Global luxury brands 'neither a worry nor a pushover'

12 Apr '06

3 min read

The other vulnerable spot for Indian designers could be due to flaws & faults in fashion garnishing, as they lack the sense of running a tailor-made brand-led business.

Having a strong accessories franchise, global luxury brands such as Louis Vuitton and Bvlgari, make handbags, belts, cufflinks and wallets, used as a range strategy, as well as a potent entry price strategy for attracting first-time consumers.

As there is limited 'appropriate retail space' for global brands, the Indian designers can take relief.

Also because of strict codes on the retail environment few brands have ventured outside the confines of five-star hotels shopping areas.

According to Rajeev Karwal, CEO, consumer durables vertical for Reliance Retail, in luxury malls - watches, perfumes and other accessories are available and the airports and five-star hotels provide luxury apparel and footwear.

The Indian retail industry may grow to Rs145,000-crore by the year 2010 from Rs88,000 crore, according to KSA Technopak.

It is presumed that there will be a huge market to compete, even if luxury brands take away Rs 5,000 crore of the market.

There will be no negative impact to Indian fashion labels due to the arrival of luxury brands but on the other hand will only increase the apparel market, since they are a miniature part of the vast sector.

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