Luxury shopping expands in India's small towns as E-commerce grows

Smaller Indian cities are increasingly driving the growth of luxury shopping, thanks to the accessibility provided by online platforms. A report by Tata Cliq Luxury highlights the surge in high-end purchases from towns like Botad in Gujarat and Asansol in West Bengal, marking a shift away from traditional metropolitan hubs such as Mumbai, Delhi, and Bengaluru. The growing influence of the "Henry" (high earners, not rich yet) consumer group, consisting of working professionals with rising incomes, is fueling this change. This demographic is actively seeking luxury goods and experiences, contributing significantly to sales in categories like footwear, watches, clothing, and accessories. Tata Cliq Luxury, for instance, generates 55% of its sales from non-metro areas like Panchkula and Mysore. 

Luxury brands, including international names like Bvlgari, are embracing online platforms like Ajio Luxe to cater to these new markets. Electronic commerce (E-commerce) helps overcome the limitations of physical stores in smaller towns, extending demand beyond fashion and jewelry into categories like art, driven partly by social media. Unlike traditional luxury shoppers, these customers are more informed and research products thoroughly before purchasing. Looking ahead, Gen Z and Gen Alpha are expected to become the primary target groups for luxury brands, driving the pre-owned luxury market and demanding a seamless online and in-person shopping experience with greater transparency from brands. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.