Demand for luxury items may be subdued in the global market, but offers potential growth in India. 2010 is likely to see top luxury brands from the EU, and US entering the 'brand spanking new' Indian markets.
India is fast becoming a stopover for global luxury brands. Currently market for luxury goods is on a positive momentum with a compounded annual growth rate of 25%. Increasing level of disposable incomes and penchant for luxury things is making the country a budding market for international brands for big luxury brands. Market for luxury items, especially apparels is on the expansion mode. Followed by garments, perfumes, cosmetic items, and luxury goods such as handbags, shoes etc would also make inroads into the country.
Prominent Brands seeking entry into Indian Markets:
Luxury brand czars are attracted towards India's market potential for the creme de la crme of all that is opulent and stylish. Top brands that are likely to make entry are; Spanish brand Zara Basics, and IZOD, the US men's casual and sportswear brand. 50% of Zara's products are made in Spain, 24% in Asia, and 24% in EU. Gucci, Christian Dior, and Versace are exploring profitable options. Arvind Brands is proposing to launch IZOD in the financial year 2010-11. Their partnership will focus in opening IZOD flagship stores in the country. Luxury apparels will be available in the store racks in an assortment of sport shirts, T-shirts, shorts, active wear, casual trousers, and swimwear.Big brands like USPA, Arrow, GANT, and Cherokee and seeking joint ventures with brands such as Wrangler, Lee, and Tommy Hilfiger.
Other global brands such as Gucci and Armani are at their wings, seeking entry into the country. Premium watch brands such as Tag Heuer, Breguet, Corum, Girard-Perregaux, Jaeger LeCoultre, and Audemars Piguet are all set to make their retail entry into India. French label such as Nina Ricci, and Carolina Herrera, French shoemaker Lounoutin, and Italian Max Mara believe India as one of the fastest growing among the Asian markets. De Grisogono, Canali, Judith Leiber, and Jimmy Choo are showing Indian culture with style, and elegance.Canali has recently introduced its 'Nawab' collection backed up by an inspiration of the sophistication and richness of the lifestyle of Maharajas. Footwear brand, Jimmy Choo has its shoes in vibrant hues matching with the Indianfashion.
Many international brands seek Indian markets mainly for two reasons. There are numerous languages, cultures, and festivals of lurid nature in India. This results in high end consumer spending. India is a country with fast growing population with more number of families with dual income, and with a drastic increase in the amount of disposable income of the middle income level.
With the fastest high net worth individual population, and with an anticipated increase in the level of population in the coming years, India is poised to transform into a major hub for international luxury brands in the next three to four years. (FICCI, Yes Bank report on 'India as a Manufacturing Hub for Global Fashion and Luxury Goods'). The sales strategies to top luxury brands are at a budding stage and offers huge market potential to many of the untapped markets in the country.