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International Luxury Brands to Launch in India in 2007
Jun 21, 2007

India will see luxury brands from international market such as Versace, Gucci, Dolce & Gabbana, Armani etc hailing to India and setting up their shops in 2007.

2007 will see luxury brands from international market such as Versace, Gucci, Dolce & Gabbana, Armani etc hailing to India and setting up their shops in India in malls, which will be catering to luxurious, finest lifestyle brands only. With four-five malls serving to your luxury needs coming up, a flood of global lifestyle or luxury brands is set to sway away India this year.

As per a latest survey, individual households in the bracket of high net income in India are at 1.6 million, increasing at an annual growth rate of approx 14-15%. With the luxury brand market valued at Rs 64,000 crore, the picture is going to get better only, as per the news published on The Financial Express.

There is a niche segment in the Indian market for household items of good quality. The stable growth in customer's purchasing power and low penetration levels in urban and especially in rural region have attracted international companies in this business. Additionally, liberal strategies for foreign direct investment and foreign equity participation have also given a boost to the sector. Now the international companies are competing with the domestic companies to obtain the market share in this sector.

Stringent competition in the household market has also put pressure on the profit margin. Players are focusing on rising volume to attaining profitability, that in turn needs deeper market penetration through well-developed channels of distribution. Household purchases are influenced by the product cost and its affordability, and the cost acuity allied with the product.

Also, Indian consumers (who are borrowers) inclined to spend more on the products that show their wealth or desired social class.

As per a research analyst at
RNCOS, "The demand for household commodities is likely to increase exponentially in coming time and it is the right time for any foreign company to bring in quality goods at competitive prices to cater the increasing demand of household commodities in India".

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