Revival of the Luxury Market in India

on March 31, 2016 / by

According to an article published in a leading newspaper daily last year, luxury brands that made exit from India a few years ago are on their way back. A rival of the economy, increasing purchasing power of the people and the FDI impetus has facilitated the growth of the luxury market in various sectors including automobiles, watches, fashion and apparel. The luxury watch market, in particular, is expected to grow by 20% each year, thanks to an upsurge in wearable computing and availability of Smartwatches that has captured the imagination of young buyers. 

India’s love for luxury brands has always been there. In the 80’s and 90’s, individuals who returned from abroad or had relatives visiting them flaunted imported goods and items. However, since the economic liberalisation in the nineties and emergence an 'aspiring generation' who does not shy from showing off their newly acquired wealth, the number of 'brand-conscious Indians' is only increasing. But there are some hurdles along the way, wherein many Indians hesitate to indulge in luxury goods as they are traditional twinned to save up for the future, education and marriage children, house etc.

Breaking that barrier has never been easy; however in recent time more and more people are beginning to have an eye for luxury goods and watches, because of change of perception towards life and acceptance of 'occasional indulgence'. One reason for the change is the growth of online retail space. There was a time when people were sceptical of buying goods online, however, this has become a fry-cry now. One of the biggest reasons for this is the attractive sale options that the buyers have online. For example, if you want to purchase Breitling Watches online, the chances of getting one at up to 50% discount or more is quite high. Buyers trust to purchase online that not just offer great discounts but also guarantees the authenticity of the product. However, when in a mood to indulge in an online shopping spree, they can simply browse through genuine and high-quality watch collection at Zimson Watches and other similar retailers.

In addition to that, gone are the days when owing just one watch for the call of the day. Today people want a collection or an assortment of watches with different colours, shapes and brands. Even watchmakers are aware of that and they are showcasing watches in varied design, style and occasion such as casual, business, aviator etc. 

While the economies in the west hit rock bottom between the years 2008-2010, countries in the east namely India, China and Russia continued to grow at a soft pace luring international watchmakers to set up shops in these countries. In a decade, India has become a formidable consumer for luxury watches. The roping in of celebrities like Shah Rukh Khan and Virat Kohli to endorse international watch brands like Tag Heuer and Tiscott respectively bears testimony to that fact. Here are some interesting facts about the Indian luxury watch market:

§ It is estimated that the Indian watch market is close to 5,000 crores
§ 20% of that or INR 1,000 crores makes up the luxury segment 
§ Swiss are leading the race with 60,000 swiss luxury watches are sold in India each year
§ Premium International brands are at close heels with prices as high as INR 8,000,000

Big brands like Breitling Watches, Rado, Cartier etc. are immensely impressed by India’s preference of luxury brands. However, the market is still at a nascent stage and there is a scope for improvement, which is why several watch companies are also hopeful for a relaxation in customs duty, which will further help them penetrate in the Indian markets.  

About Author: Meenu loves luxury brands and writes about them with ultimate finesse. She dabbles in the authenticity, variety and range of luxury products and introduces readers to some of the finest brands available.

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