Feedback
A pioneer B2B media and publication platform connecting with Fashion Brands & Retail in India

India’s luxuries market to clock in 10 per cent growth till 2022

Indias luxury market to clock in 10 per cent growth till 2022 002The luxury market, comprising of products, services and assets is growing at around 5 per cent. The luxury products market forms around 30 per cent of this total market. Internationally, the market has stagnated in the recent past (2012-17) due to several macro-economic and global factors. Notable among them being the crackdown on corruption and gifting in China, terrorist attacks across Europe which impacted tourism and luxury purchases by tourists, appreciation of the euro and swiss franc against the USD and the Yen impacted US and Japan. Further the unsettled political climate in the US due to new leadership, and in EU due to Brexit took its toll.

Indian market to grow by 10 per cent

However, the Indian luxury products market, estimated at around $6.25 billion, was relatively insulated from these global events. It grew at a robust CAGR of 18 per cent over 2012-17 and is expected to grow by 10-15 per cent until 2022. Perfumes and apparels are the largest growing segments within luxury segment.

Indian brands emerge strong

Indian brands are creating global standards. Indian ethnic apparel,Indias luxury market to clock in 10 per cent growth till 2022 001 primarily wedding and festive wear has seen many Indian designers take centerstage and create a market where none existed. Likewise Reliance Brands and Genesis Colors have brought in international brands to India and opened stores in every high-end mall. While none of these are billion-dollar businesses, the innovations that they are bringing in the space and their growth rates are promising.

Foreign brands continue to attract consumers

Most luxury brands in India try to get at least some part of their latest collections every season. Despite this Indians who travel abroad prefer to shop in the US, Dubai, London, Singapore, France, Italy and Switzerland either for the bragging quotient or to take advantage of the generous deals available. Import duties make products at least 10-15 per cent more expensive in India, which can sometimes be twice as expensive as compared to deals available in post-season sales and in outlet malls. The market would easily double or triple if all of this shopping happened in India.

Indian brands flaunt logos

Indian consumers buy to flaunt. They want to show that they have arrived, using luxury products to communicate status and prestige. Hence “flashing logo” brands do well and brand performance is highly correlated to its popularity.

Businessmen emerge the biggest buyers

The real buyers of these products are small and medium enterprise owners and their families. They have money but crave status, have cash to spend and don’t know where to spend – luxury products offer the perfect solution – buy your way into elite society by flaunting luxury. It doesn’t stop at products, in fact products come later – house and car come first.

However, fundamental barriers like a scattered consumer base and higher prices leads to lower footfalls. An all pervasive middle-class mindset leads to bargain hunting lowering the percentage of full-price sell through hurting gross margins. Weak margins and a small base reduce the attractiveness of the market leading to fewer investments even though the country has the potential to stand out in growth terms.

LATEST TOP NEWS
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

Campus Sutra targets growth through product, retail expansion

Campus Sutra targets growth through product, retail expansion

“We keep pushing the envelope and introduce newer and better version of our products every season,” notes Aditya Agarwal, Co -Founder. “This season, we are focusing on technologies like UV... Read more

Asics expanding product range and retail network

Asics expanding product range and retail network

Rajat Khurana, Managing Director-Operations, Asics feels, yoga pants and gym clothes have taken over the mainstream apparel sector and are even threatening to dethrone denim as the go-to basic. The... Read more

Smag introduces athleisure series, expects 40 per cent market growth

Smag introduces athleisure series, expects 40 per cent market growth

Celebrating 10th year of its establishment, Smag Retails is introducing an athleisure series in sweat shirts and knitted coats in blazer categories. “Sweat shirts and jackets are in demand,” notes... Read more

H&M India sales cross Rs 1,100 crores

H&M India sales cross Rs 1,100 crores

H&M has crossed Rs 1,100 crores in sales in India during the year ended November 2018. The Swedish fashion retailer entered India in October 2015. The company has been lucky... Read more

Numero Uno looking to create meaningful classic products

Numero Uno looking to create meaningful classic products

In its S/S ’19 collection, Numero Uno focuses on macro trends. For example, Feeling Natural, is a theme inspired by nature, with its slubby, injected textures and home -spun structures in... Read more

Myntra chalks out new strategies to drive growth

Myntra chalks out new strategies to drive growth

A lot is taking place at Myntra. Firstly, the e-commerce company plans to move out of its current Bengaluru office in the next few months. Its parent company Flipkart Group... Read more

I Wear Me nurturing organic concept through retail and product expansion

I Wear Me nurturing organic concept through retail and product expansion

“India is still warming up to the idea of organic,” says Hina Palkar, Director, I Wear Me, a premier T-shirt brand that offers 100 per cent organic cotton tees. “Although... Read more

A promising season ahead for Oner with new collections

A promising season ahead for Oner with new collections

As per Rishav Jain, Managing Director of Oner, “T-shirts are the universal choice of women across the world due to their comfort and moderate pricing.” The brands summer collection 2019-20,... Read more

Pepe Jeans’ new collection to make customers cozy and stylish

Pepe Jeans’ new collection to make customers cozy and stylish

The upcoming autumn/winter 2019 collection of Pepe Jeans India focuses on making customers feel cozy. The collection through its cappuccino, forest green, ochre, pops of orange, blue and grey tones... Read more

New innovations to fuel Duke’s market growth

New innovations to fuel Duke’s market growth

Drawing inspiration from European Fashion, Duke Fashions India recently introduced light weight sweaters, quilted interlocks and fancy jacquards. The brand, which emphasises equally on fashion and functionally, targets 30 per... Read more

MOST POPULAR NEWS
Go to top