India’s luxury goods market is forecast to be worth close to $15 billlion by 2015. Hardly surprising really, Indian markets have been increasing their consumption across almost all industries in recent years. Australian export industries are scrambling to forge partnerships with Indian businesses, and it looks like European luxury brands have their eyes on the same prize. Some of the top ranking Italian luxury brands are planning to collectively invest 150 million euro in India- a handsome return on investment if the market grows as it is expected to. According to the executive director of the Italian trade group Fondazione Altagamma, 50-60 stores will appear, as more and more luxury brands begin to assert themselves in the Indian market. In light of what we have seen at the Delhi Commonwealth Games, India still shows an enormous disparity between rich and poor. The socio demography falls at extremes. Luxury brands investing in India is a risky strategy on many levels. We wonder whether their presence will be welcomed as it has been in China, or will it simply exacerbate social tensions?
For now, India’s luxury industry still lags behind Chinese and Brazilian peers. Despite an increasing number of millionaires in India, the lack of quality retail spaces, high import duties, bureaucratic red tape and counterfeits, have hindered the industries progress. We are interested to see how the Indian luxury market grows...
Follow MO Luxury's Facebook page for more luxury news...
No comments:
Post a Comment