Is the luxury goods market in India staring at a downturn? If you go by a recent media report, haute is exhibiting propensity to go up – with no exception – from handbags to cars – the market is in fact expanding. This is something very significant from the point of view of gifting industry’s prospects that relies so much on the demand-supply equation. The high end items like a Jimmy Choo stiletto are a ‘must have’ for an affluent buyer class, soaking in their new found status.
- Genesis Luxury Fashions officially markets Jimmy Choo and Canali here in India. According to them, the luxury market has steadily inched up in the last year and they are equally optimistic about maintaining a growth rate of about 25 per cent of the last year in 2012 as well.
- The Cartier representative reveals about 100 people cutting across age groups visit the store every day, and a majority of them already have decided which watch to get for themselves.
- At the Christian Dior store, footfalls touch the 100 mark on the weekend. In keeping with the trend, sales rose roughly 20 percent in 2011 over the previous year, according to the store manager.
Even as high-end luxury has started taking deep roots, it’s the brands a notch or two below luxury that have felt the pinch a bit. For example, watches in the range of Rs 50,000- Rs 1.5 lakh have felt the impact of stock market crash, according to the General Manager of Kapoor Watch Co, Parvinder Singh, who mentions that these customers rely on the equity and real estate market to make money.
On the contrary, niche brands that belong to a higher price bracket of Rs 4 lakh onward haven’t been apparently affected because their clientele is from the moneyed elite. This segment continues to thrive and so also the luxury goods in the higher bracket. The gifting industry needs to align itself to this scenario…