The article discusses the scope and future prospects of luxury retailing in India. Understanding consumer psychology in a diversified market with a huge potential of growth is challenging. Luxury is still in its introductory stages in India and there is vast scope of research, especially about the evolving marketing practices in the related field with special reference to culturally-distinguished consumer groups.

According to a latest press release of Ermenegildo Zegna, the leading multinational in men's luxury clothing and one of the oldest business families in Italy, the size of the luxury market in India is expected to reach $30 bn by 2015, up from $3.5 bn in 2007. The concept of luxury is now not confined to only to Europe and US, the Asian subcontinent has also begun to contribute to it, with India and China emerging as new markets. Commenting on the democratization of luxury and the changing consumer psychology, Professor James Twitchell (2002)said, "These new customers for luxury are younger than clients of the old luxê used to be, they are far more numerous, they make their money far sooner, and they are far more flexible in financing and fickle in choice. They do not stay put. They now have money to burn.

The competition for their attention is intense, and their consumption patterns if you haven't noticed are changing life for the rest of us." According to Patrick Normand, Managing Director of Cartier (Middle East & South Asia), "The growth of India as a luxury products market, and its emerging potential is very obvious now especially as the economy is booming and there is a general positive sentiment towards global brands." According to the latest Asia-Pacific Wealth Report, there were an estimated 1,23,000 millionaires at the end of 2007 in India, up 22.7% from the previous year; making it a huge potential market for international luxury players. According to the Forbes magazine (March 2008), Mumbai—the financial capital of India—ranked seventh among the world's top 10 cities where the largest number of billionaires resided. Despite all this, the luxury market is at a very nascent stage in India. As discussed in Luxurion World 2009, an exclusive trade event focused on the luxury market that was held in Mumbai, the Indian Luxury Market is estimated to be valued at $4.35 bn and this forms only 2% of the global share. For an Indian owning a luxury brand would mean accomplishment. According to a study titled "Inside the Affluent Space" by American Express, an Indian consumer has a desire to prove that "I've made it". He is an aspirer and for him luxury is a reward, which is a mindset very different from a European consumer for whom luxury is an experience.

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