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Fashion Value Chain
02-05-2025
- Business
- Fashion Value Chain
India's Rising Role in the Global Luxury Market
Ms. Ananya Tiwari, Post-Graduate Academic Scholar in Fashion Management, National Institute of Fashion Technology, Ministry of Textiles, Daman campus Dr Vidhu Sekhar P, Assistant Professor, Department of Fashion Management Studies, National Institute of Fashion Technology, Ministry of Textiles, Daman campus Abstract India, which will have the largest population in the world by 2025, is experiencing a revolution in luxury. Previously regarded as a future market, it has become a crucial source of expansion for major international fashion companies. This article examines how policy changes, technological advancements, changing consumer psychology, and economic growth are all influencing major luxury brands like Galeries Lafayette, Valentino, and Balenciaga to make significant investments in India. In the context of Indian retail, it also critically analyses the difficulties in breaking into new markets and the significance of omnichannel interaction, strategic localization, and long-term brand positioning. To comprehend how fashion management is changing in this dynamic new environment, the study consults recent reports, news coverage, and industry insights. Keywords Luxury fashion, fashion management, Indian market, global retail strategy, brand localization, strategic partnerships, experiential retailing, Gen Z consumers, market expansion, omnichannel. Introduction These days, luxury isn't limited to Shanghai, Paris, Milan, or New York. By 2025, Delhi and Mumbai will have been added to the global narrative as new fashion investment hotspots. India's transition from an aspirational luxury market to a top travel destination is not a coincidence; rather, it is the consequence of rising cultural confidence, technological readiness, and demographic advantage. In addition to entering India, well-known brands like Valentino and Balenciaga are now making investments in ingrained retail infrastructure and marketing tactics targeted at the Indian consumer base (Business of Fashion, 2023). Fashion management professionals working in a post-globalized, digitally integrated, and culturally diverse world can learn a lot from this article, which examines the many factors that have led to India's rise as the next battleground for luxury. India's Economic Context: Fertile Ground for Luxury Among emerging markets, India's economy is currently undergoing one of the most robust post-pandemic recoveries. According to the World Bank (2024), the country's GDP is predicted to grow by 6.8% in 2025, making it the third-largest consumer market in the world by 2030 (McKinsey, 2024). By 2027, it is anticipated that there will be 500 million middle-class Indians, opening up a huge new market for those seeking luxury (Bain & Company, 2023). Additionally, as the number of HNWIs and UHNIs rises, the wealth pyramid is changing. More than 1,200 new millionaires were created in India each month in 2024, according to Credit Suisse (2023), indicating strong growth at the top of the pyramid. This rare combination of wealth creation and macroeconomic stability gives luxury brands both volume and value. The Indian Luxury Consumer: Psychology and Preferences Indian luxury consumers today are characterized by their mindset rather than just their income. Millennials and Gen Z comprise almost 70% of India's population. They are digitally active, globally conscious, and look for brands that reflect who they are rather than just convey status (McKinsey, 2024). In addition to demanding individualized experiences, ethical values, and digital convenience, the aspirational middle class is moving from premium to luxury goods. For Indian consumers, luxury is becoming more and more entwined with emotional storytelling and cultural relevance. A Gucci handbag must now appeal to local aesthetics in addition to European craftsmanship, whether through colour schemes, advertising narratives, or partnerships with Indian celebrities. Strategic Entry: Why Partnerships Matter Local partnerships are essential in India due to its complicated regulatory framework, retail FDI restrictions, and fragmented consumer segments, in contrast to China, which permits direct market access. Businesses such as ABFRL and Reliance Brands Ltd. serve as logistical, cultural, and regulatory bridges for foreign competitors. For example, Balenciaga and Reliance's collaboration provides deep insights into Indian fashion behaviour in addition to retail space in upscale locations (Vogue Business, 2022). In order to ensure operational scalability without sacrificing brand identity, Valentino has partnered with ABFRL, which reflects a hybrid model of local distribution with global control (Business Standard, 2022). Further enhancing these collaborations beyond retail growth, Indian conglomerates are now co-investing in luxury tech innovation and customer relationship management (CRM) platforms. Retail Infrastructure: More Than Just Flagships The infrastructure for luxury retail in India is rapidly diversifying. Luxury brands can be found wherever customers travel, shop, and mingle, from high-end malls like Phoenix Palladium to airport boutiques at the Mumbai and Delhi T3 terminals. The transition from static flagship stores to dynamic