Luxury brands are looking at driving phygital experiences: Mohua Das Gupta

The start of a new year is seen as bringing in new operational efficiencies, stronger strategies, a far greater emphasis on building deep bonds with various stakeholders and consumers. In keeping with the current market ecosystem, technology and a human approach are seen as going hand in hand.

As 2023 kicks off, Adgully has approached key industry leaders to Crystal Gaze into 2023, as part of our annual Trending Now series, to highlight the major trends and developments that they see dominating the industry in the year ahead.

Mohua Das Gupta, Head - Marketing, Tata CLiQ Luxury, speaks about the evolution in the luxury sector, changes in the behaviour of luxury shoppers, factor driving growth of the luxury sector amid a slowdown, and more.

Key trends dominating the luxury sector 2023

Luxury was often associated with indulgence and the enjoyment of products that required significant investment. However, consumer behaviour and purchasing patterns have radically transformed, and, as a result, the notion of luxury has evolved.

While sustainability and conscious consumption are themes that will continue to dominate, here are some of the other trends that will influence the industry:

Shopping online for luxury: With the adoption of digital transactions by brands across industries, luxury brands have also realised the potential of e-commerce given the reach and accessibility it offers. Luxury shoppers have now embraced this mode of shopping as they find it convenient and are able to shop for luxury brands across a variety of categories from the comfort of their homes. The online luxury market will continue to grow and become a significant channel of sale for brands.

New consumer cohorts: While millennials and older consumer cohorts have long purchased luxury goods, the industry is now witnessing a new cohort consuming luxury, namely Gen Z. This cohort is going to become an important audience for luxury brands going forward, as not only will they contribute to the growth of the industry, but they are also actively shaping it by influencing trends.

Smaller cities driving growth: In India, non-metros are driving growth in the luxury sector alongside metros. Several factors, including growing Internet penetration, higher spending power, more accessibility, the convenience of shopping as luxury brands go online, ease of delivery, and so on, have encouraged the contribution from T2-T4 markets. Tata CLiQ Luxury gets about 40% of its revenue from non-metro markets.

Emergence of new categories in luxury: While the fashion and lifestyle segment in luxury will continue to grow, categories like home and gourmet will also witness growth.

Luxury experiences: The experience is the essence of luxury. Luxury brands will look at driving phygital experiences and also explore sensory innovations like AR, VR, and customised experiences to bring the brand to life. The kind of shopping experiences luxury brands offer will also continue to influence the relationships they are able to forge with their customers, thereby strengthening customer loyalty.

Major expectations

Luxury is a resilient industry. Following the pandemic-related lockdowns, the industry witnessed a 100% recovery. Despite the current retail inflation and market slowdown, the luxury industry is expected to grow at a healthy CAGR. Another factor boosting the industry’s growth is an increase in the spending power of luxury consumers, as well as the rise of newer consumer cohorts that buy luxury. Furthermore, the introduction of new brands as well as increased exposure and awareness have aided in the growth of this market. Given how various factors such as increased internet penetration, economic development, rising aspirations, and so on have contributed to the industry’s growth in the last 2-3 years, from a long-term perspective as well, these factors will continue to fuel the growth.

The big digital developments

There has been a lot of digital innovation in recent years, and some of it may start to become mainstream this year. Some of the significant advancements that are being discussed are Metaverse, Web 3, and, most recently, ChatGPT. At Tata CLiQ Luxury, we will experiment with new formats, user personalisation and augmented reality (AR), in addition to scaling our always-on campaigns and current platforms, to enhance the consumer experience.


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