Concerts, weekend getaways, expensive dine-outs: More affluent Indians are chasing experiences

New Delhi: Come 14 December and Gaurav Khanna, who runs a furniture business in South Delhi, will experience first-hand the euphoria around Punjabi singer and actor Diljit Dosanjh at his Dil-Luminati Tour in Chandigarh. Khanna has paid a hefty premium buying tickets from a resale platform to see the star perform live after slots in the national capital sold out quickly.

Last Sunday, Khanna was busy buying tickets for an upcoming Coldplay concert and more than willing to travel from Delhi to catch the British band that is set to tour the country in early 2025. As expected, like millions of fans left waiting in the “queue” to buy tickets, Khanna too ran out of luck.

Sold-out concert tickets, quick weekend getaways, reservations for eating at top restaurants—more affluent Indians are chasing experiences even if it means spending beyond their means. This spending that stretches to travel, live events and dining could reshape how companies market and offer their products.

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Live entertainment, be it music concerts, festivals or any other performance act, have become a “mainstay” in the social and cultural fabric of India, said companies.

Ticketing and live events platform BookMyShow points to a “seismic” shift in India’s live entertainment landscape, with demand for real-life experiences peaking in 2022 and 2023.

In all, 13 million people logged in to buy tickets on Sunday for the three Coldplay concerts scheduled in January—for which BookMyShow is the official ticketing partner. Ticket prices for the Coldplay show ranged from ₹2,500 to ₹35,000. BookMyShow is also the organizer for Lollapalooza India music festival.

Demand for premiere live entertainment events surged 82% year-on-year in 2023 on the platform especially in curated global events, the Mumbai-based company said.

“We have seen pent-up consumer demand for live entertainment experiences in India and the desire to be a part of such compelling experiences has grown significantly with Indians willing to pay for a premium experience when it comes to leisure time. In fact, in 2023 alone, about 13.5 million entertainment enthusiasts stepped out for live entertainment across over 26,000 events throughout the year, underscoring a significant shift towards high-quality curated experiences that cater to discerning audiences,” said Owen Roncon, chief of business, live events, BookMyShow.

Young consumers are driving this shift, said Roncon. In fact, over 45% of those who attend live music events via BookMyShow in 2024 are Gen Z.

New experiences

While Indians have always been keen to watch artistes, live cricket games or step out to cinemas with friends and families—the recent shift is more pronounced given a surge in aspirations and a consumer base that is rich enough to explore more experiences.

Some also point to exposure via social media that helps them discover events as well as share their experiences online.

Namit Puri, managing director and senior partner at Boston Consulting Group, said that such trends are “very visible” among what he calls the “elite and affluent” households in India—roughly 40 million of them. Such households earn an annual income of ₹20 lakh and above.

“If you look at the elite and affluent households, the penetration of most product categories among them has already reached reasonable levels. As a result, in the last 12 months, over 75% of these households have spent on experiences—of this travel happens to be the largest, followed by dining and indulgence (spas) and entertainment,” Puri said.

Sample this: Indians travelling overseas increased 12% over pre-covid levels in the first half of 2024, per Crisil Ratings. Indian tourists are rapidly emerging as a significant growth engine for global tourism.

Puri emphasized that the market for such experiences in India is still rather “underserved,” and, therefore, set to grow quickly.

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“What has changed is the number of households and just the absolute spending power. It has also democratized thanks to easy access via online platforms. Hence, the addressable market has also expanded,” he said.

Ruchira Jaitly, chief marketing officer of liquor maker Diageo India, said that India is at an “inflection point” and undergoing deep societal change, driven by rising affluence, women, and its young demographic profile.

“There is a growing desire to buy and experience the best on offer, from India and the world. As the youngest large economy with a median age of 28 years, we see changing attitudes towards drinking and a desire for novel experiences,” Jaitly said.

The maker of Tanqueray gin and Smirnoff vodka is responding to these structural shifts by focusing more on premiumization (selling high-quality, costly products), wellbeing and sustainability.

“Music events are a popular experience that consumers are seeking out today, and this trend will continue to grow. We have created experiences at some of the largest music festivals in the country (Echoes of Earth, Lollapalooza India, Ziro Festival, etc.), and will continue to drive consumer engagement in this space. While music and arts continue to gain traction, we’re always on the lookout for new, immersive experiences that meet the needs of the discerning consumers of today,” said Jaitly.

For retailers, this also means dedicating more space for in-store experiences.

Vivek Biyani, co-founder, Broadway, an offline retail concept for new-age brands and live events, said that with consumers accessing their daily products online easily, it is vital that retailers focus more on experiences in stores.

“We are looking for consumers who value experiences over transaction, because the transaction aspect is well taken care of through a lot of the digital platforms,” he said.

While consumer need for such experiences has been evolving over the last decade, it really accelerated post-covid, he said. “A generational shift happens every five to seven years, and that really impacts the way consumers spend. This current generation definitely values experiences,” he said.