Exploring India’s Luxury Market with Mohan Murti at the Luxury Innovation Summit
Business
October 15, 2024
At the recent edition of the Luxury Innovation Summit, Porterium Magazine had the privilege of meeting Mohan Murti, a distinguished global strategist and Head of Europe for India’s largest private sector company. During the summit, Murti presided over fascinating insights into the rapidly growing luxury market in India, revealing little-known facts about the intersection of culture, craftsmanship, and modern luxury. His deep knowledge of India’s evolving economic landscape and his book Walking the Indian Labyrinth - A Pilgrimage to Eternity set the stage for a rich conversation about India’s luxury sector.
Liliya Rogova Tippetts, Editor-in-Chief of Porterium Magazine sat down with Mohan to explore these ideas further, delving into India’s role in the global luxury industry, the value of handcrafted artisanship, and the cultural significance that shapes the nation’s growing presence in this exclusive market.
1. Your book, Walking the Indian Labyrinth, offers a nuanced perspective on India’s complexities. How do these intricacies play a role in shaping the country’s luxury market?
Mohan: Thank you for that question. Yes, my book, Walking the Indian Labyrinth, does delve into the intricate layers of India, and that’s what I find fascinating about this country—its sheer complexity. When we talk about India, we’re not just talking about a singular narrative; we’re talking about multiple dimensions that coexist—historical legacies, regional diversities, cultural traditions, and the new aspirations of a rapidly modernizing population. All of these layers play a significant role in shaping India’s luxury market.
What I’ve tried to explore in the book is how India’s past and present intersect in ways that are sometimes harmonious, and other times, conflicting. For instance, the cultural richness that India has inherited from its history is one of the driving forces behind the country’s growing influence in the global luxury market. Artisanal craftsmanship, which is so deeply rooted in our traditions, has always been a part of India’s identity. But today, this craftsmanship is being recognized and celebrated globally, not just as a cultural artifact, but as a luxury. Brands around the world are increasingly looking to Indian artisans for their expertise, and that speaks volumes about the country’s role in shaping global luxury trends.
At the same time, India’s diversity brings its own challenges. The country is incredibly fragmented—not just geographically, but socially and economically. In „Walking the Indian Labyrinth“, I talk about these regional disparities and social hierarchies, and how they influence consumer behavior. On the one hand, you have this emerging class of affluent consumers—people who are ready and willing to embrace global luxury brands. These are people who have the financial power and, more importantly, the desire to buy into the luxury lifestyle. On the other hand, there’s still a large part of India that is rooted in more modest means, where luxury is not defined by material wealth but by different values altogether.
So, the challenge for luxury brands is navigating this duality. How do they appeal to the aspirations of this new class of wealthy consumers while also staying true to the cultural and social values that are still deeply ingrained in the country? That’s where the nuances come in, and that’s what I explore in the book. India’s luxury market is not just about selling high-end products; it’s about understanding these deeper layers of identity, heritage, and aspiration.
In essence, Walking the Indian Labyrinth offers a multidimensional perspective of India. It’s about more than just the challenges the country faces—it’s about how these complexities shape the way Indians engage with luxury. It’s a journey through India’s evolving narrative, one that is steeped in tradition but also very much focused on the future. And for anyone looking to understand how these intricacies influence India’s luxury market, I believe the book provides a comprehensive lens through which to view the country’s enormous challenges and slow but sure transformation.
2. India has long been a source of artisanal craftsmanship. Many luxury brands incorporate Indian artisans into their production with the last touch in their country to label the goods Made in France, in the example of Dior. How significant is their role in shaping global luxury trends?
Mohan: Very significant. Let me explain - India's artisanal craftsmanship has become a major force in shaping global luxury trends. It’s really fascinating to see how international luxury brands are drawing so much inspiration from India’s rich heritage and the incredible skills of its artisans.
They’re not just using Indian craftsmanship; they’re weaving elements of our culture into their global narratives, which I think speaks volumes about how deeply connected these luxury brands are becoming with local artistry.
A perfect example of this was Dior’s iconic fashion show in Bombay. It wasn’t just about showcasing a collection—it was a real celebration of Indian artisans. Dior actually acknowledged and honored the craftsmanship that’s such a core part of India’s identity. It put India’s rich artisanal skills on an international stage, making it clear that global luxury can’t really thrive without engaging with local, authentic artistry. And Dior’s collections have integrated Indian designs and motifs so beautifully. It’s not just surface-level; it’s a merging of cultures that offers something truly fresh and unique to luxury consumers worldwide.
On top of that, we’ve seen how international luxury brands are leveraging the influence of Indian celebrities to amplify their global appeal. Take someone like Aishwarya Rai, for instance—she’s been a face of L’Oréal for years, and more recently, Deepika Padukone has been involved with brands like Louis Vuitton. Their presence in these campaigns does more than just endorse products; it blends Indian elegance with global luxury. It’s a powerful statement of India’s rising influence in the luxury world.
