India's luxury market is experiencing a significant transformation, drawing the attention of foreign luxury jewelers eager to capture a share of this rapidly expanding market. Several factors contribute to this increased interest, including a growing affluent population, rising disposable incomes, and evolving consumer preferences.

India's luxury market is projected to reach nearly $12 billion by 2028, outpacing the growth rates of many established markets. This growth is fueled by economic liberalization, which has led to rising affluence and a greater desire for luxury goods. By 2027, India is forecasted to be home to almost 1.5 million USD millionaires, strengthening the base of luxury consumers.

The jewelry segment remains the largest in India's luxury market, deeply rooted in cultural values and life events. McKinsey forecasts the global jewelry industry to grow between 4-6% through 2027, with demand for high jewelry expected to surge alongside the growing wealthy population. In India, diamond-studded jewelry is poised for the biggest growth in 2025, with the organized sector growing 20% year-on-year. Redseer Strategy Consultants forecasts India's precious jewelry market to grow at a healthy 11-13% CAGR until 2028.

Several key trends are shaping the strategies of foreign luxury jewelers entering the Indian market. One significant trend is the increasing demand for personalization. High-net-worth individuals (HNWIs) and affluent consumers in India seek bespoke products that resonate with their unique identities and lifestyles. Approximately 60% of luxury consumers prefer brands that offer customization options, ranging from monogrammed items to tailored pieces.

Another trend is the expansion of luxury markets beyond major metropolitan hubs. A significant portion of growth is driven by consumers in Tier II and Tier III cities, accounting for approximately 40% of luxury sales. This expansion is facilitated by improved digital access, the proliferation of e-commerce platforms, and rising affluence in these emerging markets.

Foreign luxury jewelers are adapting their strategies to cater to the unique preferences of Indian consumers. This includes incorporating local cultural elements into their designs and offerings. For example, Bulgari is turning its attention to India as it seeks to offset weakening luxury demand in China. Bulgari aims to secure a significant market share while preserving its brand identity by adapting products to local traditions. The luxury brand has tweaked its Bulgari necklace and a B.zero1 bracelet to fit Indian traditions so that the products look 'Indianised'.

The increasing influence of millennials and Gen Z is also shaping the market. These young, affluent, tech-savvy consumers are driving innovation in products, services, and business models in the luxury realm. By 2030, India is estimated to have around 370 million Gen Z consumers between the ages of 10-25. Luxury companies need to pay close attention to this cohort as they will be the influencers for the future. Gen Z will choose brands that are ethical, socially responsible, and transparent.

The online platforms also serve as a launchpad for international luxury brands entering the Indian market. During 2022, Myntra, an ecommerce fashion platform onboarded 25 international fashion labels and 50 foreign beauty brands. Today across the platform, a user can buy from over 400 international brands like Bvlgari, Movado, Tissot, etc. Myntra has also partnered with ABFRL's The Collective, a multi-brand luxury lifestyle retailer, to offer a wider range of high-end products on its platform under the Myntra Luxe section.

In conclusion, India's luxury jewelry market presents a significant opportunity for foreign players. By understanding the evolving preferences of young, wealthy Indian buyers and adapting their strategies accordingly, these jewelers can establish a strong presence and capitalize on the market's rapid growth.