GROWING LUXURY FASHION MARKET IN INDIA “Give me the luxuries of life and I will willingly do without the necessities” – as said by Frank Lloyd Wright. The Indian luxury fashion market has been growing at a sound rate in the recent years. If one goes by facts, according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM), the luxury market of India will see an inflow of 35 billion dollars in the present year and is supposed to double by the end of year 2020.The next year is expected to see a growth of approximately 27% rate. According to Euro monitor, Indian luxury market is expected to double from 132 billion to 236 billion rupees, stronger than Australia & Singapore. With Indian economy booming at a rate of 7.3% and increasing FDI in the country, the living standards of people are improving and more & more people are indulging in luxurious experiences. Number of millionaires is increasing in the country since 2011, according to the Kotak Wealth Management report, from 62,000 to 137,100 and with that demand for luxury items is also increasing. India is emerging as the fastest growing market for luxury goods. Few of the other reasons that are responsible for the growth of this sector are; adopting western culture, increased internet access and awareness about luxury brands, more online retailers and marked up income of the people. Today, everyone is attracted towards the western culture & tradition so much so that it has a huge impact on our lives and what we spend on. Looking up to celebrities & models for what they wear and carry, people want those things in their closet to be fashionable. Internet has broadened the horizon of people by connecting them to things which were impossible otherwise. More than 75% internet users in the country are youth. Internet makes them aware of what’s in trend and what’s not. With more and more access to internet and growing retailers on e-commerce portals, people are now more aware of fashion brands. With the growing popularity of online shopping, retailers are making the most of it, as a lot of customers now like to shop at their own comfort of the house without sweating outside. Mostly, every brand nowadays has an online portal to attract a lot of new customers. These days’ people spend an average 25% of their time online so; social media has become an important tool to tap new clientele. Luxury fashion goods have been mostly associated with multi-millionaires or celebrities. Luxury goods have been a privilege for the rich and out of the reach for the ordinary people for years. But now the things are changing with the arrival of
startups dealing in online luxury fashion shopping, providing customers the benefit of sitting at home and shopping varied luxury brands at affordable prices. Online websites like Darveys.com, Exclusively.com and Luxepolis.com deal in luxury brands at lower prices. Such startups are targeting upper class people who spend about 40% of their income on luxury items. One such website called Darveys.com has a tie up with 300+ international boutiques and sells 70+ designers. The website gives authenticity guarantee of two times the price in return and lowest price throughout India. The site deals in men, women and even kid’s luxury items. Mostly the users of such luxury brands are women but now men also contribute significantly in this sector. With such opportunities and growth, it is expected that Indian luxury market is on a progressive road and India can be the focus for higher end brands in the coming years.