Luxury goods makers try to crack Indian market
on March 28th, 2009 at 7:24 amNEW DELHI: Is India the next China for luxury goods manufacturers?
As Western markets falter, high-end retailers are searching for places where consumers are hungry for more glitzy brands and luxury products. India, in some ways, fills the bill, even as its economy cools.
While India makes up just 0.4 percent of global luxury good sales, the market is growing at 25 percent a year, according to a recent Bain & Co. study. There are 1.5 million households in India who could afford luxury goods, compared with 1.6 million households in China, according to McKinsey.
The numbers have prompted some luxury brand names to open retail stores in the largest cities in India in recent months, despite the economic downturn.
New entrants say that gaining a foothold in India has not been easy, and doing business has been difficult.
John Hooks, deputy managing director at Giorgio Armani, said he made dozens of trips to India over several years before partnering with DLF, a real estate giant. Foreign retailers are limited to 51 percent ownership of stores in India.
o As a long time wearer of all things Armani, I was shocked to find out that Giogrio broke his promise to stop using fur. I recently read about it on PETAAsiaPacific.com. Doesn’t he know what horrible lives those poor little animals are leading?! Being confined to cages and the brutally killed with barbaric methods! See what Armani is supporting by watching this video http://action.petaasiapacific.com/ea-campaign/clientcampaign.do?ea.client.id=110&ea.campaign.id=2556&ea.param.extras=ea_source_code:papadvarfifs~c=papfsaf.