Love
of shopping conquers all, even the global downturn, and high value designer
wear market sprints ahead...
It appears that the love of
shopping for designer products does conquer all, even the economic slump.
Despite the deepening recession, and soaring unemployment, market for luxury
designer brands is cruising. Fashion in India is a growing industry with international events and annual shows by renowned designers being
held at the major cities in India. The consecutive victory of Indian beauties
in international beauty contests, has initiated the desire in the minds of
Indian shoppers to favor the purchase of luxury brands. They tend to shop for
designer brands to advertise their status.
Indian
Shoppers Prefer Designer Brands:
There was a time, when the
designer brands boasted of 'quality' as a point of difference in their products
and used it as their USP. Now, with the increasing number of private label
products entering into the market everyday, and competition getting tougher,
the focus has shifted to 'Brand and its Values', the image a particular brand
name has created in the minds of the consumer. Despite, a vast majority of
consumers consider that branded items are generally overpriced than what they
really are; still a fragment of people believe that designer brands offer a
better quality than standard brands. India stands eighth in the rank; globally,
for considering designer brands as quality items.
A study by Nielsen on the Global
Luxury Brands has revealed that almost 35 percent of the Indians who
participated in the survey confirmed that they prefer to buy luxury brands. India stands third in the global luxury shoppers list next to Greece leading by 46 percent and Hong Kong with 38 percent. The study further reveals that Indian shoppers prefer brands
like Louis Vuitton and Gucci which have an international; high profile. (Source:
Nielsen Report, April 2008)
Prominent
Designer Brands:
The top brands dominating the
Indian market are Calvin Klein with 34%, Gucci with 25%, Diesel with 24%,
Christian Dior with 16% and DKNY with 10%. Indian customers prove to be the
third largest purchaser of Gucci products, sixth for Calvin Klein and ninth for
Diesel and tenth for Fendi products.
Brands manufactured in India are Giorgio Armani, Louis Vuitton, Dolce Gabana, Roberto Cavalli, Calvin Klien, Hugo Boss,
Galeries Lafayette, British India, Hoss Intropia, and Roberta Freymann. Indian
designer brand exporters witnessed an average growth of 40% during 2008 with a
projected growth rate of 15-20%.
Designer
Apparel Market:
The Indian apparel market is
estimated to be around Rs. 20,000 crore of which branded apparel market is of
about Rs. 5,000 crore. Designer wear, it turn comprises only about 0.2% of the
branded apparel market. 66% of the shoppers for designer wear are men and 57%
are women. Western designer wear occupies 5% of the Indian designer wear
market. Profit margin for these apparels and very tempting and vary anywhere
from 30 to 50% depending on the work. Hand painting, patchwork, embellishments,
embroidery are a few works that make the brand exclusive. Since they are
handmade, the lead time is longer around 90 to 120 days.
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