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

Indian e-commerce players need better strategies to lure customers

Indian e-commerce players need better strategies to lure customers

      Experts believe without effective e-commerce, India’s post-pandemic economic recovery would be harder than it is now. E-commerce players like Myntra and Amazon are helping physical stores overcome difficulties in delivering... Read more

Crisil predicts 25-30 per cent fall in revenues of RMG makers in FY21

Crisil predicts 25-30 per cent fall in revenues of RMG makers in FY21

     Crisil Ratings predicts a 25-30 per cent decline in revenues of RMG makers in ongoing financial year due to the prolonged lockdown and lower discretionary spending. The agency expects this... Read more

From casual to need-based, COVID-19 changes consumer’s shopping habits

From casual to need-based, COVID-19 changes consumer’s shopping habits

    Shopping, the favorite hobby of many Indians; especially women, is undergoing a paradigm shift with the pandemic altering not just the modes of shopping, but the products being bought. While... Read more

India expects ‘V’ shape economic recovery from next year: Fin Min

India expects ‘V’ shape economic recovery from next year: Fin Min

     Speaking at a virtual conference organized by the Federation of Indian Chambers of Commerce and Industry (FICCI), finance ministry official said the government was expecting a "V" shape economic recovery... Read more

Apparel brands and retailers defer new launches owing slow demand

Apparel brands and retailers defer new launches owing slow demand

     Apparel brands and retailers have deferred new launches for this season owing to the extremely slow recovery in consumer demand that resulted from the above-mentioned situation, While a big number of... Read more

Designer Archana Kochhar distributes masks to frontline workers

Designer Archana Kochhar distributes masks to frontline workers

     Designer Archana Kochhar and her team understand that no amount of appreciation will suffice to acknowledge the efforts of the frontline workers who are risking their lives without a thought... Read more

Emotional connect, less wastage fuels demand for bespoke fashion in India

Emotional connect, less wastage fuels demand for bespoke fashion in India

    The growing emphasis on quality over quantity is boosting demand for customized fashion in India. With people buying less, their interest in off-the-rack clothes is weaning, feels designer Payal Singhal... Read more

Weekend shopping shrinks as consumers shop during weekdays, office hours

Weekend shopping shrinks as consumers shop during weekdays, office hours

     With consumers venturing out more during weekdays and office hours, the trend of weekend shopping has shrunk to a third. This change is mainly a result of closure of multiplexes,... Read more

Steady online retail revive demand as offline retailers gear up to boost sales

Steady online retail revive demand as offline retailers gear up to boost sales

    The nationwide lockdown being implemented to curb COVID-19 spread has hit Indian fashion and apparel sector hard with sales recovering just 35 per cent that of January levels. Latest Redseer... Read more

High-street retailers stage quicker recovery than malls: RAI

High-street retailers stage quicker recovery than malls: RAI

     High-street shopping destinations in metros like Delhi, Bengaluru, Pune, Kolkata are staging a quicker recovery than malls for retailers, says a survey by the Retailers Association of India (RAI). Stores... Read more

MOST POPULAR NEWS
Go to top

Follow Us On:

Face BookDealersForYou

TWDFUpublications

LNDFUpublications

YouTubeDFUpublications

 Copyright © 2020 DFU Publications. All rights reserved.