transiting or moving in and out of the airports,” Walia said. Fuelled by high aspirations, India’s growth story is playing out far beyond the metros, in tier 2 and 3 cities, said Sandeep Ghosh, group country manager, India and South Asia at Visa.

“With a young demographic and an expanding middle-class, India’s tier 2 cities and beyond, are displaying a greater propensity to spend,” he said. “Insights from our upcoming Visa Consulting & Analytics India Study shows that in the last five years, across tier 3+ towns, the number of credit cardholders spending above ₹2 lakh annually grew 4x-compared to 1.4x growth in annual card spends in tier 1 cities-indicating a democratisation of affluence of sorts.”

Luxury watch sales in India’s tier 2 and tier 3 cities are on the rise, driven by increasing digitalisation, said Sanjay Mishra, director, India, FM International Watches & Jewellery Pvt Ltd (Franck Muller).

“Every Indian market has its own significance such as Ahmedabad, which is known for its high-spending capacity and affinity for luxury goods, or Pune, which is a significant market for luxury watches, with consumers seeking premium products,” he said. “Lucknow and Kochi are emerging as a key market for luxury watches and Surat has been a promising market due to its per capita spends and proximity to Mumbai. Some customers are spending upwards of ₹26 lakh per annum on luxury goods online. We are planning to have a presence in Ahmedabad in 2025.”

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Tier 2, 3 locations

At Luxepolis, an online marketplace for certified pre-owned and discounted luxury goods, the share of sales in tier 2, tier 3 locations is up 52 per cent this year from 42 per cent two-three years ago, said founder Vijay KG.

“Our customers are spread across markets such as Surat, Jaipur, Jodhpur, Udaipur, Gangtok and Kochi, Solapur, Aurangabad, Salem and Tiruchirappalli,” he said. “There is greater awareness among consumers and we have seen customers from Khammam in Telangana asking for marquee and niche bags from brands such as Givenchy and Chloe.”

BSE-listed Ethos Ltd, which retails luxury watches, has launched boutiques in locations such as Kochi, Dehradun and Mangaluru, according to a November investor presentation.

“Since April 2024, we have opened 12 new stores, with plans to open 13 more by the end of financial year 2025, in line with our objective to expand our presence quickly and enter new cities where we currently do not have a presence,” MD and CEO Pranav Saboo said in the investor presentation. “We are now operational in 26 cities with a total of 72 stores.”

  • Published On Dec 24, 2024 at 11:07 AM IST

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