India’s luxury boom is shifting beyond elite metros - Tier-2 and Tier-3 cities are becoming the new frontier for high-end brands. These smaller cities now generate a significant share of luxury sales, driven by rising disposable incomes and aspirational buying behavior. In fact, luxury retail there contributes nearly 35% of overall sales, with clientele increasingly shifting toward affluent homemakers, entrepreneurs, and ‘Henry’ (High Earners, Not Yet Rich) professionals.

E-commerce has played a pivotal role - platforms like Tata CLIQ Luxury report that more than 55% of their revenue comes from non-metro buyers, especially for pre-owned watches, handbags, and fashion. Brands are also extending their physical presence: Swiss watchmaker Breitling operates in multiple Tier-2 locations and plans significant expansion, while Mercedes plans 20 new dealerships outside major cities. Luxury hospitality is also growing, as chains like Triton, Tatas, ITC, and Oberoi expand premium hotel offerings in smaller cities.

A potent cocktail of wealth accumulation, improved connectivity, digital accessibility, and changing tastes is redefining India’s luxury landscape—making non-metro cities indispensable to global luxury strategies.