India’s luxury market poised for major growth

The luxury market in India is growing and experts say, by 2015 a quarter of the luxury market will be between India and China. And the growth will continue to rise as disposable incomes grow. This was highlighted at a recent conference whose theme was:

“Luxury: Triggers for Growth”. The fourth edition of the Mint Luxury Conference 2011 saw leaders of global luxury brands, top designers, policy makers and actors share their views on India’s luxury market. Setting the agenda for the rapid growth of the luxury market in India, the two-day event was attended by Maharashtra’s chief minister Prithviraj Chavan, film star Abhishek Bachchan, Emanuel Ungaro, Fulvia Visconti Ferragamo, Giovanna Vitelli and representatives of some of the world’s most successful luxury brands.

Each speaker discussed critical issues in Indian luxury business including trends, designs and highlighted the challenges and opportunities in the growing market. Santo Versace, Chairman Gianni Versace, spoke about Fondazione Altagamma looking to grow and strengthen their relations with India. Santo Versace is also the chairman of Fondazione Altagamma, which is a foundation of Italian luxury companies which has plans to start training programs to develop talent in the luxury goods manufacturing and management.

“Between China and India you are looking at a quarter of the global luxury market in 2015.The growth in India between 2015 and 2020 will become even larger as more people come into the consumption curve. Nine million households will be targets for luxury or near luxury consumption. Nearly 42 per cent of India’s wealthy households are in Delhi and Mumbai. Indian consumers really care about brands. Almost 22 per cent of Indian consumers try foreign products and brands,”
said Laxman Narasimhan, Director, Mckinsey.

“India today produces a large proportion of handcrafted goods to the world and their market share is steadily rising. Foreign buyers don’t look at India as a cheap source of supply. They think of India as a unique source of supply,” pointed out Sunil Sethi, President, Fashion Design Council of India (FDCI). “Nearly 3,000 Indian fashion designers with their prêt weeks are ready to capture the world. In men’s fashion week, we are the fourth in the world. India is a world class supply base. Many things in India become luxury just because they are branded. Today’s luxury is about scale. It’s high time India has a luxury brand of its own,” he added.

With the Indian luxury market estimated to touch $30 billion mark by 2015 and the country aiming to become the world’s fifth largest consumer market by 2025, this conference surely struck the right chord in its target premium segment of a rapidly growing economy.