Country’s growing luxury market is set to exceed $ 10 billion-mark by 2014 boosted by a new class of wealthy termed as the ‘closet customers’ who have have joined the traditionally rich contributing to higher luxe sales, a report said today.
As per the CII-IMRB report, the impact of the economic slowdown in 2013 has impacted the luxury market to a certain extent but by mid-2014 the market is expected to revive and continue its growth trajectory and grow at nearly 17 per cent in the year 2014.
From about $3.66 billion in 2007, the luxury market has more than doubled to $ 7.58 billion in 2012.According to industry experts, India could emerge as an important luxury market in the next decade but pricing will continue to play a key role in expanding the market.
As of now, India’s luxury market is much smaller compared with $318 billion globally but the 1.2 billion population, which contains affluent consumers, makes it very appealing.“India could become an important luxury market in the next decade.
However, right pricing is very important. A luxury brand cannot bring down prices just to attract more customers, to make it more affordable. Premium pricing is essential to ensure the brand exclusivity,” Canali, Generale Manager, Stefano Canali said in the CII-ET Dialogue on luxury.
The luxury market in India is slated to grow at a compounded annual growth rate of over 16 per cent for next three years, says the CII-IMRB report.Agreeing with estimates, Genesis luxury Fashion Pvt ltd MD Sanjay Kapoor said despite economic slowdown, the luxury market in India is poised to grow in 2014.
Genesis markets brands like Armani, Burberry, Canali, Paul Smith and Jimmy Choo in India.
Right policies would also go a long way in the boosting the fortunes of the Indian luxury market.According to Canali, in order to become an important luxury market, India’s policies must be conducive. “High import duties and other impediments such as infrastructure are negatively impacting India’s prospects,” he said.Challenges luxury players face in India is making the brand known amongst its target customers.According to BMW Group India President Phillip von Sahr, the next challenge is ensuring brand loyalty from customers.