experience zones is more important. The goal of Galeries Lafayette, which is scheduled to open by 2025, is to establish a lifestyle ecosystem centered around luxury by providing art galleries, café lounges, trunk shows, and multi-brand offerings in addition to acting as cultural hubs (Financial Express, 2023). This change is in line with consumer preferences: according to CBRE (2023), 74% of Indian luxury consumers favour brands that provide carefully chosen, immersive retail experiences over traditional product-only stores. The Power of Localization and Cultural Integration India's cultural diversity is a key characteristic of its luxury market. Here, brands that uphold international renown while honouring regional customs thrive. Consider Dior's pre-fall 2023 show in Mumbai, which was widely broadcast and featured both international silhouettes and Indian artisans and embroiderers (Vogue India, 2023). Consider Gucci's 2024 Diwali campaign, which featured Bollywood stars and combined festive Indian design sensibilities with Italian elegance. These localized brand-building techniques, which integrate luxury labels into Indian cultural consciousness, go beyond simple marketing techniques. Digital Ecosystem and Omnichannel Strategy India's luxury consumers are mobile-first and tech-savvy. More than 830 million Indians have internet access as of 2025, and 75% of them shop on smartphones (TRAI, 2024). The new omnichannel normal includes social commerce, live-streamed fashion shows, personal shopping via WhatsApp, and virtual try-ons driven by artificial intelligence. Global brands are now able to reach consumers in Tier 2 and Tier 3 cities that have historically been shut out of luxury retail, thanks to the rapid expansion of luxury e-commerce platforms like Tata CLiQ Luxury and Ajio Luxe. Furthermore, influencer partnerships, data-driven personalization, and digital CRM systems have become the cornerstones of luxury brand management in India, providing a physical solution to a geographically and culturally heterogeneous audience. Operational and Management Challenges There are challenges in the Indian luxury market despite the enormous opportunities. According to the Retailers Association of India (2024), import duties, which range from 30 to 50%, keep prices high and promote buying from black markets or international travel. High real estate prices lower profitability in desirable locations like Mumbai's BKC or Delhi's Emporio. Last-mile luxury delivery is difficult because of ongoing logistics and warehousing issues outside of major cities. Lastly, the quality of the customer experience is impacted by the lack of talent in luxury retail, particularly at the store level (stylists, consultants, and visual merchandisers). Fashion managers must thus strike a balance between cost-effectiveness and brand integrity, global standards and local expectations, and exclusivity and accessibility. Conclusion India is at the forefront of the luxury playbook in 2025 rather than being on the sidelines. India is a market that is uniquely positioned for international luxury brands due to the combination of economic growth, cultural fluidity, youthful aspiration, and digital innovation. Fashion managers face the challenge of how to enter India in a meaningful, sustainable, and strategic way rather than whether to do so at all. Luxury success in India will be determined by a brand's story, experience, and level of connection with its customers rather than just volume. India is a masterclass in the future of global luxury for fashion management professionals, not just a market. References
Fashion Value Chain
02-05-2025
- Business
- Fashion Value Chain
Indian Textile Industry's Management Model Response to US Tariffs
Ms. Ananya Tiwari, Post-Graduate Academic Scholar in Fashion Management, National Institute of Fashion Technology, Ministry of Textiles, Daman campus Dr Vidhu Sekhar P, Assistant Professor, Department of Fashion Management Studies, National Institute of Fashion Technology, Ministry of Textiles, Daman campus Abstract With the impending 2025 U.S. tariffs changing the dynamics of international trade, the Indian textile sector is once again in the news. To protect their companies, 3 significant Indian textile companies—Welspun Living, Gokaldas Exports, and Faze Three—are acting proactively and dynamically. This article examines the practical applications of textbook management models, such as Porter's Five Forces, Ansoff Matrix, and Risk Management, by these companies. This case provides a unique real-time illustration of operational resilience and strategic agility for management students. It sheds light on how companies apply theoretical frameworks to turn outside threats into expansion prospects. Keywords Strategic Management, Indian Textile Industry, Porter's Five Forces, Ansoff Matrix, Risk Mitigation, Global Trade, Textile Exports, Business Strategy. Introduction The fortunes of the textile industry have always been significantly influenced by global trade policies. Indian textile exporters face a more complicated environment as the United States increases tariffs in 2025. As a result, businesses are showing how fundamental management concepts, which are usually taught in business schools, have real-world applications. This article demonstrates how strategic models and frameworks can be useful tools for success and