Ajio Luxe and Tata CliQ Luxury in Shaping India’s Luxury e-commerce – A Case Study

Our global marketplace has evolved drastically post-pandemic. Luring customers to immersive experiences on digital platforms and offering brands an infinite digital space to unfold for business growth. Embracing digital transformation, the luxury sector in India is innovating a robust e-commerce sector to capture its diverse audience.

The journey to establishing disruptive luxury e-commerce models in India is powered by a paradigm shift in consumer behaviour patterns. Phygitial runway shows, luxury art and fashion NFTs, immersive luxury e-commerce space, global luxury atelier partnerships, and seamless integration of social commerce are examples of the digital transformation of luxury in India.

The modern-day luxury e-commerce landscape is packed with unparalleled experiences. Leveraging technology, exploring virtual luxury, and forging one-of-its-kind alliances, it’s unfolding a new era of luxury experiences. This has opened a world of opportunities for India’s leading business conglomerates which are in a battle to woo the luxury consumer in the country.

A few Indian business giants are investing heavily to capture India’s wealthy consumer base. Utilizing their existing fashion business to expand into the opulent luxury e-commerce segment. Reliance’s Ajio Luxe and Tata’s Tata CliQ Luxury are two leading Indian brands in the luxury e-commerce segment in India. Shaping India’s luxury e-commerce experiences by onboarding premium and luxury brands.

Factors impacting the growth of luxury e-commerce in India

Invest India reports ‘With over 800 Mn users, India is the 2nd largest internet market in the world with 125.94 Lakh Cr UPI transactions in 2022. Close to 100% of pin codes in India have seen e-commerce adoption. More than 60% of transactions and orders in India come from tier two cities and smaller towns.’

Credit Suisse Global Wealth Report 2022 reports that ‘the number of millionaires in India is expected to double from 7,96,000 in 2021 to 1.6 million in 2026.’

These quotes offer us an insight into the growing wealth in India and the widespread acceptance of e-commerce across diverse consumer groups. However, what truly drives the growth of luxury e-commerce in India is:

a. the growing buying power of the Indian middle class and the educated and well-travelled millennial population,
b. change in consumer demands for hassle-free, seamless, and contactless shopping experiences.
c. rise and widespread acceptance of digital infrastructure like virtual try-on.

The leading players of luxury e-commerce in India

Ajioluxe and Tata CliQ Luxury are at the forefront of shaping luxury e-commerce experiences in India. The investments by Reliance and Tata respectively narrate the story of how luxury e-commerce requires large investment and patience to set the tone in the market. An indulgence that small luxury business brands cannot afford. Let’s understand how the leading luxury e-commerce brands are setting themselves apart.

Ajioluxe, Reliance initiative

Ajioluxe is a Reliance Retail initiative, that caters to luxury products. Bringing a multi-brand luxury e-shopping experience to India. Offering exclusive international luxury and premium brands. Like Kenzo, Y3, Marc Jacobs, etc.

Ajioluxe launched in 2020 to take the best advantage of rising luxury e-commerce demands. It’s an expansion of Ajio online store launched in 2016.

a. USP: Bringing global luxury brands to India under exclusive partnerships for capsule collections, limited editions, and exclusively on Ajioluxe offerings.
b. Product offerings: Ajioluxe retails fashion and accessories for men and women. Along with a charming range of Home Décor and Beauty products.
c. Global luxury brands: Zimmerman, Kate Spade, Bottega Veneta, Paul Smith, Prada, DKNY, Kenzo, and Coach are some examples of brands sold on Ajioluxe.

In the e-commerce luxury sector, AjioLuxe has defined its market by making luxury fashion accessible to multiple consumer groups. Its wide range of Indian couturier and ethnic luxury, premium brands, and ultra-luxury offerings resonate with an extensive Indian demographic. Catering to affluent Indian consumers who are becoming global citizens yet grounded in their tradition and culture, AjioLuxe is an inclusive luxury online marketplace. An amalgamation of affordable luxury and exclusive global brand collaborations.

TataCliQ Luxury, Tata initiative

An initiative under the Tata group, Tata CliQ Luxury is a premium and luxury destination for fashion lovers. It’s a multi-category e-commerce brand that offers 4100+ premium and luxury brands in India across 100+ towns and cities.

a. USP: Exclusive collection partnerships with ultra-luxury watch brands like Cartier, Piaget, etc.
b. Product offerings: Houses a range of apparel, accessories, home decor, eyewear, gourmet food section, fragrances, beauty, and most coveted luxury watches.
c. Global luxury brands: Tata CliQ Luxury has two segregated segments:
one – with brands that are a bridge to luxury like Coach, Furla, Tumi, G-Star, Michael Kors, etc, and two – with opulent luxury ateliers like Cartier, Viktor&Rolf, Burberry, Fendi Timepieces, etc.

Tata CliQ Luxury is redefining its luxury online platform with unique initiatives like:

a. Circular packaging programme
b. Instant expert assistance on high-value purchases
c. A Featured Store categorization

What can we learn from Tata CliQ and Ajio Luxe?

As pioneers of the Indian luxury e-commerce market segment selling multiple global luxury brands, Tata CliQ Luxury and Ajio Luxe offer significant insights to entrepreneurs and luxury management professionals.

1. Sustainability in luxury

Many luxury consumers are conscious of a brand’s sustainable initiatives. Demanding transparent supply chains and ethical practices in the luxury world. Luxury management professionals can learn from Tata CliQ Luxury’s Circular packaging programme to build one-of-its-kind sustainable initiatives. One that engages as well as informs consumers on the brand’s sustainable programmes.

2. Exclusivity in luxury

Both AjioLuxe and Tata CliQ Luxury have built their e-commerce platform on the power of exclusive collaborations with global luxury brands. Whether it’s an exclusive season launch, collection launch, or brand launch – both platforms thrive on exclusivity. Presenting a case study for luxury management professionals and businesses on how exclusivity is a powerful tool to promote luxury products in India.

3. Category expansion in online luxury

Targeting both a conscious and luxury consumer, Tata CliQ Luxury recently launched its Re-loved market segment. Bringing pre-loved luxury watches to its platform. It sells iconic brands like Rolex, Omega, Tag Heuer, Breitling, and Tudor under its Reloved at Tata CliQ Luxury. Luxury professionals and start-ups must build unique strategic plans to capture the pre-loved luxury market segment that is booming globally.

4. On-demand customer service

Another significant learning from Tata CliQ Luxury initiative is their on-demand luxury expert services. To answer the nuanced queries of luxury buyers, the brand offers the expertise of its luxury care representatives. This service is applicable for high-end timepieces and fine jewellery collections above the range of INR 1,00,000.

5. Building creative storytelling

AjioLuxe leads a fine creative storytelling initiative on its platform. It has a section called The Edit that offers editorial content on the latest in luxury fashion and brand offerings on its website. Another creative output on Ajio Luxe’s website is its Luxury Shopping Festival to cater to online luxury consumers, with a curated collection edit for the luxury festival.

From preloved categories to exclusive partnerships with Indian couture and global designers, AjioLuxe and Tata CliQ Luxury are appealing to the diverse Indian consumer demands. Both luxury e-commerce brands are building a one-stop online shop that integrates global and Indian luxury names under one roof. With a key focus on product diversification and partnership strategy.

These luxury e-commerce giants in India are unveiling a central playbook for management professionals. One that offers key learnings for small luxury businesses and entrepreneurs. Advocating for elevating luxury shopping experiences online while embracing sustainability, inclusivity, and technology advancements and changing consumer dynamics.

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