Luxury Goes Local: How Smaller Indian Cities Are Redefining High-End Shopping
Luxury shopping in India is no longer limited to metro cities, with 43% of buyers now coming from smaller towns. Traditional old-money shoppers are being joined by new affluent consumers from Tier 2 and Tier 3 cities, where watches, footwear, and apparel are the most popular categories. Rising incomes and digital media have made high-end brands more accessible across the country, prompting luxury brands like Bvlgari to expand through online platforms and exclusive local events. Since physical retail is still limited in smaller cities, brands are using pop-up stores and strong after-sales services to engage customers.
The market for pre-owned luxury goods, particularly watches and handbags, is also growing, as Swiss watch prices have surged, making resale an attractive option for new collectors. Indian consumers value storytelling in luxury, expecting brands to respect and reflect their culture. Successful brands integrate Indian traditions, such as Bvlgari’s mangalsutra necklace and Dior’s partnerships with local artisans. Emotional connections and authenticity are key to winning over Indian luxury shoppers, as the market shifts from just selling products to creating experiences and meaningful narratives.
Luxury Goes Local: How Smaller Indian Cities Are Redefining High-End Shopping
For years, luxury shopping in India was perceived as an exclusive privilege for residents of major cities like Mumbai and Delhi. However, this notion is evolving. A recent report by Tata Cliq Luxury, Thinking Beyond the Cart: Elevating Luxury E-commerce, reveals that while 43% of India’s luxury shoppers still reside in metro areas, a significant and growing segment now comes from smaller towns. This shift is transforming how brands approach the Indian market.
New Buyers from Smaller Towns
Fashion designer Masaba Gupta highlights that the typical luxury consumer—once limited to old-money families in big cities—now includes successful entrepreneurs and professionals from towns like Saharanpur. On Tata Cliq’s platform, shoppers in Tier 2 and Tier 3 cities primarily purchase watches, shoes, and clothing, whereas metro buyers favor accessories, watches, and apparel. This distinction suggests varied priorities: smaller-town shoppers may focus on practicality and visible status symbols, while metro buyers lean toward trend-driven luxury items.
Why the Shift Happened
According to Anjali Gaekwar, co-founder of Lighthouse, a luxury consultancy, this transformation gained momentum after the Covid-19 pandemic. Rising incomes in smaller cities, coupled with remote work opportunities, have enabled people to afford luxury without relocating to metropolitan areas. Additionally, digital platforms like Instagram have played a crucial role in making high-end brands more visible and aspirational across India.
How Brands Are Adapting
Luxury brands are responding to this demand with innovative strategies. Bvlgari, for instance, now offers online sales and hosts exclusive events in cities like Chandigarh and Ahmedabad. CEO Jean-Christophe Babin states that the brand is actively fostering relationships in these emerging markets. Since luxury malls are scarce outside major cities, brands are leveraging pop-up stores and prioritizing after-sales service to build customer trust. Gaekwar emphasizes that trust and personalized service are essential for luxury shoppers in smaller towns.
The Rise of Secondhand Luxury
Another significant trend is the increasing popularity of pre-owned luxury goods. While Indians have traditionally passed down heirlooms like gold jewelry and sarees, secondhand fashion has faced resistance. Platforms such as Poshmark and Relove have struggled, but pre-owned watches and handbags are gaining traction.
Watches, particularly Swiss brands, are viewed as timeless investments. Tata Cliq Luxury has reported growing demand for pre-owned watches from cities like Ajmer and Raipur, while Gucci handbags remain popular in Tier 1 and Tier 2 markets.
Jay Makhijani, founder of Jay’s Watch Store, notes that Swiss watch prices have surged by 600% over the past 17 years. The pre-owned market provides an accessible entry point for new buyers, allowing them to own luxury timepieces without enduring long waitlists or brand exclusivity screenings.
Storytelling: The Heart of Luxury in India
The Tata Cliq report underscores the importance of storytelling in the Indian luxury market. Given India’s rich cultural history—where narratives are deeply woven into art, textiles, and traditions—consumers expect brands to resonate with their heritage. Srimoyi Bhattacharya of Peepul Advisory asserts that generic advertising is no longer sufficient; brands must demonstrate an understanding of Indian values and culture.
Successful luxury brands are blending global appeal with Indian traditions. Bvlgari, for example, introduced a mangalsutra-inspired necklace and a kada-style bracelet. Dior collaborated with Mumbai’s Chanakya School of Craft to support and train artisans, highlighting India’s craftsmanship. Even Hermès has worked with Indian designers to create collections that reflect local aesthetics. These efforts foster emotional connections with consumers by respecting and celebrating their cultural identity.
Looking Ahead
India’s luxury market is no longer just about selling high-end products—it’s about creating meaningful experiences. To thrive, brands must balance digital expansion with physical touchpoints, cater to diverse regional tastes, and embrace India’s storytelling traditions. As purchasing power in smaller cities rises, the future of luxury will be shaped by inclusivity, authenticity, and innovation.
Whether through pop-up stores, pre-owned markets, or culturally resonant designs, the goal remains clear: making luxury feel personal, accessible, and deeply connected to India’s evolving identity. The luxury landscape is breaking free from its metro-centric roots, driven by new buyers, creative strategies, and a growing appreciation for cultural heritage. For brands, success will depend on how well they listen, adapt, and tell stories that resonate with India’s heart.