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Despite potential, India’s luxury market continues sluggish progress

In a recent review of the local luxury market, Forbes India has interviewed some of the key players in India’s emerging luxury market. Among the challenges still faced by local luxury companies are:

Darshan Mehta, president and chief executive of Reliance Brands (Zegna, Paul & Shark, Brooks Brothers, Thomas Pink)

“The challenge in India is that most brands can only come through an India partner. While brands make their share of money by selling products to the India partner, making profit is a challenge for the India partner, who has to take care of taxes, rentals and salaries

Indian customers tend to use physical retail stores as catalogues to browse through products, and end up buying goods from either London or Dubai due to the price difference which is sometimes as significant as 30 percent. We can’t have an up-charge of more than 5 percent to 10 percent compared with London and Dubai. It is a myth that one can’t make money in luxury”

Charu Sachdev, Founder and CEO, TSG International (Chloé, Alexander McQueen, Diane von Fürstenberg, Stella McCartney and Yves Saint Laurent)

“There is tremendous wealth in the country; it’s sad that people spend it overseas when they travel. Taxes are very high in India and that makes products expensive. We are reducing our margins as much as possible to be on par with global rates”

Adapted from Forbes India

Ermenegildo Zegna, Made to Measure Sartorial Collection, Fall 2014

 

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