India’s luxury market to stagnate in 2012

India being one of the fastest emerging nations,

many global brand companies have entered the markets to tap on the lucrative opportunities here. However, according to a research by by CPP Luxury Industry Management Consultants done in the first half of 2012, India will not see any international brands entering India. And that the luxury fashion and accessories sector will remain flat in 2012 as compared to 2011.

It stated that even after changes in single brand FDI norms, no international brands seem to venture into Indian market before the end of 2013. Some international brands which are planning to enter India at a later period are Prada, Ralph Lauren, Tiffany and Max Mara. Also, those brands which are already present in India don’t have any plans to expand their business in 2012. Luxury brands like French luxury brand Chanel or Hermes still have a limited retail presence – Chanel with one store and Hermes with two stores.

However, it is estimated that luxury sectors such as cars, furniture/interior design, yachts, watches and travel are likely to continue their growth path at double digits. A detailed annual report on India’s luxury market will be released by CPP during a business event in Milan, by the end of September.

CPP has been actively covering India for four years, conducting extensive research on all luxury sectors, highlighting the potential of the market and the specifics of the Indian luxury consumer.