Buyers from small towns and cities propelling growth of high-end brands
There is a growing influence of the Henry – High earners, not rich yet – consumer group on sales of luxury goods and experiences. Tata Cliq Luxury, which generates 55% of its sales from non-metro areas such as Panchkula and Mysore, confirms this trend.
Smaller Indian cities are driving significant growth in luxury shopping, thanks to the increased access provided by online platforms, according to a report in ETOnline. It cites a Tata Cliq Luxury report showing that towns like Botad in Gujarat and Asansol in West Bengal are seeing a surge in purchases of high-end footwear, watches, clothing, and accessories. This trend marks a shift away from the traditional concentration of luxury shopping in major metropolitan areas like Mumbai, Delhi, and Bengaluru.
“Luxury is no longer the domain of high net-worth individuals. Customers from tier-2 and 3 towns and new geographies within the metros are driving a radical reboot of the industry,” analysts noted. The report highlights the growing influence of the “Henry” (high earners, not rich yet) consumer group. This segment consists of working professionals with rising incomes who are increasingly interested in luxury goods and experiences.
Tata Cliq Luxury, which generates 55% of its sales from non-metro areas such as Panchkula and Mysore, confirms this trend. “This cohort is the working population that is earning well and actively seeking out luxury experiences and goods,” said Gopal Asthana, CEO at Tata Cliq Luxury. He added, “These consumers have propelled big jumps in the sales of beauty, accessories, apparel and footwear, and their order value is comparable to those of metro consumers.” Industry experts observe that the customer base for luxury goods is evolving from established wealthy individuals to include professionals in smaller cities.
Luxury brands, including international names like Bvlgari, are embracing online platforms to reach these new markets in India. E-commerce sites like Ajio Luxe are helping brands overcome the limitations of physical store availability in smaller towns. The report also reveals rising demand for luxury items beyond fashion and jewellery, extending to categories like art, fuelled in part by social media.
Unlike traditional luxury shoppers, these new customers are more informed and conduct research before buying. “In the digital age, they aren’t willing to be mere recipients of a brand’s offerings. Instead, they are leveraging knowledge – available via social media, websites and customer reviews to assess their choices,” industry experts explained. Data from Tata Cliq Luxury shows that customers typically browse six to seven brands before making a purchase, regardless of the product category.
Looking ahead, analysts predict that Gen Z and Gen Alpha will become the primary target group for luxury brands. These generations are expected to drive the pre-owned luxury market, favour a combined online and in-person shopping experience, and demand greater transparency from brands.