WHY THE LUXURY MARKET IN INDIA IS GROWING ?

1. Mergers and acquisitions: Reliance Brands (Indian retailers

of Ermenegildo Zegna, Kate Spade, Thomas Pink and more)
have taken over Genesis Retail (Indian retailers of Bottega
Veneta, Canali, Paul Smith and more) in 2018. And with that,
the largest fashion and accessory conglomerate of Indian
Luxury and premium space has taken shape.

2. The rise of new markets: Luxury has slowly spread its

wings to the hitherto sleepy Tier I & Tier II towns.

3. Reusable/rentable luxury: The global online clothing rental

market was valued at $1,013 million in 2017, and is estimated
to reach $1,856 million by 2023. India is also adapting to
rentable luxury products and services.

4. India’s luxury travel offerings: With increased e-visa

processing, faster on the ground arrival support, eye catchy
https://www.luxuryfacts.com/index.php/sections/article/10-Trends-for-the
Incredible India campaigns, the tourist inflow from within and
-Indian-Luxury-Market-in-2019 outside is likely to further increase.
INTERNATIONAL LUXURY HOSPITALITY CHAINS in INDIA

INDIAN LUXURY HOSPITALITY CHAINS

 RBL is hyper-focused on ensuring
1 that brands can thrive in the long-
term

2 Navigates geographical diversity

The company keeps costs low by

Masstige brands - fast finding favor with consumers 3 dividing the attention of experienced
who have aspirational tastes, but down-to-earth value- executives across several brands

V/ S
consciousness

RBL has consolidated logistics,

4 supply chain, finance, accounts and
HR management into a single
Prestige brands - offer their customers a combination group-wide platform used by all
brands
of supreme quality, value, purpose in the purchase, and an
unforgettable buying experience
Presence of democratized consumption
5 by mixing stores across price points

Customers are not profiled or looked

6 down upon
https://www.voguebusiness.com/companies/india-largest-luxury-retailer-reliance-brands-ceo-darshan-mehta
Masstige + Prestige Bridal Wear Brands in India

Regulations
• 28% Tax on luxury goods.
• The high import duty 30% to 40%
• If, FDI is above 51%, at least 30% of
the value of products sold must be
sourced from Indian small industries,
as well as village and cottage
industries, artisans and craftsmen.
https://rnaip.com/india-promises-market-potential-but-challenges-remain-for-luxury-brands/
C HALLEN G E S
Infrastructure Counterfeiting
• Lack of quality retail space.
• Absence of upscale malls and market
streets.
• For Tier 2 and Tier 3 cities, retail outlets
easily overshadowed by the hustle and
bustle of cities
• Need for modernized and dedicated luxury
retail areas in protected vicinities
 1 Usage of luxury goods denotes an affluent
lifestyle.

Social Factors 2 Fuelled by access to the internet and international

trends, aspiring Indians want experiences that
make their lives better.

3 The fact that Indians are splurging more on

luxury is a clear sign of their maturing taste and
demand for the finer things in life.
Economic Factors
4 Bolstered by rising disposable incomes, the
middle class, and the upper middle class are now
more keen to buy such products.
5 Indians want it all: customized experiences,
invitations to exclusive events, loyalty programs
or membership.
 The Indian Luxury Industry has been growing consistently at
a pace of 20% to 25% per annum for past several years, it
was projected to touch $180 billion by 2025.
Deloitte- The luxury products market in India continues to
experience a moderate growth rate, with a rising disposable
income segment.

Indian industry insiders believe sales could drop

by as much as 50%

Dicey situation of potential customers.

Pent up demand in non-essential yet
extremely relevant sectors like beauty,
wellness, skin care, salons
Revenge shopping phenomenon can and
https://www.livemint.com/mint-lounge/features/will-revenge-buying-save-the-indian-luxury-market should be anticipated.
Luxury Fashion Brands in India
SKIN CARE/COSMETICS LUXURY TARGET GROUP
Affluent class with tremendous purchasing power

High business class , high net worth

individuals(divided into inheritors
and experienced elite class)

Well travelled young population who have access to internet

industrialists, educated elite corporate professionals

BUYING BEHAVIOUR
Cost conscious
Gen Y and Z are seeking a better quality of life
thereby creating demand for luxury

Consumers do not want to compromise on the

quality of products they use on their skin and hair.

