The affluent Indian's desire for 'the good life' has lured the world's biggest luxury brands to the country despite the real estate and regulatory quagmire
India continues to miss a Rodeo Drive or an Avenue Montaigne—we’re not quite there yet—but barring a road dedicated to über luxury, there is little that the upscale shopper here can complain about. Walk into Delhi’s DLF Emporio in Vasant Kunj or Mumbai’s Palladium in Lower Parel—the top-of-mind shopping destinations—and there’s a veritable smörgåsbord of options to feast—or even just snack—on.
Luxury has made its home in India. From Armani to Chanel and Ermenegildo Zegna to Vacheron Constantin, renowned global brands have set up shop here. And not only in the obvious categories of apparel, accessories, home decor, watches, wines and jewellery, but also in fine dining, concierge services, travel and yachts. According to a February report by KPMG-Assocham, India’s luxury market grew at a healthy 30 percent to reach $8.5 billion in 2013, and is likely to grow at 20 percent to $14 billion by 2016. The report states that this growth has been primarily driven by lifestyle segments such as fine dining, gadgets, hotels, jewellery, personal care and wines, as consumers refused to compromise on the ‘luxe’ life.
India’s luxury potential has attracted several brands to the country in recent years. Some others such as Godiva Chocolatier and Fabergé Jewellery plan to start operations shortly. Additionally, some firms such as Villeroy & Boch and Bvlgari, which had earlier exited India, are showing renewed interest in the market. This momentum has been driven by an ever-increasing base of ultra high-net worth households (HNHs), which are likely to grow at 27 percent till 2017-18.