Luxury goods market in India is expanding well. Last one decade has seen a big change in the lifestyle of Indians resulting in an increase in the demand for global luxury brands. Although many international names have entered the Indian market and they are facing issues because of the economic diversity in the country.
Luxury goods market in India
Economic growth leading to urbanisation is helping luxury brands to make money but Indian brands are understanding the market because they know the psychology people living in India. With positive rules & regulations for the retail industry in India, luxury goods market can no longer be ignored by international brands.
Increase in demand in non-metro cities
The demand for luxury items is not only increasing in the big cities, the non-metro cities are also helping in increasing sales of expensive products. Also with the entrance of many new brands, buyers now have multiple price options to choose from which is a good sign.
Affordable luxury products
One thing that has surely helped in the growth of the luxury market in India is the increase in availability of affordable luxury products. Brands are trying to cover the not so rich people of the country too as they contribute to the economy of the country in a big way.
Evolution in Internet & Technology
The Internet has opened the minds of everyone. The interest area of people living in small cities is changing because of the content they read and watch on internet. The first step of creating a demand for something is by increasing the knowledge of that product among buyers and internet has done that amazingly.
Problems for Luxury market in India
Yes, Indian luxury market is looking promising but there are loopholes that need to be filled. Lack of suitable infrastructure, high tax rates and growing market of counterfeits are some major issues that are a matter of concern for brands that are looking to target India.
Future of the luxury goods market in India
According to a study conducted by Assocham, Indian luxury market is expected to expand five-times in the coming three years and the number of millionaires in the country are expected to multiply 3 times in next five years.
