Small towns log on to shop luxury brands

MUMBAI: India's small towns are splurging on luxury shopping - as the growth of e-commerce has democratised access to luxury. Far beyond the metros of Mumbai, Delhi and Bengaluru, home to some of India's richest, luxury shopping has reached places like Gujarat's Botad and West Bengal's Asansol where people are shopping for luxury footwear, watches, apparel and accessories, a report by Tata Cliq Luxury showed.

"Luxury is no longer the domain of high net-worth individuals. Customers from tier-2 and 3 towns and new geographies within the metros are driving a radical reboot of the industry," analysts said. In fact, alongside the affluent who have been exposed to luxury, the 'Henry' (high earners, not rich yet) consumer cohort is driving the demand for luxury. "This cohort is the working population that is earning well and actively seeking out luxury experiences and goods," said Gopal Asthana, CEO at Tata Cliq Luxury, which gets 55% of its sales from non-metros like Panchkula and Mysore.

"These consumers have propelled big jumps in the sales of beauty, accessories, apparel and footwear, and their order value is comparable to those of metro consumers," Asthana said. The consumer base today has shifted from institutional or old money - the early luxury shoppers to say a business head from a small city, industry experts said.

Global luxury brands like Bvlgari have gone online in India to cater to customers in smaller towns. The limited supply of shopping malls restrict physical reach of luxury brands. The emergence of online luxury platforms like Ajio Luxe have enabled brands to expand their footprint. The demand for luxury in not just limited to fashion and jewellery, even categories like art have expanded their base, helped partially by the reach of social media platforms, the study showed.

The new luxury customers unlike their traditional counterparts are more informed and they do their research before making a purchase. "In the digital age, they aren't willing to be mere recipients of a brand's offerings. Instead, they are leveraging knowledge - available via social media, websites and customer reviews to assess their choices," said industry experts. On Tata Cliq Luxury, for instance, a customer, regardless of category browses six to seven brands before making a purchase.

Gen Z and gen Alpha will be the largest target segment for luxury brands. "They are propelling the growth of pre-loved luxury, seeking a phygital approach and demanding transparency in a brand's communications and actions," said analysts.