survival using the examples of five top businesses. Application of Porter's Five Forces Understanding the competitive forces operating within an industry is made easier with the aid of Michael Porter's Five Forces model. This model is being strategically used by Indian textile companies to reconsider their stances and lessen pressure. For example, by purchasing BRFL Textiles, Gokaldas Exports addressed supplier power, a significant issue in manufacturing. They have direct control over material inputs thanks to vertical integration, which guarantees stability in both cost and quality. Similarly, by setting up a manufacturing facility in the United States, Welspun Living diminished the purchasing power of consumers. Welspun improves margins by negotiating directly with major U.S. retailers and avoiding traditional importers by relocating closer to its major markets. Furthermore, by concentrating on the niche home textiles market, Faze Three has set itself apart and successfully reduced the threat of substitutes. Premium and specialized products encourage brand loyalty and lessen the likelihood that customers will switch. The following table neatly summarizes the strategic responses mapped to Porter's Five Forces: Company Strategic Move Porter's Force Addressed Gokaldas Exports Investment in BRFL Textiles (fabric sourcing) Lower supplier power Welspun Living U.S. manufacturing unit Lower buyer power Faze Three Focus on niche home textiles Lower substitute threat These examples show how a theoretical framework can help direct how businesses react to outside market forces. Application of Ansoff Matrix Strategies Another traditional framework that aids businesses in choosing between diversification, product development, market expansion, and market penetration is the Ansoff Matrix. These tactics are being used selectively by Indian textile exporters according to their market opportunities and competitive advantages. By entering new geographic markets like the U.S. and Europe, Indo Count and K.P.R. Mill are utilizing market development strategies. Their objective is to present current product lines—mainly clothing and bed linens—to new markets. Faze Three, meanwhile, is notable for its approach to product development. In a crowded market, it maintains the novelty and appeal of its product offerings by concentrating on cutting-edge home textile solutions, such as sustainable and functional fabrics. Welspun Living uses related diversification to combine strategies. By introducing complementary goods like pillows, it maximizes cross-selling opportunities while simultaneously strengthening its current market presence and catering to new consumer demands. This strategic mapping can be observed here: Growth Strategy Company Action Market Development Indo Count, K.P.R. Mill Expand in U.S. and Europe Product Development Faze Three Innovate niche textiles Related Diversification Welspun Living New products (pillows) in new geographies These businesses show an organized approach to growth in the face of uncertainty by adhering to Ansoff's guidelines. Focus on Risk Management With growing geopolitical tensions and protectionist policies, risk management has become a key component of textile companies' strategies. To protect their operations, businesses are identifying critical risks and constructing tactical hedges. An excellent illustration of operational risk mitigation is Welspun Living's decision to build a factory in the United States. The company safeguards itself against future tariff shocks and logistical disruptions by manufacturing within the borders of the United States. In order to improve its financial stability and withstand economic shocks, credit tightening, and rising interest rates, the company has simultaneously proactively concentrated on debt reduction. Gokaldas Exports is using vertical integration to reduce supply chain risks. By protecting its raw material sources, Gokaldas lessens its dependency on erratic outside vendors, guaranteeing availability and cost containment. The actions of these firms in response to risk factors can be captured as follows: External Factor Company Strategic Response US Tariffs Welspun Living Set up a U.S. factory to mitigate trade barriers Reduced debt to strengthen financial stability Gokaldas Exports Secured supply chain through vertical integration Even in the face of difficult macroeconomic circumstances, these risk responses guarantee long-term survival and establish a sustainable competitive advantage. Conclusion The significance of strategic thinking based on academic models is demonstrated by the example of Indian textile companies getting ready for the 2025 U.S. tariffs. Businesses are demonstrating incredible agility and foresight through the practical application of the Ansoff Matrix, Porter's Five Forces, and risk management techniques. These examples provide real-world case studies of how theoretical knowledge must change to meet changing real-world business challenges for management students and aspiring industry leaders. In today's unstable global marketplace, the capacity to foresee, innovate, and manage risk is not only a competitive advantage but also a need. As a result, the Indian textile industry, which is frequently thought of as traditional and labour-intensive, is becoming a dynamic arena for contemporary strategic management techniques. References
