According to the report released by CII-Kearney, the luxury market in India has shown a robust growth of 20 percent over the past year and is estimated to have reached to $5.8 bn (nearly Rs 28,500 crore). Luxury products grew by 29 percent, services 22 percent and luxury assets rose by 13 percent.
Jewelry, electronics, cars and fine-dining have grown beyond expectations, and apparel, accessories, wines and spirits have witnessed strong growth. Luxury market has gone beyond Delhi, Mumbai and Bangalore to Chennai, Hyderabad and Pune.
The report also revealed that consumers are accepting and adopting global trends much faster than anticipated. Digital and social media have made it possible for companies to connect to the once hard-to-reach Indian consumer. "Around 50 percent of our employees work for social media and this is our future work force," said Angela Ahrendts, CEO, Burberry, speaking on the sidelines of CII-ET Dialogue on Luxury at ITC Maurya, New Delhi on October 11.
Commenting on the occasion, Neelesh Hundekari, Prinicipal, AT Kearney said that Indian luxury market needs to focus on SME (small-medium enterprises) customers as they are intimidated by big brands. He also stressed that the Indian luxury retailers have to be cautious on their store sizes and inventory. Hundekari suggested that luxury retailers need to offer more variety or a wide range of luxury products to the Indian shoppers.
Joshua Schulman, CEO, Jimmy Choo, said that at present the brand has three stores in India and is looking forward to expand its retail footprint in the country. He said that India lacks infrastructutal facilities which hinders the luxury growth market. The company plans to expand its product verticals by entering new segments such as handbags, fragrance (this fiscal) and leather products.
Anand Sharma, Minister of Commerce and Industry and Textiles said: "International players in the luxury market need to create partnerships in India. The government is playing its part to provide a conducive environement for the foreign luxury players to flourish in this country and it is already working on Free Trade Agreement with the EU, opening pathways for European players."
-Avinder Batra
