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Vodhi Chakravartty, Head of Strategy, Kotak Private BankingIndia’s high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) seem to be spending more on having ‘life experiences’ than on material possessions – a move that is steadily reshaping the contours of the Indian luxury market.
For decades, India’s wealthy equated luxury with secular possessions, dabbling with all sorts of traditional, emerging, and futuristic mélange of what were perceived and constituted as wealth – rich and sprawling real estate, expensive automobiles, bespoke jewellery and so on. Then came the ‘Great Wealth Transfer’ – a long term, unprecedented handover of wealth from older generations to younger, savvier populace through inheritances and other forms – estimated to be around $83 trillion globally over the next two decades by UBS.
While such a humongous conveyance of lucre is certain to have a major impact on the investment markets and private wealth, it is also expected to be sway the global economies, aligning them to the changing perceptions of the new owners – the younger generation. As Amit Kumar, Asst Professor, marketing at University of Texas, and his team found, increasingly, new generations seemed happier when they spent on experiential purchases vs material ones. In their paper, published in the Journal of Experimental Social Psychology, they argued that “the basic finding is that people derive more happiness from their experiences than from their possessions.” Seemingly, more and more HNIs are now inclined towards ROX (Return on Experience) vs ROI ( Return on Investments). Consulting firm, PwC which worked on a general ROX model, says it gives a holistic view of success than ROI, using metrics such as pride, influence, behaviour, value drivers and outcomes. In fact, ROI is one of those outcomes since it is a very narrow indicator of success while ROX peruses activities and touchpoints that could drive up customer experiences. In marketing parlance, we have enough examples of Apple and Netflix who ‘constantly curate these experiences or create the environment for these to flourish’. The wealthy often finds those experiences or attempts to win their hearts, totally worthwhile. Thus, let us explore this “experience economy,” where the rich and wealthy are seeking experiences that are emotionally engaging, leaving them with stronger memories and a greater sense of well-being – a move that is influencing the contours of the Indian luxury market as well.
From ownership to own experiences: A report by Bain & Company indicates that India’s luxury market is likely to expand 3.5 times, reaching $200 billion by 2030, with experiential luxury accounting for over 50% of this additional growth. This encompasses areas such as bespoke travel, curated wellness, private art exhibitions, and immersive cultural experiences. No doubt, this shift will be more psychological than anything else. Perhaps, we can a good example, closer home. Though Mumbai is often ranked among the top 20 most expensive cities for affluent individuals, the city’s elite are allocating more towards unique experiences in life, rather than owning more of the same physical assets.
Exclusive trips to extraordinary locales: Experiential travel is certainly leading this pivot. According to Virtuoso, a global network of luxury travel agencies, demand for custom-designed travel has grown over 50% year-on-year among rich and wealthy. There are companies who specialize in memorable cruises and expeditions to the Polar region, with personal chefs and adventure guides keeping the company. Many offer safaris – à la Hemingway and Flying safaris like “Out of Africa,” exclusive access to dream beaches and event trips to architecture and art auctions, concerts, and city trips.
Private Performances and Art Safaris: There has been a notable increase in private cultural activities – as observed by Sotheby’s and Christie’s divisions in India – due to the growing interest from Indian clients in art and related areas. With platforms such as The Curatist providing the UHNIs with the opportunity to enjoy exclusive private performances — ranging from classical ragas in historic forts to contemporary theatre in renovated temples – the new generation tends to add much more value to these rare experiences.
Wellness, Reimagined: Wellness is evolving from spa weekends to rare, transformational retreats. According to a Redseer report, the Indian luxury wellness market is expected to reach $16 billion by 2027, growing at 15–17% CAGR. Kotak Private Banking’s Top of the Pyramid report reveals that over 90% of UHNIs consider health and wellness as essential expenditures and are willing to allocate at least 10% of their overall budget to wellness, with 81% having increased this spending on preventive health and lifestyle initiatives.
This growing awareness and eagerness are leading to more wellness-oriented travel to popular destinations like Uttarakhand and Kerala. Many jet off to Bhutan for forest bathing, Iceland for volcanic sound healing, and Japan for Zen architecture detoxes. There are several domestic brands such as Vana in Dehradun or Atmantan in Pune who now offer neuro-wellness, silent therapies, and circadian rhythm programs tailored for each guest.
Now, let us look at the key drivers behind the shift; the post-Pandemic mindset, derived from a near Apocalyptic situation, has changed the human being beyond compare.
UHNIs are now increasingly believing that “time” is the rarest asset. To quote one of the ancient Greek Philosopher Seneca – “The greatest obstacle to living is expectancy, which hangs upon tomorrow and loses today” – implying that to live in the present – the only time that truly belongs to us. Coining the term, “time billionaires” Graham Duncan of investment firm, East Rock Capital, had described the new breed of billionaires as those who enjoyed the advantage of time versus money billionaires who benefitted from the assets. When you are a time billionaire, you have the luxury of time to make money as well as seek every experience that a money billionaire might not have. They have ‘billions of seconds’ to recover from every mistake, build or rebuilt wealth and relationships and even find time to chase hobbies and pursuits, leading to a sense of fulfilment and greater satisfaction.
Many recent studies also attest that the wealthy now consider time as their most valuable asset. With the passive income becoming a favourite theme, they seem to have found their perfect mojo in jet-setting as a large percentage of UHNIs now bestow more for luxury travel and wellness. The digital saturation – wherein you don’t have neither the time nor the propensity to consume more digital content followed by the digital fatigue – is taking a toll on the wealthy Indians who are constantly seeking an escape from hyper-connected lives, looking to disconnect to reconnect.
Perhaps the most influencing factor is the generational change in the thought process regarding life and the many ways of living it to the fullest among the Gen Z and Millennial. A study by Bain suggests that 40% of HNIs under 40 rate “access over ownership” as a key personal value. They would love to share their experiences on private groups or invite-only platforms, which, they find far worthwhile than those self-indulgent selfies around a Lamborghini or private yacht.
American author Robert Collier, in his book – The Secret of the Ages – validates this mentation, saying that “all Riches have their origin in Mind. Wealth is in ideas—not money.” For the affluent in India, luxury now transcends beyond mere material possessions — it now encompasses their experiences, encounters, and the emotions.
The shift is evident: from the accumulation of material goods to the pursuit of meaningful experiences because true wealth is never about accumulation alone – it is about autonomy, alignment and a life well lived with purpose.
(This article is authored by Vodhi Chakravartty, Head of Strategy, Kotak Private Banking. All views expressed are personal.)
- Published On Aug 10, 2025 at 08:00 AM IST
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