Luxury brands boost ad spends in India as market hits $12B

India is fast emerging as one of the world’s most exciting luxury destinations, not just as a booming consumption hub but also as a wellspring of cultural inspiration for global brands. As Indian consumers deepen their engagement with luxury, brands are responding with heightened investments in advertising, marketing, and experiential storytelling across the market. It’s not just about increasing ad spends; experts say luxury brands are rebalancing their media mix, with digital, influencer, and experiential marketing together commanding nearly half of total spends, while print continues to anchor trust and aspiration.

Inside India’s booming luxury market

According to Euromonitor International, India’s luxury market is set to grow 10% in 2025 to USD 12.1 billion, driven by a shift from product-based luxury to experience-led indulgence rooted in wellness, lifestyle, and emotional connection. While e-commerce is expanding, physical stores still contribute 81% of sales, underscoring India’s preference for high-touch retail. The Red Lab–Hurun India Wealth Report 2025 further highlights the country’s rising affluence, with 8,71,700 millionaire households, a 90% surge since 2021. A new generation of young, tech-savvy millionaires is fuelling demand for bespoke goods, experiential travel, and conscious luxury, with Tier-2 cities now accounting for over 20% of India’s wealthy, signalling the broadening base of affluence.

Industry experts point to two converging forces driving this momentum: a rapidly expanding base of affluent consumers and India’s deep reservoir of design, craft, and cultural heritage that is reshaping creative strategies across the luxury sector.

International luxury houses too are taking note, and taking cues. From Prada’s Kolhapuri-inspired sandals at its Spring/Summer 2026 show to Louis Vuitton’s auto-rickshaw-shaped bag and India-hued palette under Pharrell Williams, global brands are embracing India’s motifs and craftsmanship in their design language. Bulgari’s Mangalsutra sautoir and Kada-inspired bracelet collections further reflect this cultural fusion, where Indian symbolism meets European artistry. Together, these developments underline how India today stands at the crossroads of influence and aspiration, both a muse and a market shaping the future of global luxury. Experts further said luxury brands are rebalancing their media mix, with digital, influencer, and experiential marketing together commanding nearly half of total spends, while print still accounts for about 20–25%, anchoring trust and aspiration.

The DS Group, which manages luxury brands spanning gourmet retail and high fashion, from Le Marché, Le Gourmet and L’Opéra to luxury fashion stories such as Brioni, Tom Ford, Berluti, Aquazzura and Brunello Cucinelli has seen a marked rise in consumer appetite. “Indian consumers have become increasingly receptive to the luxury brands within our portfolio, reflecting a maturing market and rising aspirations. Over the past few years, there has been a strong surge in demand for premium experiences,” said Ritesh Kumar, Luxury, DS Group.

He added that the response to these brands, particularly in Delhi, has affirmed a shift in consumer perception; luxury today is being embraced as a lifestyle choice by a broader, more discerning clientele.

Ruchi Shangari, General Manager – Marketing, Tarz Distribution, noted on behalf of Davidoff that the company’s marketing investment in India has doubled over the past year, underscoring the market’s growing strategic importance within its regional portfolio. Tarz Distribution manages an extensive lineup of luxury and premium brands, including Dior, Givenchy, Burberry, Make Up For Ever, Elizabeth Arden, Tiffany & Co., Calvin Klein, Davidoff, Marc Jacobs, Chloé, Tonino Lamborghini, Elle, Alfa Romeo, and Beverly Hills Polo Club.

“We’ve always believed in the strong potential of the Indian market and have been investing here for many years,” Shangari added.

Experts echoed this sentiment, noting that India has evolved from a ‘potential’ luxury market to a ‘priority’ one, transitioning from a space to watch to a key target for global luxury brands.

“Over the past couple of years, we’ve seen global luxury brands not just expanding their retail footprint here, but also customizing their communication and product lines specifically for Indian audiences,” said Anil Solanki, Senior Director at Dentsu X. He noted that brands such as Louis Vuitton, Gucci, and Burberry are creating India inspired collections, while Rolex and Cartier are expanding their boutique footprint to cater to the rising ultra HNI segment. Even Apple’s Diwali campaigns and Tiffany’s India debut underscore how India has become integral to global brand storytelling. Platforms, too, view India as a testing ground. YouTube, for instance, launched Shorts monetization and regional creator tools here first, reflecting the country’s growing influence on global strategy.

Senthil Kumar Hariram, Founder and Managing Director, FTA Global, said two key factors are driving this shift: a rising class of affluent, globally minded consumers beyond Tier-1 cities, and India’s high digital engagement enabling precise targeting. He added that brands now view India not just as a market to sell in, but as a source of inspiration and a testbed for culturally rooted luxury storytelling.

He said, “Over the last few years, brands have matured from a one-size-fits-all regional playbook to an Indiaspecific approach, which includes localized storytelling, an emergent product proposition based on Indian craft and culture, and sustained investment in retail and experience.”

Media mix

For luxury brands, print remains the preferred medium for building trust and reaching affluent consumers, though digital is rapidly gaining ground as engagement and reach deepen online.

“Luxury brands continue to rely on print for its trust and premium appeal, but digital, influencer, and experiential marketing now command nearly half of their media budgets,” Solanki said and added that the focus has shifted to immersive, digital-first storytelling that connects heritage with modern Indian aspirations.

 Hariram outlined an effective media mix for luxury brands, noting that digital channels now command around 35–40% of spends for discovery, personalization, and measurable conversions. Print and editorial partnerships take up 20–25%, anchoring credibility and aspiration, while experiential marketing accounts for 15–20% through invite-only launches and cultural collaborations. The remaining 10–15% goes to influencer and talent tie-ups, where niche creators and selective ambassadors drive authenticity and targeted storytelling.

He noted that print still continues to be a strong medium for these brands. “Luxury titles, curated supplements, and high-end editorials still anchor credibility and craft the aspirational context luxury needs. These placements are about trust and positioning rather than traffic.”

Meanwhile, Shangari explained that Tarz Distribution follows a “glocal” strategy in India, with most investments directed toward digital, followed by influencer and experiential marketing, and a smaller share allocated to print, tailored to what works best for luxury beauty brands in the market.

Kumar of DS Group added, “We prioritise personalised immersive brand experiences, and live events to foster deeper engagement on a one-on-one level.”

Luxury brands’ future in India

 As luxury consumption surges in India, brands are stepping up investments in flagship stores, Tier-2 expansion, and integrated marketing strategies. The focus is shifting toward experience-led retail, digital storytelling, and influencer collaborations, as India cements its position as one of the most dynamic and promising luxury markets globally.

Kumar noted that the company, recognising India’s growing premiumisation trend, has introduced value-added luxury lines and expanded into gourmet and hospitality. The focus, he said, is on customer experience, personalised service, and closed-loop communication to strengthen brand affinity among an increasingly diverse audience. “As India’s luxury market continues to grow, our strategies will evolve accordingly—driven by data, creativity, and consumer insight.”

This was further reiterated by Shangari who said, “Our vision for our brands has and continues to be focused on Omni channel acceleration with a 360-degree approach. Our brands are all set to ride on the wave of the beauty boom that India is experiencing.” Thus, experts agree that India has moved beyond being an emerging opportunity to become a key pillar of global luxury strategy. With rising affluence, digital sophistication, and renewed pride in local craftsmanship, brands are localising design, storytelling, and retail experiences.

As luxury players invest in experiential retail and digital innovation, India is set to evolve from luxury’s fastest-growing market to one of its most influential.