Currently, the luxury market that you find in India generates immense attention as majority of the luxury brands of the world have already arrived in this country or are anticipated to enter. After the luxury retailers have kept a close watch on the Indian market, they have decided that India is one among the most vibrant markets in the world and unless the brands enter the Indian market, they won’t be able to capture the Indian buyers.
The success of all the luxury brands is usually determined by the capability of understanding the intricacies of the Indian market. Accordingly, they tweak their techniques to offer the affluent consumers bespoke and unique experience of brands. India is a multi-faceted and distinctive market and it reveals a variety of cultures, history and customs. In fact, there has been a recent book which speaks about the love affair of India with luxury brands. Luxury retailers require understanding the few unique characteristics to serve the Indian market. Read on to know more.
#1: The Indian market is evolving
As per what the experts have to say, India is still in the initial state of development as long as the luxury retail market is concerned. There have been ups and downs in the trend since the last 10 years in the luxury industry. India is seen as the upcoming market and hence the retailers see a lot of potential but there are even people who believe that the Indian market potential is overrated. The best selling items in the market are automobiles, watches, fashion accessories, real estate, handbags and other personal care products, apparels and shoes.
#2: The rules and regulations
It was in 2016 November that there was an introduction of different cash-related restrictions which had an effect on the luxury industry, firstly it was demonetization and then it was the limit of 2 lakh followed the implementation of GST and PAN Card businesses. Such policies have restricted the luxury sector of India but it is seen that the changes can be positive and favorable in the long run. The government has approved 100% FDI for the automatic route for retail trading and this has eased the sourcing norms which are often called mandatory.
#3: Varied features of Indian consumer
The consumers in India are different from a consumer in West or China. Culturally, most Indians are value-conscious and they’re always looking forward to obtaining a good bargain. People usually seek enough value and look for details regarding the price at which they can obtain brands internationally. Since the import duty is pretty hefty, the consumers find it cheaper to buy from Dubai, Singapore or London. Indian consumers these days are always ready to experiment and they have adopted a bold attitude. People of all ages are always open for trying new styles and colors. Indians prefer showing off and quality and craftsmanship is of utmost value.
#4: Increased demand for luxury brands which are reasonable
There are affordable brands like Kate Spade, Michael Kors, Charles & Keith and Coach and they all have been successful in capturing the heart and mind of Indian buyers who are aspirational. The international brands offer an option to the Indian shoppers to purchase status symbols at a lower price than the average luxury brand. In fact, as per Euromonitor International, this is a segment which is growing rapidly at the rate of 40% per year.
Therefore, now that you know how the luxury market in India is growing and evolving with time, you should prepare yourself to be a part of it so that you can participate in the luxury show.