Fitur (International Tourism Trade Fair) arrived in Madrid last week, and with it, ever increasing new business opportunities are available in many countries and sectors. We, like every year, are there investigating what we will face in 2017, and are focusing on what is and what will be in the coming years, the real treasure of the luxury market, the last giant Asian market, with 1,300 million inhabitants and nothing less than 370,000 millionaires (facts estimated for 2020 according to WealthInsight we should take it more seriously.
This gem is: India.
India has had a tendency to replicate the development model of the Chinese over the last number of years and therefore, according to the estimations of The World Bank, in the next two years, it will become one of the highest consumers of luxury goods, so much so, that although currently it only accounts for 2% of the market, it is estimated that in the short term, it will become one of the 20 most important markets in the sector worldwide.
Today, Hindus tend to look for the majority of luxury goods outside of India’s borders. They search for European products more than the classical brands and currently they can only get them in some five star hotels and exclusive shopping centres in New Delhi or Mumbai. For them, luxury comes from Europe, and therefore for Europe, the opportunity is in India. However, this reality is not a rosy path, and it is imperative that we understand the consumer, the particular culture of luxury in the country, and the entry barriers.
Some fashion brands have been intelligent enough to position themselves through Indian weddings, surrounding the high-spend weddings with spectacular saris, like those made by Hermes, or with bags and shoes in the case of Jimmy Choo or Gucci… These brands have understood perfectly that this huge consumer market continues to have huge respect for its traditions and culture.
That is all well and good but, what if I have to go to a multi-brand establishment? What if I don’t know the market and how to open my own shop? To not be familiar with the market can cause risks, especially when the state ensures that foreign goods do not exceed 51% in multi-brand stores, to protect domestic producers. Who are you going to share space with? Who are you going to associate your brand with? What risks does this have on your brand positioning and business?
At LuxStyle Consulting, we grasp the concept that in the Hindu market, Europe is luxury, and we reinforce the growing demand that brands of the few established firms there search for. This offers a big opportunity to Spanish brands that want to position themselves in a growing luxury market. The first to arrive will do twice as well. Good brand positioning, supported by a quality product and appropriate communication will occupy this seat, that until now, has been empty in the luxury market. Why not have it be your brand?
At LuxStyle Consulting, we are specialised in the commercialisation of luxury products and the opening in markets, and we, like any other business destined to be profitable, have centred our attention on a potential market that in 2020 will be worth more than €3,650 million. We would love to go hand in hand with more people.
Do you consider your product to have the potential?
Contact us at +353 868 339 070 +34 91 7933515, and we will work together!
Marta Rueda (Mrs. Shabby)
Translated by Clare Hill
LuxStyle Consulting, Luxury & Fashion Consulting in Dublin Marbella & Madrid