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

Luxury goods makers positive about business despite a slowdown

Luxury goods makers positive about business despiteAs is evident from a luxury shopping festival currently underway at the DLF Emporio Mall in New Delhi, the luxury goods sector is facing a definite chill this festive season. However, some brands continue to do well. In recent years, the luxury sector has been at the receiving end of various policy changes but it hopes to register strong sales this year. As Dinaz Madhukar, Executive Vice President of DLF’s luxury retail and hospitality vertical reveals, some of his brands are doing exceedingly well others are seeing tepid sales. The brand hopes to get a clearer picture of the situation in the next couple of weeks.

Gayatri Ruia, Director of Phoneix Mills that runs Palladium, Luxury goods makers positive about business despite a slowdownalso expects to grow 5-6 per cent this year as consumers are still spending on luxury goods. As Statista estimates, the Indian luxury goods segment is expected to grow by a 6.6 per cent CAGR growth during 2019-23. Market research firm Euromonitor forecasts the Indian luxury goods segment will grow at 18.1 per cent during 2019-23. It counts luxury eyewear, jewellery, leather goods, time pieces, writing instruments and consumer electronics for its estimates.

Though India is emerging as a major luxury market due to the massive expansion of Indian economy in the post-liberalisation decades, the country is yet to live up to its potential compared to China.

Slowdown in some luxury segments

Luxury segments such as watches and air charters are witnessing a perceptible slowdown. As the Federation of the Swiss Watch Industry, a leading trade association reveals, the export of Swiss watches to India between January and August this year declined to 96.3 million Swiss Franc, or CHF (approximately Rs 685 crore), from 98.7 million CHF during the same period last year.

Air charters too are witnessing a slump as the 18 per cent GST levied on them is preventing corporate clients from chartering jets for travel. Also, the government made PAN card mandatory for all purchases above Rs 2 lakh. This alongwith the rise of online channels makes it difficult to arrive at an accurate picture of luxury consumption in the country.

Brands witnessing strong growth

Recent reports suggest, some of luxury brands have demonstrated strong growth. For example, Reliance Brands, reported an operating profit of Rs 378 crore in FY19, up from Rs 336 crore the previous fiscal. Similarly, Aditya Birla Fashion & Retail’s retail chain’s The Collective plans to expand through two more stores in the next 8-9 months in Pune, and one more store in Delhi. The company witnessed double-digit like-to-like growth this year. It has also expanded its network by adding brands like Ralph Lauren and Ted Baker to its kitty this year. As ‘Global Powers of Luxury Goods 2019’ report by Deloitte had said, these companies are betting on the ‘high earners, not rich yet’ (HENRY) consumers that have a significant discretionary income and a strong chance of being wealthy in the future.

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

Reopening of Kashmir market, government initiatives to revive Amritsar textile s…

Reopening of Kashmir market, government initiatives to revive Amritsar textile sector

Political upheavals in a particular city have an impact on its local industries. A recent example of this is the impact of abrogation of Article 370 in Kashmir on the... Read more

House of Zodiac brings colour of the season at AW19

House of Zodiac brings colour of the season at AW19

The celebrated collection in men style, The House of Zodiac brings alive Burgundy across different designs in a range of shirts, trousers, bandhgalas and men’s accessories. The shade with rich vibrancy... Read more

Trent to add 40 Westside stores every year

Trent to add 40 Westside stores every year

Tata Group-owned Trent plans to add as many as 40 stores of its flagship Westside chain every year. Along with Westside, the company will also add 100 Zudio stores. The... Read more

Flipkart, Amazon continue to incur losses even as they expand business

Flipkart, Amazon continue to incur losses even as they expand business

Though two of India’s online retail behemoths Amazon and Flipkart are still posting losses, these have narrowed now and revenues have been increasing over the last four financial years starting... Read more

Women’s contribution to activewear increases

Women’s contribution to activewear increases

Women’s contribution to the sports brand’s sales has shot up. Brands such as Nike, Reebok, Adidas, and Puma have seen a rise in sales due to increasing participation of women... Read more

Duke launches new sweaters and jackets collection

Duke launches new sweaters and jackets collection

Duke Sweaters Jackets collection’19-20 offers a plethora of stylish options in lush fabrics, trending colors, designer patterns and prints, all inspired by the world-famous city of Europe. Duke fashion line... Read more

Rakesh Biyani is new President of CMAI

Rakesh Biyani is new President of CMAI

Rakesh Biyani is the new president of the Mumbai-based Clothing Manufacturers Association of India (CMAI). Rakesh Biyani is Joint Managing Director at Future Retail Limited. CMAI had a long association... Read more

Stores see lower footfalls during festive season

Stores see lower footfalls during festive season

Footfalls at stores in India were lower as compared to last year’s festival period. Despite the festive season, there were several empty shelves and early store closures. Revenues for retailers... Read more

Officewear becomes sporty as brands incorporate more athlesiure styles

Officewear becomes sporty as brands incorporate more athlesiure styles

Wearing traditional three-piece suits to office is passé. Today, office dressing is more about cool and comfortable sneakers as athleisure trends are slowly but surely invading workplaces. The line between... Read more

Fashion brands entering India tweek products to match local tastes

Fashion brands entering India tweek products to match local tastes

Fashion brands are making a beeline for India. But winning over customers in Asia’s third-largest economy requires a more tactful strategy than simply showing up. Brands that don’t succeed in... Read more

MOST POPULAR NEWS
Go to top