Indian Fashion Market

 

Indian luxury market amounted $4.8 billion (Rs 25,440 crore) in 2010. Luxury brands like Gucci and Hugo Boss had three stores in India as opposed to 35 and 86 respectively in countries like China. Delhi and Mumbai account for most of the stores.

 

Whenever a brand comes in to the Indian market it talks of localising, customising to appeal to the local customer. But in this case, the challenge becomes even more interesting, as they have to adapt to the two markets to change the game.

 

Though both Delhi and Mumbai are very cosmopolitan they have different influencers in terms of neighbourhood and activities. Delhi-Mumbai luxury customers are divided on the basis of their popular culture. Delhi is the city of power and opulence, while Mumbai is the film city more exposed to international influences.

 

And this reflects in the way they consume luxury. Even though there are no direct estimates, Delhi outpaces Mumbai in terms of luxury sales. North Indians are more flamboyant and ostentatious in their display of wealth, hence they shop for luxury items more openly

 

Delhi consititutes50% of India’s luxury market in sales. It is the centrepoint for the whole of north India, especially towns in Punjab, Haryana and Uttar Pradesh, the centre for New Money. Not price sensitive, so the real luxury brands work here. The main consumers here have old money i.e inherited wealth. Luxury (Owning a luxury brand) is a status symbol here.The key saleshere comprisejewellery and accessories.

 

DLF Emporio is the main luxury hub here, but markets like Khan Market, Mehrauli Gurgaon Road and complexes like The Crescent at the Qutub can also be a luxury shopping hub.

 

Mumbai constitutes30% of India’s luxury market in sales.Being the centre of Bollywood, movies and filmstars define street style and the city has a higher sense of fashion. It’s a hub for high-street brands as it is price sensitive. Its main consumersarefragmented. North Mumbai (near the airport) and Central is New Money, while South (Nariman Point, Malabar Hill and Colaba) accounts for the Old Money consumers. Luxury (Owning a luxury brand) gets you noticed here. Its key salescompriseclothes, accessories and jewellery. The Palladium and Phoenix Mills are the main luxury hubs of Mumbai.

 

In Delhi, which includes new money hubs like Punjab, Haryana and Uttar Pradesh-the customer shows a preference for brands with visible logos and distinguishing patterns. In its appetite for luxury, Delhi definitely outweighs any other city in India.

 

The capital is the hub for Old Money consumers. Mumbai loses out in luxury stakes as it doesn’t have the advantage of a large consumer base from satellite towns.

 

Mumbai luxury consumers are fragmented on the basis of purchasing trends: the north (near the airport) and the central part where most of the New Money lives, and the south (Nariman Point, Malabar Hill and Colaba) which accounts for the Old Money.

 

Delhi is the largest market so far but Mumbai has shown a faster growth over the past two years.

 

Delhi works better as it has better options for real estate available. There’s more space available. The Mumbai buyer is still partial to affordable luxury. While Delhi gave us the first luxury mall, the only high-street in the country is Bandra Linking Road.

 

While the overall market for luxury is looking up, the real change will be visible in 2014 as more real estate options come up. But the real game-changer, is the the rise of the Tier-II and southern cities like Hyderabad, Bangalore and Chennai as the new hot-spots for luxury and fashion retail.

By Sasha Madan

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