The advent of pandemic has shifted the buying

behaviour to more ‘natural’,’organic’

SSRN website; The art of branded luxury-Indian consumers buying behaviour by Rahela
Farooqi, Shadma Shahid
 The wedding industry, is one of the biggest in the country - more than 10 million
marriages take place every year. Accounting and research firm KPMG estimates
the wedding market to be more than $50bn

Cultural celebration mindset will not be compromised on

Revitalize to bring in new strategies or completely

diversify

Opportunities

Explore market with dual strategies both at an accessible

premium/entry level price point

Explore product categories at a cheaper price point

https://www.firstpost.com/business/future-of-indian-luxury-goods-market-uncertain-in-post-covid-19-economy-says-management-expert-8334221.html
 OPPORTUNITIES FOR SKIN CARE AND BEAUTY LUXURY PRODUCTS

Its easy for cosmetics and skin care brand to Brands belonging to India which sell tradition-
penetrate Indian market as even with the rich products as luxury have an advantage of
cultural differences, the skin care and cultural history.
wellness aspirations remain same.
Western countries have always
appreciated Ayurveda
OPPORTUNITIES- POST COVID-19
Change in consumer behaviour and consumer awareness Recently, the Uttar Pradesh government signed a “sister
city" agreement with Grasse in France—that is the place
where flowers get distilled into essences used in the best
Organic cosmetics will be chosen over conventional cosmetics
fragrances in the world.
New opportunities will rely on Phygital approach,
purposeful brands, environment conscious brands and
Sustainable production movements supported by brands. Dior uses extracts of jasmine sambac and
tuberose sourced from Tamil Nadu
https://timesofindia.indiatimes.com/city/chennai/Christian-Diors-magic-element-Madurais-
jasmine-flower/articleshow/16705978.cms OPPORTUINITIES:
https://www.livemint.com/Leisure/zAfH8zvg21gegk1zY2KOHI/Can-India-produce-a-luxury- INDIAN CULTURE
Hotel guests from ASEAN Countries have increased 17% over the last year.

 As of 2019, 4.2 crore jobs were created in the tourism sector in India, which was 8.1 per cent of the total
employment in the country. The number is expected to rise by two per cent annum to 52.3 million jobs by
2028.

The net annual sales for the luxury hotels industry amounted to approximately Rs. 5060 crore for the year
2011-12. The growth has been a spectacular 24.15% Year-on-Year (Indian Ministry of Tourism, n.d.).

OPPORTUNITIES
CHALLENGES
The luxury hotel industry faces direct competition
from a number of sources:
• Mid-segment hotels that are looking to scale up
their offerings at a cheaper price.
• A more significant threat comes from industries
offering alternative travel experiences. These
include firms offering trips on luxury yachts or
high-end adventure tourism like safaris and
mountaineering.
• The market for luxury goods and services is set to
contract 30-50% this year because of Covid-19
A rush of weddings in various parts of India
has emerged as a glimmer of hope for upper
upscale and luxury hotels in the country and
is spelling promise for the wedding season
later this year for the beleaguered hospitality
chains. This can be act as an opportunity
considering the billion dollar wedding
industry in India if taken advantage of. Amid
the pandemic this has actually been rescuing
the luxury hotel business in India.
https://www.ibef.org/industry/tourism-hospitality-india.aspx
https://economictimes.indiatimes.com/topic/Indian-luxury-hospitality
 Revenue in the Luxury Jewellery segment amounts to
US$1,247m in 2020. The market is expected to grow
annually by 11.0% (CAGR 2020-2025).

The world’s 20 fastest-growing luxury goods

companies. these are Titan Company Ltd., Gitanjali
Gems Ltd. and PC Jeweller Ltd. PC Jeweller Ltd.
Luxury Jewelry
- India | Statista Market Forecast
www.statista.com
Strategies that the international jewellery
companies like, Hammer & Sohne are using
is giving Indian customers themes and
designs that are essentially Indian in
character.
Intl jewellery brands have designs on India - Rediff.com Business

Opportunity

There is a growing need for individuality and

exclusivity as consumers get richer.
The notion that jewellery should be
considered as investment is fast Entry of new brands such as Tiffany and Co.
changing and has transformed to a will give opportunities to many other brands
fashionable accessory. to invest in Indian markets.
https://yourstory.com/smbstory/2020-outlook-indian-gold-jewellery-
www.rough-polished.com
investments-economic-slowdown
 SUBMITTED BY:

FEBA GEORGE
PRACHI GEHLOT
SHARANYA DEY
SHUBHANGI SWAROOP
SWATI SINGH