There was a time when people had to travel abroad if they had to buy a Gucci or an Armani. However, the scenario has changed over the past few years, as we are witnessing a plethora of luxury brands entering into the Indian market. Today, international luxury brands are just a walk away.
Luxury retail is growing at 40-50 per cent per annum and seems to grow further in the coming times. International luxury brands are making way to set up their base in India. The past few months have seen the entry of various international luxury brands like Porshe and Vacheron Constantin while Versace and Gucci opened their flagship stores in the country. The demand of the consumers is rising, as people are open to make their purchases from these stores. It is because of the fashion conscious and globally aware consumers that the sales of the luxury brands are picking up.
Post recession period, luxury labels are witnessing a rise in their sales as the revenues and footfalls at the luxury retail have also increased. Emporio Mall which houses luxury brands has witnessed a 35 per cent increase in the footfalls in the last six months. According to the industry experts, the luxury market has doubled in India in the last two years.
Malls preferred location
Malls like Emporio and the year old Palladium are the most preferred retail destinations for the international players. These destinations attract the right kind of potential consumers which luxury brands need for the growth of their business. These malls are visited by about 80 per cent of potential consumers who visit the stores with the thought of making a purchase. Emporio houses 74 International luxury brands while Palladium has 65 high-end brands. Mall owners are working with the retailers to chalk out effective rental plans to bring together the best for their consumers. Hotels are the next preferred destination for the opening of luxury stores.
Luxury brands are not only opening stores in India, but are also looking at the opportunities to set up their own manufacturing units in India as well. Many of the international brands have already begun sourcing from India. India in the coming years will become a manufacturing hub for international brands.
Luxury retail in India has the potential to grow at 60-70 per cent in the near future. With growth expectations so high, we will definitely see the entry of more luxury brands on the Indian shores in the coming years.