DLF, a leading luxury mall in northern India, is witnessing a growth of 50% for watches, branded jewellery and ready-to-wear items from a year earlier.

“There is a noticeable uptick in overall expenditure, with an 8% growth in spending per customer compared to the previous year. So, we are expecting increased spending across all luxury categories, such as clothing, beauty and personal care, during the upcoming festive season. We have also witnessed a positive response from tier-2 and 3 markets,” said Pushpa Bector, senior executive director of DLF Retail.

Leading international designers such as Louis Vuitton, Gucci, Dior and Cartier, among others, are setting the pace with a rise in actual sales over last year. Couture designers are also reaping significant benefits from the festive season. It is also statistically true for The Collective, a luxury multi-brand retailer owned by the Aditya Birla group. Typically, more than 35% of the business’s annual accessories sales happen during this time. There is also demand for ‘distinctive’ products, the company said.

Consumer sentiment during the festive season is also positive for jewellery brand Malabar Group, which is witnessing pent-up demand, setting the stage for robust festive season sales. The brand expects a 150% increase in sales compared to a year earlier.

With the luxury jewellery segment witnessing an uptick due to changing preferences and higher disposable income, the company has launched a luxury diamond collection for this season.

The car market is also witnessing a positive trend. Naveen Soni, the president of car maker Lexus India, said the market usually becomes more active during the festival season, and buyers prefer receiving their vehicles in the lead-up to Diwali.

“We crossed our entire annual sales of 2022 in August this year and expect that we will grow at least by 40% over last year by the end of 2023. SUVs are the flavour of the season,” he said.

Similarly, sales of some unusual luxury goods like cigars are also growing. Raahul Kapoor, the co-founder of The India Cigar Club, said: “This season, we are witnessing a high turnover for cigars in the midpoint price range. So, the quantity and number of people looking for well-stored and maintained premium non-Cuban cigars is much higher during the festivities.”

India’s luxury goods market is among the world’s fastest-growing, with projections to reach $8.5 billion in 2023, marking a rise of $2.5 billion over 2021, according to Euromonitor International.

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Updated: 22 Oct 2023, 11:57 PM IST