A few years ago, if you told someone that India would become a major market for luxury SUVs, ₹2,000 sneakers, and gourmet chocolates, they might have laughed. But today, it’s happening. Premiumisation is no longer just an urban elite trend—it’s spreading across middle-class households, Tier 2 and 3 cities, and even traditionally price-sensitive categories.

The Shift: From Value-Seeking to Quality-Seeking

For decades, the Indian consumer was all about “kitna deti hai?”—whether it was mileage in cars, price per kilo for groceries, or buy-one-get-one-free offers. But things are changing.

Take the automobile market. In the first half of 2024, nearly 48% of all cars sold in India were priced above ₹10 lakh. Just a decade ago, entry-level hatchbacks dominated the roads. Today, the best-selling cars include SUVs from Mahindra and Hyundai, with premium trims selling faster than base models.

What’s driving this shift?

1. The Rise of India’s Affluent Class

The top 10% of Indian households now account for nearly 40% of total consumer spending, and this segment is growing fast. According to industry estimates, the number of high-income households (earning ₹30L+ annually) is expected to double by 2030.

More Indians now have the financial confidence to spend on quality over affordability.

Consider the smartphone industry. In 2015, ₹10,000 phones were the norm. Today, premium phones (₹30,000 and above) are the fastest-growing segment, with brands like Apple and Samsung experiencing record sales in India.

2. Indians Now Demand High-Quality Products

A decade ago, many Indian consumers would settle for “good enough” products if the price was right. Today, that mindset has changed. People want products that look good, feel good, and last longer.

• In the furniture industry, older generations were fine with laminated MDF, but today, consumers are demanding solid wood and premium craftsmanship.
• In apparel, fast fashion still thrives, but there’s growing demand for well-tailored, premium fabrics—evidenced by the rise of brands like Andamen, Bombay Shirt Company, and The Rare Rabbit.
• In electronics, the popularity of Dyson over cheap vacuum cleaners, Bose over generic headphones, and iPhones over budget phones shows a clear shift toward long-term value over short-term savings.

India’s growing affluence isn’t just about spending more—it’s about expecting world-class quality in everything.

3. The Aspiration Economy: Indians Want the Best

India is no longer just a consumer market—it’s an aspirational market. Young Indians want to wear sneakers that make a statement (Air Jordans over Bata), drink coffee that tells a story (Blue Tokai over instant coffee), and drive a car that reflects their success (MG Hector over an Alto).

Even in food, the trend is clear. Gourmet chocolates, organic groceries, and craft beverages are seeing unprecedented demand. If you’ve walked into a supermarket lately, you’ll notice that ₹250 almond butter and ₹600 artisanal cheeses now have shelf space alongside Amul butter and Britannia cheese slices.

4. The Rise of Indian Luxury Brands & the Pride in Made-in-India

Premiumisation isn’t just about foreign brands dominating the market—it’s also about homegrown Indian brands stepping up. And for the first time in decades, Indians are taking pride in buying Indian brands.

• Fashion: Labels like Jaywalking and Bhaane are making Indian streetwear aspirational, proving you don’t need to shop Zara or Off-White to be stylish.
• Luxury Beauty: Brands like Forest Essentials and Kama Ayurveda have built a cult following, proving that Indian formulations can be as premium as any global name.
• High-End Lifestyle Goods: Once, buying a luxury bag meant Gucci or LV. Today, brands like Nappa Dori and Mokobara are changing that with beautifully crafted, Made-in-India premium products.

Indians are no longer obsessed with just foreign labels. They now value premium Indian craftsmanship, heritage, and innovation—and are willing to pay for it.

5. Experience Over Price: Why Consumers Are Ready to Pay More

It’s not just about what people are buying—it’s about why they’re buying. Indians are prioritizing experience and self-expression over just price.

• Travel: More Indians are choosing boutique homestays and premium resorts over budget hotels.
• Dining: Michelin-starred restaurants are opening in India, and high-end cafés are packed even on weekdays.
• Wellness: The demand for premium skincare, fitness memberships, and organic food is rising.

The days of “cheapest is best” are over. Consumers are choosing brands that align with their identity, values, and aspirations.

What This Means for Businesses

If you’re a business owner, marketer, or entrepreneur, this trend presents a massive opportunity.

✅ Premiumisation = Higher Margins: Consumers are ready to pay more for better quality, which means businesses can increase profitability.

✅ Brand Loyalty & Differentiation: A well-crafted premium brand builds stronger loyalty and word-of-mouth marketing.

✅ Global Competitive Edge: Indian brands that tap into premiumisation can compete on an international level.

Premiumisation is here to stay. And as India’s economic growth continues, it will only accelerate. The brands that win will be those that understand their consumers’ evolving aspirations—not just their budgets.

The question is: Are you building for this future? 🚀

At Entangled, this is what we specialise in. Get on call with us to explore synergies.