Decoding Affluence
The concept of affluence in India is undergoing a profound transformation, moving beyond mere material wealth and conspicuous consumption. Three major shifts are reshaping India’s luxury landscape: the emergence of the financially powerful Gold Collar Class, the demand for truly sustainable luxury, and a renewed appreciation for indigenous handloom and crafts heritage.
When I first came across the term Gold Collar Class, I was as puzzled as most of you probably are. We’ve heard of white collar, blue collar, even pink collar. But a gold collar?
The phrase began to take shape in India’s cultural vocabulary after Reliance Brands Limited (RBL) published its Atlas of Affluence (AOA) case study in 2022. It was the first comprehensive, pan-India white paper to dissect consumer behaviour through the prism of luxury. What it uncovered was striking: India is not only consuming luxury, it is reshaping what luxury means.
Traditionally, Indian luxury buying was associated with legacy business families or wealth acquired through less traceable means. The AOA 2022 documents the emergence of a new, highly influential segment: the ‘Gold Collar Consumer’.
Who are these Gold Collar Consumers?
These are individuals who are highly skilled professionals distinguished by their high annual pay packages—some taking home eight-figure sums and above, previously unimaginable—and their tendency to pay for luxury goods or experiences through traceable methods like cheques, credit cards, or online bank transfers (even EMIs).
Shifting Consumption Patterns
This segment represents the first wealthy generation who did not necessarily inherit their luxury lifestyle, and thus view luxury as a symbol of their success and achievement. They are characterized by a willingness to spend and experiment, seeking high-value and discerning experiences.
Experience over Possessions: They focus heavily on experiences, such as travel and entertainment. For example, they look for curated travel to destinations, emphasizing experiences like spas and snorkeling.
Defining the Luxury Market: The existence of the Gold Collar consumer has fundamentally altered the Indian economy, fueling luxury businesses that might not have been viable a decade ago. Real estate (owning primary and holiday homes) is considered the leading category for them, followed by travel and consumer goods like watches, handbags, handcrafted sarees.
Digital Adoption: This group is tech-friendly and utilizes online channels for convenience. The ease of access provided by luxury e-commerce has been particularly helpful for Gold Collar consumers in Tier-2/3 cities, who historically had to travel internationally or to major metros to access luxury brands.
From Entitlement to Individualism: The old idea of luxury was simple: “I own because I can.” Owning a flashy car, a logo-heavy handbag, or an exclusive membership was enough to signal power and prestige. But the new affluent consumer thinks differently. Luxury is no longer about entitlement — it’s about expression. It’s a conscious choice to invest in objects and experiences that tell a personal story.
Legacy over Logos: This doesn’t mean logos and supercars have disappeared. They’re still very much part of the landscape. But they now compete with something more meaningful: brands that stand for values, legacy, and purpose. A logo may impress, but heritage craftsmanship, sustainable practices, and cultural authenticity win deeper loyalty.
The Mono-Brand Advantage: Another trend is the shift from multi-brand outlets to mono-brand stores. Consumers want authenticity, personalised service, customisation, and member-only benefits. Buying luxury is no longer a transaction; it’s an experience.
Beyond the Metros: For decades, India’s luxury consumption was concentrated in Mumbai, Delhi, and a few metro cities. But today, Tier-2 and Tier-3 cities like Jaipur, Kohima, Guwahati, Hospet, Panipat, Lucknow, Gorakhpur, Indore, Surat, and Coimbatore etc. are firmly on the luxury map. The appetite for fine living has spread far beyond the metros — and with it, the expectations from brands.
What the Gold Collar Class Buys
The AOA study revealed fascinating insights into consumer preferences:
- Fashion leads the way (27%), followed by Jewellery (20%) and Gadgets (19%).
- Watches, footwear, and handbags are also strong contenders, showing that luxury is not confined to one category but is a lifestyle.
Handcrafted is the New Luxury
This is where India has a unique advantage. The country’s artisanal traditions — weaving, embroidery, jewellery-making, leatherwork — are millennia old. Conglomerates have taken notice:
- RBL has invested in Manish Malhotra, Ritu Kumar, Anamika Khanna, Abu Jani-Sandeep Khosla, Rahul Mishra, and Abraham & Thakore.
- ABFRL has secured stakes in Sabyasachi, Tarun Tahiliani, and House of Masaba.
- 49% of consumers consider unique Indian traditional designs to be luxury.
- 47% believe handcrafted creations are luxury.
This consolidation and consumer behaviour signals that Indian luxury fashion is not a niche anymore; it’s becoming an industry powerhouse.
Implications for the Industry
The growing consciousness means luxury brands produced in India will need to align with the high standards of expectations that consumers associate with brands that resonate with their progressive values. Marks of excellence now include transparency in supply chains, attention to worker well-being, the use of sustainable materials, minimum carbon footprint, allowing easy origin identification, animal cruelty-free etc. The new affluent consumer is not just asking what a brand offers, but how it operates. The shift shows that for an evolved luxury market to thrive alongside affluence, it must affirm planet-first and pro-people values.
The new affluent consumer shows greater sensitivity and respect towards luxury goods sourced from small, lesser-known ateliers in India that skillfully pair local craft knowledge and handcrafting processes with luxury standards. This new appreciation echoes the historical definition of Indian luxury, which was the celebration of refined craftsmanship in muslins, saris woven with precious metals, and exquisite jewelry. All the evidence points towards the ascendance of India’s design and artisanal strength globally.
Global Collaboration and Transparency: International luxury labels are giving glowing credence to Indian embroidery houses. The global collaboration with Indian artisans might seem slower compared to Made-in-India iPhones, but the shift is here to stay. The collapse of garments manufacturing in Bangladesh will also have its own role to play.
Ethical Manufacturing: This shift supports transparency and accountability. Chanakya International, which collaborates with top luxury houses, ensures its atelier is SA8000 (social accountability) certified, ensuring global compliance for pay scales, working hours, and artisan welfare.
Women’s Empowerment: With better pay, more women are choosing to return to doing what they love (weaving, embroidery, sewing) than to work on random daily wage activities. Couturiers now emphasize that central to the idea of luxury is treating craftspeople as artists rather than faceless factory workers. This elevation of the artisan’s status ensures the preservation and evolution of India’s textile and craft heritage, securing a meaningful future for handloom artisans within the global ecology of affluence.
Nascent but Exciting Times
Perhaps one of the most telling examples comes from hospitality. When Oberoi Udaivilas opened in Udaipur two decades ago, only 8% of its guests were Indian, the rest were foreigners. By the time Kapil Chopra, then President of the Oberoi Group quit the company in 2018, the Indian occupancy was at 52%! Indian consumers are no longer just participants in global luxury—they are becoming its centre of gravity.
The Jio World Tower and the Nita Mukesh Ambani Cultural Centre in Mumbai are only the beginning. They’re baby steps towards creating ecosystems that serve the Gold Collar Class: India’s affluent, aspirational, and values-driven consumers.
India has the chance to do something remarkable— not just consume luxury but redefine it. With a rising affluent section and an unmatched artisanal heritage, the country could very well emerge as a global fashion capital in the coming decades. And our artisanal communities are not just cultural custodians but could be the backbone of this affluent behaviour on the supply side.
Supporting them isn’t just good karma—it’s good economics.
The game has just begun. Now let’s play.
Bharat Mata Ki Jai 🇮🇳
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