Perspectives from India

Aparna Dutt Sharma,Chief Executive Officer, IBEF

Luxury Market in India - Tapping the luxurious consumer

Aparna Dutt Sharma, Chief Executive Officer, IBEF

The rising disposable income levels and a large pool of aspirational young consumers make the Indian market an attractive destination for luxury retailers. According to a recent study, India's luxury market is expected to touch US$ 14.73 billion by 2015 from an estimated US$ 8.21 billion in 2012. Another study claims that India will overtake China as the world’s fastest-growing market for luxury goods in 2012.

Apart from the huge market potential, it is the business-friendly government policies that are attracting luxury retailers towards the Indian market. In fact, soon after the government announced reforms in the single brand retail space this year, there has been a spurt in the confidence of the luxury retailers willing to enter India.

Unlike the earlier preferred mediums of franchisee and distribution deals, many luxury retailers are today considering wholly owned subsidiaries or joint ventures as their preferred medium to enter India. The luxury market in India is expected to grow at a rate of 22 per cent over the next five years. Clearly, the market continues to provide sustained opportunities for growth in the coming years.

Nov 262012

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