Indian luxury set for strong sales as West Asia war keeps affluent at home

Mint that their luxury brands, which also include home goods brand Jay Strongwater, have seen a clear uptick in the last one month."March emerged as the strongest it has been in the last seven years, and sales rose strongly after a brief dip in February, with overall conversion ratios improving," Kataria said. If the current geopolitical tensions persist and the West Asia war continues, more NRIs (non-resident Indians) could move back to India while residents defer overseas travel, boosting domestic luxury spending.

This could drive a strong sales growth in Q1 (April–June) of FY27, a period that's usually subdued for luxury sales, he added.Pushpa Bector, senior executive director and business head at DLF Retail, echoed Kataria. She said that with international travel likely to be deferred, there could be a gradual shift towards higher domestic consumption, which may support luxury demand locally.Across categories, however, the impact appears uneven depending on customer segments.

For luxury kids wear companies like Jacadi Paris in Mumbai and luxury gourmet brands such as Royce, March has turned out to be a strong month. Samir Gadhok, co-founder of Burgundy Brand Collective, which has brought the French brand Jacadi and Japanese chocolatier Royce, said the company’s UHNI (ultra-high-net-worth individual) patrons remain largely unaffected by the geopolitical situation and continue to shop as usual.Purchases by high-net-worth individuals (HNIs), however, have seen a dip, with some customers postponing consumption for the next few months.“Right now, it is business as usual for us, and the impact, if any, would be felt in the coming months,” he said.