For the first time, Roman luxury jewellery brand Bvlgari is entering the Indian e-commerce market through an exclusive partnership with Tata CLiQ Luxury. This partnership underscores Bvlgari’s commitment to catering to an increasingly digital-savvy luxury clientele in India, a country experiencing one of the world’s fastest-growing luxury markets.
Bvlgari has already launched multiple India-inspired creations, such as the B.zero1 kada bracelet and the famous Bvlgari mangalsutra. To maximise the reach of Bvlgari’s high-end product offerings, the brand has now introduced a one-of-a-kind digital boutique in India.
What’s in it for Bvlgari?
Data reveals that India’s luxury market, valued at approximately 600 crore rupees, is set to experience a compound annual growth rate (CAGR) of over 10% in the next five years, with the online segment showing even more aggressive growth. Recognising this, Bvlgari’s partnership with Tata CLiQ Luxury is a strategic response to India’s booming e-luxury market, aimed at providing the digital-first luxury experience that India’s HNIs seek.
Tata Group’s fashion-focused multi-brand e-commerce platform, Tata CLiQ, follows the “phygital” (physical + digital) luxury model. By integrating machine learning and AI, it delivers highly personalised recommendations tailored for high-net-worth individuals (HNIs), fostering elevated engagement levels and strong customer loyalty among repeat shoppers.
What Data Says About Indian Luxury Consumers
Indian luxury consumers are increasingly seeking quality, heritage, and personalisation in their online experiences. According to Deloitte’s Global Powers of Luxury Goods 2023 report, 75% of Indian consumers in the luxury segment cite heritage and craftsmanship as primary factors in their purchasing decisions, closely followed by exclusive access and personalisation. Bvlgari’s presence on Tata CLiQ Luxury enables it to directly cater to these preferences through a digital platform that emphasises storytelling, heritage, and exclusive access.
A McKinsey survey on digital luxury consumption found that over 60% of luxury buyers in India are under 35, a group that spends more time online and is more willing to make big-ticket purchases digitally. This demographic’s digital habits present a unique opportunity for brands like Bvlgari to not only meet them where they are but also deliver an immersive, tailored luxury shopping experience online.
Luxury Goes Local: The Growing Influence of Tier 2 Cities
Bvlgari’s decision to join Tata CLiQ Luxury aligns with the broader trend of global luxury brands focusing on digital channels to tap into previously overlooked markets. According to a report from BCG and the Retailers Association of India, India’s e-commerce luxury market is expected to grow at a CAGR of 30% through 2025. Bvlgari’s physical footprint in India is limited to major metro cities, so a digital presence allows the brand to engage with HNIs in tier-2 and tier-3 cities, which comprise over 30% of the luxury consumer base, according to Bain & Company. This geographic expansion through e-commerce is anticipated to contribute up to 25% of Bvlgari’s sales in India by 2026.
This collaboration is strategically advantageous, as Tata CLiQ Luxury reports that 57% of its shoppers come from tier-2 cities, directly aligning with Bvlgari’s goal of strengthening its reach within India’s luxury e-commerce segment.
Bvlgari’s partnership with Tata CLiQ Luxury is a calculated move to lead in India’s luxury landscape, using data and customer insights to bridge heritage with high-tech solutions. By focusing on personalisation, reaching underserved geographies, and catering to a rapidly growing affluent demographic, Bvlgari is setting the stage for long-term digital success in India. Which global brand do you think will capitalise on India’s growing love for luxury shopping next?
This post was last modified on October 30, 2024 11:55 am