Leading the luxury market
Apr 10 2017 , New Delhi
Promoting make in India by repositioning the country’s acumen in luxury products and services
The rapid rise in the global consumers in India has thrown up its unique set of challenges. According to the Confederation of Indian Industry (CII) report, Indian is fifth largest consumer market and its share in luxury sector is yet to seize top 50 for most categories.
The rising awareness of middle class for global brand helped luxury market in India to grow by 25 per cent to $18.5 billion, says the report.
This was revealed at a symposium launched by Taj Hotel Palaces Resort and Safaris in partnership with The Luxury League in the Capital. The innovative forum discussed how India’s incredible legacy of history, tradition and craftsmanship could be reimagined to brand it as a global producer of luxury products and services.
As Rakesh Sarna, managing director and CEO of Taj Hotels Palaces Resorts Safaris explains about social transformation of luxury sector: “India is fast becoming one of the world's fastest growth engines. By 2025, we are expected to have six global megacities, producing high quality luxury goods and services, and great talent. We have the potential to assume a leadership presence in the global economy. While we aspire to become the luxury capital of the world, we must also aspire for the prosperity of our people and address the rising economic inequity”, adding, “Luxury doesn't refer to 'brands' - it is the richness of society. We therefore must work together towards India's literacy and skill, which can create self-esteem, to power India's growth potential. Only then will have achieved the epitome of luxury as mankind should know it."
However, India has many challenges to overcome before it becomes a major market for luxury brands.
According to a Goldman Sachs research report, Brand investing for Indian consumer will be a big theme, urban mass will trade up into brands that offer the most incremental value, but may not readily jump to become mere aspirational brands. However the growth of luxury sector will be limited, it adds.
International fashion designer and founder of The Luxury League Ritu Beri feels “The essence of luxury lies in our history, culture and heritage, and there is no better way to appreciate India by celebrating our rich heritage. It’s my passion to promote the modern India to the world. I feel we undersell ourselves. We are the best in textile, embroideries, jewelleries and I must say India is a star abroad. We need to promote and position ourselves as the best in the world.”
Citing India's legacy of talented craftsmanship, Minister of Commerce and Industry Nirmala Sitharaman says: “Luxury can easily fit into the Make in India vision, due to the sector's phenomenal growth. India finds prominent mention among the 5 BRIC countries contributing to this industry, due to its high growth rate - we are anticipated to see a 7.6 per cent GDP in 2018”
She further added that it was India's royalty who were great patrons of art. Today, the finest artisans are dependent on MNREGA wages. The luxury segment must identify from across India people of high calibre, and help in branding, marketing, and promoting their work.