Why more Consumers Buy Luxury Brands in India

Over the years, India has become one of the largest frontiers of luxury purchasing. The emerging luxury brands in India such as Michael Kors, Versace, Calvin Klein, Roberto Cavalli, Missoni all have set up their ventures in metropolitan cities like Delhi. The main reason behind this is that these niche brands are providing luxury styles at affordable rates by which India’s retail Industry is booming.

According to recent estimates, “the size of the global luxury market across the world is to be around $2 trillion.” However, the biggest competitor of India, China has faced many challenges over the few years relating to luxury consumption, regulatory issues, tariff structures and currency reasons by which the luxury brands stores across all categories began to shut stop. As a consequence, the entire global luxury industry including some countries such as Brazil, Russia, South Africa was severely affected with limited growth potential.

Alone, India is the only country which is expected to emerge as the world’s fastest-growing major economy. So, the luxury brands are taking initiative to expand their business in the Indian market. Now, the already existing brands in India like Gucci, Armani, Versace, Hermes, Jimmy Choo, etc. are eyeing the Indian market with expansion strategies and distinctive style.

If we talk about Indian consumers, the people are giving more preference to luxury goods as non-luxury goods are considered as inferior and low class. According to studies, “there is a change in customers buying behaviors which have changed over the years and there is a psychology behind why consumers are choosing luxury goods. The following are the reasons which are explained below:

Self-Esteem and Luxury Goods

According to a study published by the Journal of Experimental Social Psychology, “The low self-esteem is considered as the big factor whether the customer will buy luxury good which he can’t afford.” A luxury brand such as Infinite Luxury comes into the limelight which goes a long way in increasing the self-esteem and providing a sense of belonging. Another good reason why some people buy luxury brands is a sense of accomplishment. People love to buy $500 dress from Versacestore in Delhi by which they reward them for their hard work and want to flaunt their attire, which they typically cannot afford.