And we can’t forget how brands like Hermès are embracing Indian craftsmanship in their own designs. Hermès is known for incorporating traditional elements, but a really interesting example is BVLGARI’s Mangalsutra. They’ve taken this traditional Indian wedding necklace and completely reimagined it in a luxury context. It’s both culturally significant and modern—really a perfect mix of tradition and high-end luxury. Similarly, you’ve got pieces like Dior’s Maharani Pink shoes, which pay homage to India’s vibrant colors and heritage. These designs appeal not only to Indian consumers but also to a global clientele that values uniqueness and cultural depth in their luxury purchases.
There’s also been a noticeable shift in the luxury car space. Brands like Porsche are offering custom options tailored specifically for Indian tastes, with vibrant colors that really resonate with our local preferences. It shows how India’s distinct style sensibility is being recognized, not just as part of the global luxury market, but as a key driver of new trends. Personalization is a big part of that, especially in luxury cars, where Indian consumers are looking for something that feels bespoke and aligned with their tastes.
At the end of the day, India’s artisanal craftsmanship and cultural richness are playing a pivotal role in shaping global luxury trends. Brands are increasingly incorporating Indian influences and collaborating with local talent, which creates this wonderful fusion of tradition and modern luxury. It’s a dynamic narrative that really resonates with consumers all over the world. What’s exciting is that India is becoming not just a contributor but a driving force in the global luxury market. We’re inspiring trends, setting new standards, and emerging as a market of choice for luxury brands everywhere.
3. Can you share any figures and interesting facts or projections for the growth of India’s luxury market in the coming years?
Mohan: Good question! India’s luxury market is experiencing remarkable growth, and it’s truly exciting to witness. We’ve seen a massive shift, especially with the rise of ultra-high-net-worth individuals (UHNWIs) and a younger generation adopting what’s often called the "You Only Live Once" or YOLO mindset. This new wave of consumers, particularly young Indians, is transforming the way luxury brands approach the market.
As of 2024, India’s luxury market is already valued at $8.5 billion, and projections show that by 2030, it could surge to $30 billion. And if we look further ahead, by 2040, we’re talking about a market size of $400 billion, according to Bain & Company.
This rapid growth is largely driven by the sheer number of UHNWIs in India—over 180 billionaires and more than 14,000 ultra-high-net-worth individuals. These numbers alone are staggering, and it’s clear they are setting the stage for a luxury boom.
What’s equally interesting is the role of young Indians in driving this shift. We’re seeing this YOLO mindset take hold—a belief that life is meant to be lived to the fullest, and part of that is indulging in luxury experiences and possessions. For this generation, luxury isn’t just about wealth; it’s about self-expression, personal achievement, and status. This has led to a significant rise in credit card spending, particularly on luxury goods. These young consumers are comfortable spending big on brands like Louis Vuitton, Rolex, or even splurging on a luxury vacation. They see it as part of their lifestyle, not just an occasional treat.
Luxury brands have recognized this shift and are not just setting up shop in India but are also localizing their offerings to better resonate with Indian consumers. For instance, Bulgari has created a Mangalsutra—a piece of traditional Indian bridal jewelry—to tap into local culture, and Dior has introduced its Rani Pink collection, reflecting the vibrant colors deeply cherished in Indian traditions. It’s clear that luxury is no longer about just importing global trends into India; it’s about blending international prestige with Indian heritage.
In the end, it’s this combination of rapidly growing wealth, the rise of a YOLO-driven generation, and increasing credit-fueled consumption that’s making India one of the most exciting luxury markets in the world. We’re watching the country become a key player, not just as a consumer of luxury but also as a producer of it, influencing global trends in the process.
Additional question- isn’t it ironic & paradoxical that India, the land of Mahatma Gandhi known fir his simplicity, non-violence and peace is now becoming a land of people embracing luxury and ostentatious living?
Mohan: That’s a great question, and it’s one I’ve often thought about. Yes, on the surface, it might seem ironic or even paradoxical that India, the land of Mahatma Gandhi—a man known for his simplicity, non-violence, and minimalism—has now become a place where luxury and ostentatious living are embraced by so many. But I believe what we’re seeing today is an evolution of those values, not a rejection of them.
When we reflect on the India of today, it’s clear that the essence of Gandhi’s values has adapted to the progress and aspirations of a modern, dynamic nation. While Gandhi’s attire was the hand-woven loincloth and Khadi shawl, Indian luxury today is defined by richly embroidered, bespoke garments from designers like Dior, Sabyasachi, and Tarun Tahiliani. His simple wooden padukas have given way to fine leather shoes from brands like Ferragamo or Berluti. Even the iconic round spectacles that symbolized his frugality and asceticism have now evolved into luxurious Cartier or Chanel eyewear.
Gandhi’s humble shawl, woven from plain yarn, has transformed into luxurious silk and cashmere wraps from Hermès. And that Ingersoll pocket watch, which cost just a dollar and was one of his few possessions, has now been replaced by names like Audemars Piguet, Vacheron Constantin, and Patek Philippe—the very definition of luxury for many Indians today.
But this shift from Khadi to Hermès isn’t just about material wealth. It’s about a redefinition of aspirations. It reflects the dual identity of modern India—one that remains deeply grounded in its roots but is also soaring into a future full of ambition. So, while Indians today might be living and breathing luxury, they’re also celebrating the possibilities of what India can achieve on a global stage. It’s a nation that’s equally at home in the world of haute couture as it is with its Gandhian legacy.
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