Home / Knowledge / News / Fashion / India's luxury market to grow three-fold by 2015
India's luxury market to grow three-fold by 2015
Apr '12
The luxury market in India is likely to grow three-fold by 2015, according to a recent report.

The luxury market in India has witnessed a healthy growth of 20 percent and is estimated to have reached US$ 5.75 billion in 2010. Of these, luxury products have grown the fastest at 29 percent to reach a size of US$ 2.05 billion, well above expectations of 23 percent. While luxury services have grown at 22 percent to reach US$ 0.95 billion, luxury assets have grown at 13 percent to reach US$ 2.75 billion.

India's luxury market is projected to grow by three-fold to reach US$ 14.72 billion by 2015, according to AT Kearney's India Luxury Review 2011 report.

Speaking to fibre2fashion, Mr. Abhay Gupta, founder, promoter and CEO of Luxury Connect, said, “Higher disposable income and education levels have further strengthened the willingness of Indians to spend on high-end luxury products. If the current economic conditions remain same, Indian luxury retail will see a great rise.”

Analyzing the lukewarm response to the Indian Government's decision to allow 100 FDI in single-brand retail, he says, “The latest opening up of 100 percent FDI clearance in single-brand retail was expected to prompt more brands to enter the lucrative Indian luxury market. However, the primary reason for lukewarm response seems to be the 30 percent sourcing clause, wherein the brand needs to source 30 percent of their products from Indian SMEs. Majority of foreign brands eyeing Indian luxury market as a retail hub, are not even sourcing from India for their global requirements.”

Commenting on future prospects for luxury retail market in India, he says, “It certainly looks promising. There are a lot of brands eyeing Indian shores and it will boil down to further product specific specialization. Luxury Connect is in talks with 10-12 luxury brands with a long-term vision for India.”

“There is a lot of scope for improvement in strategising the brand entry and how it should sustain the incredible Indian market. There have been many instances of luxury brands closing down in India. One of the reasons for closing down has been poor location planning, resulting into low footfalls leading to poor bottom lines. Joint ventures have also gone sour in the past as the sales personnel of Indian partners have been unable to understand the luxury brand's DNA and consequently failing to pass on the brand's DNA to Indian clientele. In spite of such reasons hampering the growth, luxury retail in India has witnessed 20 percent growth. So, the full potential is yet to be unleashed,” he mentions.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: ITMA 2015

Textiles | On 21st Jun 2018

Italy to host textile machinery fair ITMA in 2023

ITMA, the trendsetting textile and garment technology platform, will...

Courtesy: Connor Group

Textiles | On 21st Jun 2018

Protectionism top threat to textile sourcing: William Connor

Protectionism is the biggest political factor and threat affecting...

NRF urges US Congress to step in, stop trade war

Apparel/Garments | On 21st Jun 2018

NRF urges US Congress to step in, stop trade war

The National Retail Federation (NRF) recently urged the US Congress...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search