Mumbai: A new report by Accenture has highlighted a growing shift in consumer behavior within the luxury sector, revealing that 73% of Indian luxury shoppers are willing to switch brands, signaling weakening loyalty despite the category’s overall resilience.
Titled “Luxe Eternal: The Customer Edit,” the report underscores a disconnect between how luxury brands perceive themselves and how they are viewed by modern consumers, particularly younger and next-generation buyers. While segments such as beauty, jewelry, travel, wellness, and fine dining continue to show selective growth, the broader luxury market is facing underlying challenges.
Globally, the active luxury customer base has declined from approximately 400 million in 2022 to around 340 million by 2025, reflecting a loss of nearly 60 million consumers. This trend points to a widening gap between rising global wealth and participation in the luxury market.
In India, the report highlights a clear erosion of brand loyalty. Around 66% of consumers believe luxury brands have become more profit-driven than aspirational, while 50% feel that brand expressions are losing distinctiveness and inspiration.
The findings also reveal a more nuanced and fragmented luxury consumer landscape in India, where emotional and experiential factors play a critical role in brand preference. Nearly 47% of consumers value brands that make them feel special and unique, while 41% prioritize exceptional quality and craftsmanship. Additionally, 40% appreciate evolving aesthetics, and 39% seek alignment with personal identity.
Experience-driven engagement is emerging as a key differentiator. Around 83% of Indian luxury consumers say professional and knowledgeable staff significantly influence their engagement, while 80% highlight attention to detail as a crucial factor. Heritage continues to matter for 73% of consumers, while technology is gaining importance, with 68% valuing seamless resale experiences and 62% open to using technology for personalization and purchase decisions.
Exclusivity remains central to luxury appeal, with 80% of respondents valuing belonging to an exclusive community. Access to limited editions, private events, and premium experiences also plays a significant role in shaping brand relationships.
Amal Benichou, Accenture’s global luxury lead, said, “Keeping up with the customer, while achieving high desirability across all generations, spending tiers and geographic markets remains a major hurdle for luxury brands. While luxury may look resilient on the surface, customer desire is quietly fragmenting, and heritage and exclusivity is no longer enough to secure loyalty. In response, luxury Maisons need a dual focus: elevate brand and relationship building, while not ignoring the “behind-the-scenes” operating system to turn desirability into resonance – investing in the right infrastructure and practices for agility and innovation, data and AI for differentiation — to deliver a strong, consistent identity across the entire value chain.”
The report concludes that as luxury consumers evolve, brands will need to move beyond traditional markers of heritage and exclusivity, focusing instead on deeper personalization, authentic engagement, and technology-driven experiences to sustain growth and relevance.
