Luxury: 86 percent of Indian consumers plan to increase spending over next 12 months

Nearly two thirds of Indian and Chinese consumers have spent over 20,000 euros on luxury goods in the past 24 months. Additionally, 86 percent of Indian consumers plan to further increase their spending over the next 12 months, the most significant figure among all markets analysed. The data confirms that luxury growth continues, yet drivers and geographies are shifting, as highlighted by the new Luxury Global Barometer from Simon-Kucher, a global strategic consultancy founded in Germany in 1985, conducted among more than 1,000 consumers worldwide.

The study captures a sector that remains resilient, with India and China leading the market.

"Our recent study confirms a two-speed luxury market: on one hand, mature markets that are more selective and value-conscious; on the other, new geographies such as India and China that are accelerating and redefining the global luxury landscape," commented Francesco Fiorese, partner at Simon-Kucher, and Marco Torino, senior director, in a statement. "For brands, it becomes crucial to evolve towards more engaging consumer models through experiential offerings and hyper-targeted pricing, optimisation of distinctive assortments, and targeting consumers with highly dynamic expectations."

New purchasing behaviours are also driving India

More mature geographies are showing signs of slowdown but remain solid. Consumers are gravitating towards more selective and conscious choices. This paradigm shift opens new strategic challenges for players in the sector.

New purchasing behaviours are also driving India: less loyalty to individual brands, strong focus on status symbols, and a markedly higher propensity for online purchasing. Less than 50 percent prefer physical stores, compared to over 70 percent in the US, Europe and China.

India also records a Net Promoter Score of plus 60 for the luxury purchasing experience, the highest among the markets considered.

US and European markets remain stable, but signs of rationalisation emerge

In the US and Europe, the market remains stable, yet signs of rationalisation are emerging. Data shows that over 60 percent of consumers perceive a price increase over the past 24 months. One in three Americans believes that value for money has worsened. Among notable trends is the increase in the share of "quiet luxury enthusiast" buyers in the US, which grew by 22 percentage points, signalling a transition towards more discreet, less logo-driven luxury.

Despite rising prices, market segments are not reacting uniformly. The perception of price increases is strong in the US, Europe and India, particularly in categories such as cars (up to 45 percent in India and 42 percent in the US), jewellery (47 percent in India) and luxury experiences. The watch sector, however, remains an exception: less than 10 percent of respondents perceive a worsening of value for money, confirming the segment's solidity.

The study identifies seven shopper archetypes, from icons collectors to power patrons, quiet luxury enthusiasts to status shoppers, which vary profoundly from market to market. India shows growth in fashion forward icon profiles (plus 17 points), in line with Chinese dynamics. The US is amplifying the push towards discretion and minimalism.

The study highlights significant room for improvement in marketing activities, particularly in the US, China and Europe, where over one third of consumers judge the personalisation and effectiveness of communications received as insufficient.

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