Mastering Omnichannel Strategy for Sustainable Luxury Growth in India

India’s luxury goods market, valued at $8–9 billion with a 6.37–10% CAGR and projected to reach $17.94 billion by 2033, thrives across fashion, fine jewellery, watches, automobiles, fragrances, gourmet foods, private aviation, and real estate. The value chain spans global luxury houses, authorised distributors, mono-brand stores, multi-brand outlets, e-commerce platforms, stylists, logistics partners, and regulators like the Directorate General of Foreign Trade (DGFT), Bureau of Indian Standards (BIS), Reserve Bank of India (RBI), and Customs Service.

Importantly, rising UHNI/HNI wealth, Tier-2 affluence, Gen Z’s demand for seamless digital integration, and the rise of hybrid commerce drive the need for a robust luxury omnichannel strategy. Therefore, senior leaders must address growth challenges to ensure channel consistency and deliver cohesive customer experiences. This article outlines how brands can leverage an omnichannel strategy to achieve sustainable growth in India’s dynamic luxury market.

Overcoming Growth Challenges with Omnichannel Strategy

• As of July 2025, key developments continue to shape the luxury omnichannel strategy landscape:

1. To begin with, Customs Duty Relaxation via the May 2025 India–UK FTA and ongoing EU–India FTA negotiations reduced duties on select luxury goods, thereby enabling investment in omnichannel infrastructure.
2. Additionally, Luxury Retail Expansion plans for 15+ new luxury malls in FY26 (in metros and Tier-2 cities) create opportunities for integrated physical-digital experiences.
3. Moreover, an NRI Investment Surge driven by relaxed FEMA repatriation norms has boosted NRI demand, necessitating channel consistency across global and local platforms.
4. At the same time, Digital Platform Growth sees brands launching .in platforms with AI, AR, and luxury CRM tools to enhance engagement.
5. Meanwhile, BIS Traceability Standards on luxury item provenance—like gem hallmarking with HUID—help build trust in omnichannel ecosystems.
6. Finally, Budget 2025 Updates on GST slabs, customs processes, and RBI digital payment norms simplify cross-channel transactions.

Collectively, these trends highlight the need for an integrated omnichannel strategy to manage growth challenges and ensure channel consistency.

1. Core Challenges in Scaling Omnichannel Strategy

• Despite the potential, luxury brands face significant challenges in scaling omnichannel strategy:

1. Firstly, Inconsistent Brand Storytelling across touchpoints weakens channel consistency and brand identity.
2. Secondly, Legacy IT Systems hamper real-time inventory visibility and CRM integration, disrupting seamless experiences.
3. Moreover, Poor Data Integration across silos impairs holistic customer journey mapping, thereby weakening luxury omnichannel effectiveness.
4. In addition, High Costs of Technology (e.g., AR, virtual showrooms) place strain on CAPEX budgets.
5. Furthermore, Operational Complexity in aligning returns, logistics, and personalisation across channels remains daunting.
6. Lastly, Cultural Mismatches in design, service, and UI/UX across regions complicate standardisation and consistency.

As a result, these issues demand a cross-functional approach to scale effectively.

2. Strategic Implications Using a Hybrid Consulting Lens

• GTM / Market Strategy

To address these growth challenges, brands must take a hybrid consulting approach:

1. Integrated Omnichannel Strategy: Unify CRM, inventory, and personalisation across digital and physical channels to maintain channel consistency.
2. Click-and-Consult Services: For instance, concierge pilots in metros can bridge online and in-store touchpoints.
3. AR-Enhanced Showrooming: Use AR try-ons and digital appointment tools to deepen customer interaction.

• M&A / Investment Strategy

1. Omnichannel Tech Platforms: Invest in tech enablers that specialise in unified CRM and inventory to streamline cross-channel operations.
2. Last-Mile Innovation: To strengthen channel consistency, brands should therefore collaborate with luxury tech enablers. Moreover, by doing so, they ensure white-glove delivery and in-home try-ons that reinforce the luxury experience.

• Turnaround / Repositioning Strategy

1. Digital UX Revamp: Modernise digital interfaces using omnichannel analytics to meet customer expectations.
2. Phygital Staff Training: Retrain front-line teams to manage integrated interactions both in-store and online.

• Startup / Innovation Consulting

1. Immersive Omnichannel Startups: Support AR commerce, tokenised rewards, and WhatsApp luxury services to innovate fast.
2. Modular Tech Stacks: Furthermore, encourage scalable tech that can adapt across geographies and service types.

• Organisation & Talent Advisory

1. Channel-Consistent Training: Standardise luxury service training to ensure unified delivery across formats.
2. Personalised Clienteling: Use CRM analytics to build customised experiences that span digital and in-store touchpoints.

• Legal & Regulatory Strategy

1. Data Compliance: In line with the Digital Personal Data Protection Act, 2023, ensure lawful data handling across channels.
2. BIS and Pricing Alignment: Align digital disclosures and warranty terms with BIS and consumer norms for regulatory trust.

• Technology Enablement

1. AI for Real-Time Mapping: Deploy AI for inventory and preference mapping, supporting fast decision-making.
2. Blockchain for Provenance: Equally important, use blockchain for authenticity assurance across channels.

Illustrative Examples

• A French fragrance brand unified its e-store and boutiques under one CRM and pricing engine. Consequently, it achieved a 2.5x cross-sell increase using a luxury omnichannel strategy.
• A luxury watchmaker introduced video concierge try-ons linked to retail slots. As a result, HNI engagement rose and appointment drop-offs fell by 35%.

Conclusion

Mastering an omnichannel strategy is essential for sustainable luxury growth in India. By tackling legacy systems, inconsistent messaging, and regional disparities through an integrated hybrid consulting model, brands can meet evolving customer expectations. Thus, channel consistency becomes the backbone of luxury omnichannel strategy. With AI, AR, compliant frameworks, and talent upskilling, leaders can ensure luxury remains seamless, personalised, and trusted across every touchpoint.

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