“E-commerce has expanded the luxury goods industry’s reach and made it more accessible,” said Gopal Asthana, CEO, Tata CLIQ. “At Tata CLIQ Luxury, around 55% of the overall platform revenue comes from non-metro markets.”
The company’s TimeVallee portfolio, which includes brands such as Cartier, IWC, Jaeger-LeCoultre, Panerai and Piaget, also has around 40% of its sales from non-metropolitan markets. “The rising demand not only reflects the evolving aspirations of consumers across India, but also reinforces our commitment to making premium and luxury brands available nationwide.” Asthana said.
“Improving propensity to spend” | Page 13
Neeraj Walia, managing director and CEO of Montblanc India, said online business from small towns has doubled compared to last year.
“We see our clients picking up limited edition and special products across Ranchi, Kanpur, Guwahati and Gwalior.When it comes to online sales, we service over 320 cities.Approx. A year and a half ago, that number was about 230,” Walia said. “The leather sector is doing very well,” he added.
Travel retail on the rise
Travel retail has also recovered and air connectivity has become more widespread.
“We have boutiques at Bangalore and Delhi airports, and we see non-metro customers picking up our products during transit and when entering and exiting the airport,” Walia said. Sandeep Ghosh, Group Country Manager, India and South Asia, Visa He said he is doing so.
“With a young demographic and a growing middle class, India’s tier-2 and above cities are exhibiting higher spending habits,” he said. “Insights from the upcoming Visa Consulting & Analytics India Study show that in the last five years, the number of credit card holders spending more than Rs 200,000 annually across Tier 3 and above cities has increased 1 city – indicating a democratization of affluence.”
Sanjay Mishra, Director, India, FM International Watches & Jewelery Pvt Ltd (Franck Muller) said that increased digitalization is increasing luxury watch sales in India’s tier 2 and tier 3 cities. said.
“Every market in India has its own importance, such as Ahmedabad, which is known for its high spending power and affinity for luxury goods, and the important market for luxury watches, where consumers demand premium products. Pune etc.,” he said. “Lucknow and Kochi are emerging as major markets for luxury watches, with Surat a promising market due to high per capita spending and proximity to Mumbai. Some customers spend as much as ₹260 a year on luxury goods online. We are planning to be based in Ahmedabad in 2025. ”
Tier 2, 3 locations
Luxepolis, an online marketplace for certified pre-owned and discounted luxury goods, says secondary and tertiary locations accounted for 52% of sales this year, up from 42% a few years ago. says founder Vijay KG.
“Our customers are spread across markets like Surat, Jaipur, Jodhpur, Udaipur, Gangtok, Kochi, Solapur, Aurangabad, Salem and Tiruchirappalli,” he said. “There is growing awareness among consumers and we have seen customers in Khammam, Telangana looking for marquee and niche bags from brands like Givenchy and Chloe.”
Ethos, a BSE-listed company that retails luxury watches, has set up boutiques in places such as Kochi, Dehradun and Mangaluru, according to an investor presentation in November.
“Since April 2024, we have opened 12 new stores and in line with our goal to rapidly expand our presence and enter new cities where we currently do not have a presence, we will continue to do so until the end of fiscal 2025.” We plan to open 13 more stores in 2020,” MD and CEO Pranav Saboo said in a presentation to investors. “Currently, we have a total of 72 stores in 26 cities.”
