by
Mansvini Kaushik
|
Jun 23, 2025
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Business
Image: Cartier store Mumbai
While global luxury faces a putative 2–5% contraction in 2025, Bain & Company’s June 19 report reveals a compelling counter-narrative: India and Southeast Asia are powering ahead as strategic growth engines in a slowing market.
“Although demand is easing in the short term, the luxury sector has consistently demonstrated extraordinary resilience,” says Claudia D’Arpizio, Bain’s global head of Fashion & Luxury. She highlights how deeply emotional drivers such as self-reward, status, identity, achievement continue fueling luxury even amid uncertainty.
Southeast Asia: Vibrant Demand, Youthful Zeal
Despite headwinds in the U.S. and China, luxury consumption in Southeast Asia is growing steadily, buoyed by strong local economies and tourism recovery.
Young shoppers, particularly millennials and Gen Z, are driving this momentum. Bain cautions that luxury must evolve to align with their cultural values and quest for personalization, pointing to the new frontier for brand relevance.
India: From Supply Powerhouse to Luxury Land of Tomorrow
India is transforming into more than a sourcing hub — it’s fast becoming a core luxury consumer market. Bain projects that emerging economies including India will welcome 50 million new upper-middle-class luxury consumers by 2030.
This demographic shift, coupled with supply chain reconfiguration, makes India a dual powerhouse: a reliable production base and a fertile market. As global luxury houses recalibrate logistics and strategy, India’s role is becoming pivotal.
Bain’s senior EMEA leader Federica Levato underscores this turning point:
“Luxury brands are entering a pivotal new chapter — one that demands sharper focus, greater cultural relevance and growth rooted in purpose.”
What This Means for Luxury Enthusiasts
Discover emerging narratives — More curated brand stories rooted in India and Southeast Asia.
Witness regional infusion — Luxury experiences will align with local culture, demographics, and values.
Expect innovation on-ground — From factory tours to personalized design sessions, regional activations are gaining prominence.
India and Southeast Asia aren’t just fringe markets. They’re central to luxury’s next epoch. Fueled by youthful energy, rising affluence, and strategic supply chain placement, they’re reshaping the future of haute living. As Claudia D’Arpizio aptly puts it, “Emotional drivers will continue building the lasting relevance of luxury within consumers’ lives.”
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Mansvini Kaushik
Mansvini Kaushik is the Editor-in-Chief of Indulge Newsroom, the editorial division of Indulge Global. A seasoned business and investigative journalist, she brings years of experience from Forbes India, where she honed her craft in high-impact storytelling. With a deep-rooted passion for luxury and culture, Mansvini founded Candle Magazine before taking the helm at Indulge Newsroom. She now leads the publication with a vision to redefine luxury journalism in India.
