Trak.in is a popular Indian Business, Technology, Mobile & Startup blog featuring trending News, views and analytical take on Technology, Business, Finance, Telecom, Mobile, startups & Social Media Space

Luxury Market In India set for Expansion and How?

4

Luxury-Shopping

You gotta be kidding me! Expansion in the time of economic slowdown and that too the luxury retail segment. India is not considered to be the consumer of overly expensive and exclusive luxury niche. We, the common man (aam admi) brigade pride ourselves in buying the cheapest durable product that is.

It’s time to wake up and give it a re-thought. Indian Consumer has changed and so has their mindset. Ok, not to generalise it but yes, there has been a drastic change in how the Indian Consumer behaviour has gone through a radical makeover. The focus has shifted from Price to Quality to a large extent.

Blame it to the surging salaries and the young MNC executive pulling huge salaries dominating the dominating the average consumer,or the advent of huge multi-nationals planting their seeds in India. Yes, India has become a great market for the luxury segment.

It is a general perception that FMCG sector is the only sector that thrives well in tough times. In fact, FMCG giants like Hindustan Unilever have been consistently registering double digit growth.

But, then the luxury segment is an underdog when it comes to Indian Markets. They do not get enough coverage but they go on registering double digit growths without any hula boo. Proof you say?

Figure this,

The epitome of luxury segment Ala Collector’s Items has picked up hugely in the otherwise uncharted territories of Indian Markets, and double digit growth is what they are delivering.

The brands like Lladro, Swarovski have had a pan India presence for quite sometime. And expanding they are in the midst of a slowdown. Lladro has opened its largest retail store at the swish UB City in Bangalore and is on the lookout for more.

What makes an an expensive brand like Lladro click in these times??

"In these difficult times, we believe buying a Lladro product makes you feel good", says Rosa Lladro,President,Lladro

How’s that for an answer. I sure can’t understand how buying a Lladro product can make one happy when the latest from their stable, The Queen Of Nile figurine costs Rs.1 crore.

Now, Lladro is not the only luxury brand making waves in India. Swaroski, the crystal maker is making giant strides too with plans to expand their presence from 17 exclusive stores to more new stores across the metros.

Here are some interesting set of facts from one of three most profitable luxury market leaders in India:

 

Lladro

Swarovski

art d’inox

Product

Exclusive Porcelain Figurines

Crystal

Home Lifestyle

Presence

18 exclusive stores

17 exclusive stores

29 exclusive stores

Expansion

More stores in Metros,Expanding product range

4 new stores in six months

4 new showrooms in tier-1 cities

Growth in the last fiscal

75 percent

25 percent

Double Digit Growth

Data Source: BT

If these mind boggling figures are anything to go by, I am sure as hell that India is nowhere near to Recession. It is only a case of the money not spread evenly :)

This got me thinking. What makes this segment click irrespective of the economic conditions at hand. Few might argue that their target consumer has fat pockets, but then isn’t every corporate honcho in India going haywire with the economic slowdown.

Also, are there any lessons to be learnt from the Luxury Market Business Model. If a business with a very niche target market can consider expanding in these though time, I am sure other businesses can atleast take a leaf from them to stay afloat.

Interestingly, I figured I had an answer to this when I started reading Winning By Jack Welch. But ,I will keep that for another time. I am sure the readers will have a lots of inputs to contribute.

And then, if at all we do arrive at any positives from the discussion, then we can have a sequel to this post titled "Lessons To Learn From Luxury Markets" :) What say?

[Today’s post has been sent by an anonymous blogger, who is working in the field of Finance and Stock Markets. You can post your thoughts and questions and he will be more than happy to answer them.]

  1. sanchita says

    Well this is wishful thinking. the economy is in doldrums and during such times even the super rich get cautious and sensitive towards thier expenses. on the contrary it is time for the bargain providers like Walkmart to make a mark in the Indian Market

  2. Nihal Fernandes says

    If you could pls help me with some info on the Luxury brands business in India. Their adv strategies. What they are looking from the indian market. The size of the luxury business in terms of revenue, future trends etc…..The existing clients and those looking at establishing presence in india.

    Regards,
    Nihal

  3. priyanka priya says

    thanks…..but i need more information on the opportunity of luxury brands in india as i am doing minor project on this topic…

  4. Anaggh A. Desai says

    Absolutely correct. Luxury & Recession have nothing to do with each other. Have the CEO bonuses stopped? Have the parties stopped…they may have become discreet. Also what better time to go all out then during the Recession (actually I prefer the term Correction). Better deals, yes even in luxury these are available; zeros differ that’s all.

    And mind you in the last 5 years, luxury has gained a complete different meaning.

Leave A Reply

Your email address will not be published.

who's online