09 December 2019

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Global Fashion brands gearing up for India

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The seasons have been very favourable to the global luxury brands to embark on Indian markets, which has been on the high tide. The first signal of opportunity was raised by the CII-AT Kearney report which predicted that the booming Indian luxury market was growing at 20 per cent a year and would become $14.7 billion by 2015, from $5.8 billion now.

It was followed by the government decision to allow 100 per cent FDI in single-brand retail. Though it had only a lukewarm reception initially, a host of luxury international brands have suddenly woken up. Fashion media reports suggest that they are gearing up to venture into India.

With the number of high net worth individuals increasing and aspiration levels of the young consumer rising, the potential is big. And Indian brands and fashion conscious consumers, who could buy their favorite brands only on their trips abroad, are all perked up.

Considering other big names like Zara, Canali and Louis Vuitton are already in India others such as Tiffany & Co, Christian Louboutin, Abercrombie, Arcadia, Hennes and Mauritz, Prada and GAP are planning to launch their stores in the country.

Other global retailers such as Swedish furniture major Ikea, the UK’s Arcadia group and American coffee brand Starbucks are reported to be firming up their India plans.

India has three million affluent households, defined as those with more than $100,000, or more than 50 lakh, of investable surplus, according to a global affluence study by research firm TNS. Though Indian consumer is looking forward to the luxury brand line-up, the question is, whether these brands are really ready for the Indian market.

According to experts, for foreign brands to succeed in this market, they must first understand Indian taste and create merchandise suitable for Indian audiences instead of stocking old stocks at higher prices.

Last Updated ( Wednesday, 15 February 2012 23:24 )  

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