Luxury watch sales to boom in 2011

With increased demand, the luxury goods market is all set to boom this year, says an ING

fund manager. While the stability, strength and brand recognition of watches in India will help this luxury sector prosper. There is a huge growth potential, especially fuelled by demand from Asia. Compared to other luxury products, like handbags, watches, etc, brand recognition in the watch industry tends to be higher. Moreover sale of brands like Rolex, Swatch and Patek is also prospering. Swatch, the world’s largest watchmaker, is expecting record sales in 2011. Demand over the last year has been so high and is growing at such a high rate that retailers have even been able to hike their prices without sales figures suffering.

There has been a drastic change in how the Indian consumer behavior has gone through a radical makeover. The focus has shifted from price to quality to a large extent. The reason for the splendid spending is the surging salaries because of the advent of huge multi-nationals planting their seeds in India. India has become a great market for the luxury segment.