BCG-Altagamma: Global luxury to resume 2-5% growth in FY26 as AI reshapes buying

BCG-Altagamma report projects the global personal luxury market returning to 2-5% growth in FY26 and 4-7% by 2029. India stands to gain from rising affluence and digital-first consumers, with 90% using AI weekly and 79% using it to research purchases, though 60% remain at emerging AI maturity.

— Source publishedSat, 11 Jul, 2026, 17:37 IST·First seen Mon, 13 Jul, 2026, 10:24 IST·Source ET BrandEquity

What happened

retail-brand · BCG-Altagamma report projects global personal luxury market returning to 2-5% growth in FY26, with India benefiting from rising affluence,

Key facts

  • 2-5% FY26 growth
  • 4-7% by 2029
  • 90% use AI weekly
  • 79% use AI to research
  • 60% at emerging AI maturity

Why this matters

India's early-stage AI maturity (60% emerging) despite 90% weekly usage creates a window to acquire or partner with AI-enablement and digital luxury platforms before the market matures and multiples expand.

What to watch

  • Q1-Q2 FY26 comparable-store and e-comm growth vs 2-5% band
  • India luxury import/sales data and new-store announcements
  • AI shopping-assistant referral share in brand analytics
  • China aspirational-buyer sentiment and US tariff developments
  • Movement in India AI-maturity metrics beyond the 60% emerging tier
  • Audit and enrich structured product feeds so items surface in AI shopping assistants and generative search
  • Stand up India-focused digital and clienteling investment tied to affluent, AI-native segments
  • Pilot AI clienteling tools for store associates to convert research-stage AI users
  • Reweight FY26 planning to the conservative 2-3% band while resourcing to flex up
  • Build first-party data capture to offset loss of discovery control to AI intermediaries

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