Assocham: India's luxury market to reach 30 billion USD in 2018

On February 28, Assocham released a study that details expectations for India’s luxury market, including luxury fashion goods, to reach 30 billion US dollars this year and to expand fivefold in the next three years.

Assocham released a study that expects India’s luxury market to reach 30 billion US dollars this year - Assocham- Facebook

Last year, the Indian luxury market reached a revenue total of 23.8 billion US dollars and this year, Assocham has predicted that the figure will rise to 30 billion and continue to rise in the coming years. This makes India a promising market for international luxury brands.

Assocham cited a variety of reasons why the market is growing and these include the growing exposure of Indian youth to international brands, online and through celebrities and the upper class’ higher purchasing power in Tier 2 and 3 cities where many fashion brands are starting to expand into. Economic growth and urbanisation have created higher disposable incomes, states the report, and the growing presence of luxury brands are absorbing much of these funds.

The study states: "Well-travelled consumers and a stable economy, coupled with a young population with growing disposable incomes, spell good news for luxury brands across the world. With positive regulations and policies for the retail industry being put in place by the government, India is a market that can no longer be ignored by international brands."

However, the study also highlighted some problems in the Indian luxury market including a lack of suitable infrastructure, high tax rates, rental costs, and a parallel growing market of counterfeits. These factors are concerning for many international luxury brands that are considering entering the Indian market. "Thus, the Indian market represents huge opportunity for the foreign luxury players, but it needs to fix the existing loopholes," the study states.

Assocham India stands for the Associated Chambers of Commerce and Industry of India and it was founded in 1920 as a government organisation. The organisation is based in New Delhi and its premier apex chamber covers over four lakh companies.

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