The luxury market in India has traditionally been seen as a men’s market. For example, in contrast to many other emerging markets, the apparel market is still dominated by men’s wear. Social norms, customs and practices ingrained in Indian society influence consumer behavior. Indeed, in a 2007 McKinsey study, half the respondents said their husbands had a major influence on which apparel stores they visited. Interestingly, this is compared to just three per cent in Brazil and eight per cent in China. The common held view is that it is the man who pulls the strings in India. This phenomenon has essentially created a gender gap within the Indian luxury landscape.

However, the dynamics of the Indian female economy are now challenging luxury marketers to bridge this gap. A Boston Consulting Group (BCG) study reported that in 2010, 134 million working women in India earned $280 billion. It is interesting to note how the female economy is set to flourish. By 2020, BCG predicts that there will be 158 million working women and their earnings will have more than tripled to $900 billion. It is urban professional women who are increasingly making their own choices from marriage to careers and ultimately how to spend money. This has implications for luxury brands. The female consumer is using codes of consumption to express her identity while a luxury brand signifies a journey of personal progress. The scope for market growth is significant. For example; women’s lines account for over 25 per cent of Tag Heuer’s business which compares to a 40-50 per cent share in other markets in the region. This raises a simple question: are luxury brands ready to exploit this untapped potential?

International premium and luxury companies, particularly within the beauty and fashion sectors, are already investing to target the female segment. For example, Sephora recently opened a 3,200 square foot store in New Delhi that has introduced a selection of new luxury cosmetic brands to India. However, if luxury brands are to win over the female urban consumer, brands need to develop strategies that connect and engage with an evolving consumer sentiment. One example is the Diamond Trading Company (DTC) which developed an advertising campaign to promote bridal diamond jewellery. The TV advertisement shows a newly-wed bride wearing a diamond tiara who whispers in the groom’s ear: “You may now kiss the bride”. Within an Indian social context, this defining moment depicted in the commercial demonstrates that rituals and traditions are still of value, but resonates with the woman’s self-confidence and self-expression. It also showcases that modernity in India is not necessarily about Western values, but has its own meaning and interpretation.

The rise of the urban woman represents a new growth opportunity for luxury brands. The growing number of women in executive roles and managerial positions will drive future luxury consumption. Luxury brands, which do not historically have a strong association with women consumers, need to start engaging with this segment if they are to succeed in the long-term. For example, women are able to experience premium whisky brands thanks to the Spirit of Nero, an exclusive women’s whisky club that was launched by Le Meridian hotel in New Delhi. Luxury brands need to build a compelling brand story which will target the fairer gender. This will be imperative to win over the better half!