Consumer Preferences for Luxury Goods: Driving India’s Luxury M&A Success

India’s luxury goods market, valued at $8–9 billion with a 10–12% CAGR, is a dynamic hub for Luxury M&A. As consumer preferences for luxury goods shift toward sustainability, personalisation, and digital experiences, CXOs must align brand strategy to ensure M&A success. This article provides a strategic framework to navigate market trends and leverage consumer preferences for luxury goods in Luxury M&A, ensuring sustained brand value and growth.

Industry Overview & Context of Consumer Preferences for Luxury Goods

India’s luxury sector spans fashion, fine jewelry, luxury automobiles, real estate, fragrances, gourmet goods, and private aviation. It is driven by rising affluence and rapid urbanisation. The market is regulated by key bodies such as the Directorate General of Foreign Trade (DGFT), Bureau of Indian Standards (BIS), Customs, and the Reserve Bank of India (RBI). Luxury M&A activity is robust, featuring domestic consolidation, foreign acquisitions, and premium lifestyle brand buyouts. Consumer preferences for luxury goods are evolving. Buyers increasingly seek eco-conscious products and immersive brand experiences. These shifts are reshaping deal rationales and brand strategy. Alignment with market trends is now critical for long-term success.

1. 2025 Market Trends & Consumer Shifts

• As of June 2025, consumer preferences for luxury goods are evolving rapidly, driven by:

1. Gen Z and Millennial HNWIs: Prioritising authenticity, sustainability, and bespoke experiences over traditional luxury.
2. Aspirational Tier-2 Consumers: Seeking accessible luxury via omnichannel platforms, influenced by global market trends.
3. Sustainability: Demand for eco-friendly materials (e.g., vegan leather) and traceable supply chains.
4. Experience-Led Purchases: Preference for exclusive events and storytelling over mere ownership.
5. Personalisation and Gender-Fluidity: Desire for customised and unisex products.

These market trends compel acquirers to adapt brand strategy in Luxury M&A, ensuring portfolios resonate with modern consumer preferences for luxury goods.

2. Challenges from Evolving Consumer Preferences

• Shifting consumer preferences for luxury goods create significant challenges for Luxury M&A:

1. Brand Dilution Risks: Legacy brands misaligned with sustainability or digital trends risk eroding brand value.
2. Complex Integration: Acquired brands lacking ESG readiness or digital infrastructure complicate post-merger integration, requiring significant investment.
3. Valuation Volatility: Fluid consumer loyalty, tied to influencers or transient trends, can destabilise deal valuations, impacting brand strategy.

3. Strategic M&A Implications

• To align Luxury M&A with consumer preferences for luxury good, acquirers must:

1. Leverage Consumer Data in Due Diligence: Use AI-driven sentiment analysis and purchase pattern data to assess target alignment with consumer preferences for luxury good, ensuring accurate brand value evaluation.
2. Structure Earn-Outs Around Brand Strategy: Tie earn-outs to milestones like sustainable product launches or digital transformation, reflecting modern market trends.
3. Reshape Product Portfolios: Divest non-core assets and invest in eco-conscious or gender-neutral offerings to align with consumer preferences for luxury good.
4. DTC-First vs. Heritage Acquisitions: Acquiring digital-native direct-to-consumer (DTC) startups accelerates adaptation to digital trends, while heritage firms require modernisation to maintain brand value.

4. Consulting-Led Action Points

• Hybrid consulting expertise offers actionable steps to align Luxury M&A with consumer preferences for luxury good:

1. Legal-Compliance Checklists: Ensure IP and marketing claims align with sustainability and personalisation promises, complying with BIS and DGFT regulations. Secure digital assets like NFTs through robust contracts.
2. Technology Investments: Deploy AI-driven platforms (e.g., Brandwatch) for real-time sentiment and behavior tracking of HNWIs. Use CRM and product analytics to customise offerings based on consumer preferences for luxury good.
3. Rebranding Strategies: Post-acquisition, reposition brands to reflect modern identities (e.g., eco-conscious or gender-fluid messaging) while preserving heritage to enhance brand value.

Illustrative Case Studies

• Case 1: Verdant Vogue’s Sustainable Synergy

An Indian luxury conglomerate acquired “Verdant Vogue,” a vegan leather accessories brand, to target eco-conscious Gen Z and millennial HNWIs. Due diligence used AI-driven sentiment analysis to confirm demand for sustainable consumer preferences for luxury good. Post-merger, the conglomerate integrated Verdant Vogue’s supply chain, launching a co-branded vegan handbag line. This brand strategy increased sales by 20% and strengthened brand value in sustainability-focused markets.

• Case 2: Timeless Chronos’ Digital Rebirth

A Swiss heritage watchmaker, “Timeless Chronos,” was acquired by an Indian lifestyle firm to capture digital-savVy HNWIs. Post-acquisition, the brand launched NFT-linked timepieces with smart features, supported by a rebranding campaign emphasizing gender-fluid designs. This alignment with consumer preferences for luxury good boosted online engagement by 30%, reinforcing brand value and proving the power of market trends in Luxury M&A.

Conclusion

In India’s vibrant luxury market, consumer preferences for luxury goods are the linchpin of Luxury M&A success. By integrating market trends into due diligence, structuring deals to reflect modern preferences, and deploying legal, tech, and rebranding strategies, leaders can ensure acquisitions deliver enduring brand value. CXOs must leverage hybrid consulting to align financial, legal, and brand strategy decisions, positioning their firms to thrive in a consumer-driven landscape.

About LawCrust

LawCrust Global Consulting Ltd. delivers cutting-edge Hybrid Consulting Solutions in Management, Finance, Technology, and Legal Consulting to ambitious businesses worldwide. Recognised for our cross-functional expertise and hybrid consulting approach, we empower startups, SMEs, and enterprises to scale efficiently, innovate boldly, and navigate complexity with confidence. Our services span key areas such as Investment Banking, Fundraising, Mergers & Acquisitions, Private Placement, and Debt Restructuring & Transformation, positioning us as a strategic partner for growth and resilience. With an integrated consulting model, fixed-cost engagements, and a virtual delivery framework, we make business transformation accessible, agile, and impactful.

For expert legal help, please contact us:

• Email: inquiry@lawcrustbusiness.com