Economic Times: July, 2016
New Delhi: Italian fashion house Valentino is set to enter India, joining a growing list of luxury brands that are setting up shops in the country to tap buoyant consumer sentiment after a slowdown in the Chinese economy.
People aware of the development said Valentino is tying up with IDFS Tradings and is also in talks with DLF Luxury Retail for its retail presence here.
ET's email to Valentino's global team remained unanswered till the time of going to press on Wednesday.
Over the past few months, brands like French luxury leather goods maker Longchamp, Italian bespoke menswear brand Isaia, and Swiss watch brand Bovet have been launched in India.
"The slowdown in China, better economic growth and retail facilities here and the possibilities of an omni channel strategy are some of the factors leading these brands to launch in India," said Arvind Singhal, chairman, Technopak Advisors. "While the biggest luxury brands like Louis Vuitton, Gucci and Chanel have been present here for a while, as the market matures, the other niche tier two luxury brands are warming up to the possibilities here."
Euromonitor International estimates that the Indian luxury goods market will touch Rs 39,000 crore by 2020 from Rs 16,300 crore in 2015, with an annual growth of 19%.
Nikhil Mehra, CEO of Genesis Group, which retails brands like Burberry and Jimmy Choo in India, said after the meltdown in China and with no clearly visible upsurge of luxury consumption in the Western markets, India is the next most sought after destination for brands globally. "The economy is showing signs of robust growth and in the long run this would be the largest sustainable market for brands that are looking at expanding overseas," Mehra said.
While Longchamp collaborated with DOIT Retail Brands for its India foray, Bovet and Isaia will be retailed by Mumbai-based Regalia Luxury.
"Brands are beginning to understand the nuances of the luxury retail market in India and are willing to work collaboratively to make a success of the opportunity," said Pratik Dalmia, founder of Regalia Luxury, which also retails British shoemaker John Lobb and Italian suit brand Kiton. "Our primary inclination to widen our portfolio by introducing Bovet and Isaia this year was in coherence with our strategy to help deliver a luxury lifestyle to connoisseurs in India."
Gianluca Isaia, CEO of Italian menswear brand Isaia, which debuted at Madison Avenue in New York last year, said that while Isaia is represented globally in their flagship boutiques, mono-brand locations and the very best department stores, he believes partnerships with key independent retailers around the world is essential and this is the reason the brand is exploring new and different markets, like India.