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

India to emerge a strong market for luxury brands

"Indian luxury market needs to think in terms of size and growth, at least 10 years ahead of its time. Luxury brand Louis Vuitton opened its first store in China in 1992 but could offer reasonable sizes only 20 years later. The brand opened its first store in India in 2003 and is still few years behind when it could offer the right sizes. Standardising luxury by considering optimum price for experiential and personal luxury goods, BCG classifies handbags above €1,000, shoes above €300, restaurants spend of above €150 and wines and spirits – more than €100 as true luxury. The luxury market in India is approximately $12 billion-$15 billion or 1.5 per cent of the world market. China, on the other hand, makes up 40 per cent of the world luxe market."

 

India to emerge a strong market for luxury brands 2Indian luxury market needs to think in terms of size and growth, at least 10 years ahead of its time. Luxury brand Louis Vuitton opened its first store in China in 1992 but could offer reasonable sizes only 20 years later. The brand opened its first store in India in 2003 and is still few years behind when it could offer the right sizes. Standardising luxury by considering optimum price for experiential and personal luxury goods, BCG classifies handbags above €1,000, shoes above €300, restaurants spend of above €150 and wines and spirits – more than €100 as true luxury. The luxury market in India is approximately $12 billion-$15 billion or 1.5 per cent of the world market. China, on the other hand, makes up 40 per cent of the world luxe market.

One of the biggest constraints for Indian luxury market is talent. An important part of the experience is the in-store staff. There are simply not enough trained people available. Even the pool available is more deferential than an informed seller of luxury.

Change in perspectives

Popular perception that luxury consumers are old, live in metros and predominantly female needs to change.India to emerge a strong market for luxury brands 1 Although dealerships for luxury car showrooms exists in cities like Jalgaon and Coimbatore, but the consumers in most cities do not find the offer in India compelling and end up purchasing goods either in Singapore or London, where they get a better range, service standards and retail environment.

The role of women as prospective buyers in both luxury and premium categories is changing. With the percentage of women getting education rising higher than boys increasing since 2015, the future consumer-base for luxury and premium goods is likely to be female-centric. In China, this segment of young working women is amongst the most important demography in luxury.

The India advantage

The Chinese luxury market is much bigger than the size of Indian luxury market and is growing at a healthy clip. The spread in China is much broader – 50 per cent of luxury consumers are beyond the Top-15 cities. India also being a big country, has a potential of vast spread beyond Tier I cities.

Most global luxury brands worldwide started as craft brands a century or more, ago. Bulgari, for example, was once a single jewellery store and Burberry an outdoor wear manufacturer; today these are global iconic brands across categories. India also has potential to build few luxury brands in future due to its ideal business climate. High end apparel or jewellery, etc are some categories where true Indian luxury brands may emerge. Some brands in India have already started on that journey and are likely to attain global reach and appeal shortly.

Historically, luxury brands invest a lot in print for brand building. In France, LVMH is the biggest print advertiser. In contrast, a lot of brand building in China happens online. India is likely to adopt the mid-approach by focusing less on TV as it finds less relevance in luxury owing to increased fragmentation and also being a low attention medium. 

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

Fusion wear poised for bigger growth with increased brand play

Fusion wear poised for bigger growth with increased brand play

Unique to Indian catwalks, fusion wear is taking over as an innovative solution to changing fashion sensibilities. Global brands are competing with domestic players in mix-n-match apparel segment whose main... Read more

Revolutionising the clothing re-commerce market, some players take lead

Revolutionising the clothing re-commerce market, some players take lead

  As re-commerce, when particularly executed by partners, unleases a low-risk, high-reward market for goods, and offers a straightforward path into a more circular business model, clothing brands are increasingly turning... Read more

Innovation, customisation drives denim demand amongst women

Innovation, customisation drives denim demand amongst women

A plethora of factors such as growing urbanisation coupled with rising incomes in a rapidly growing India has resulted in continued success of women’s denim segment. To leverage growth in... Read more

CMAI Apparel Index : Q2 records lowest ever growth at 0.18, Small brands trailin…

CMAI Apparel Index : Q2 records lowest ever growth at 0.18, Small brands trailing the pack

  CMAI’s Apparel Index for Q2 (July-Sept FY 2018-19) indicates growth has fallen to almost a no growth level and touched 0.18 points. It is the lowest ever, in last five... Read more

Duke’s launches Austria inspired stylish options in sweaters, jackets

Duke’s launches Austria inspired stylish options in sweaters, jackets

Duke sweaters & jackets’ collection for 2018-19 is a gamut of styles in lush fabrics, trending colors, designer patterns and prints, inspired by Austria. The men, women, and kids collections... Read more

Value retail emerges a high profit business across India

Value retail emerges a high profit business across India

While premium brands maintain their exclusive tag by being present only in select stores and places, value retail stores offer high street designs at affordable prices for the multitude. These... Read more

Cambodia’s Tonlé sets sustainability goals for global fashion industry

Cambodia’s Tonlé sets sustainability goals for global fashion industry

The world is being plagued by environmental abuse from all kind of industries. Traditional economies, dominated by the use and throw policy, did not consider the material’s end use. It... Read more

Aiming to spreadout, Madame scouting for a partner in Southeast Asia

Aiming to spreadout, Madame scouting for a partner in Southeast Asia

Women’s fashion brand Madame is updating its sequenced stores in India. The brand’s joint venture with the Spanish unisex brand Camla Barcelona involves importing their products in men’s and women’s... Read more

AEPC organises the Fabric of Unity to commemorate the Indian Textiles Industry

AEPC organises the Fabric of Unity to commemorate the Indian Textiles Industry

AEPC, to mark the unveiling of the ‘Statue of Unity’ in Gujarat on October 31, 2018, organised the ‘Fabric of Unity", an event to commemorate the Indian textiles industry. Smriti... Read more

Online marketplace Voonik launches new retail format

Online marketplace Voonik launches new retail format

Voonik, the online market place for women's fashion has launched a new retail format known as the mini channels. As per Hari Prasadh, Senior Vice President these are neither pop-up... Read more

MOST POPULAR NEWS
Go to top