1. Luxury market
• The Indian luxury market grew at a healthy rate of 30 per cent
in 2013 to reach USD8.5 billion in 2013. It is likely to continue
growing at a healthy pace to reach USD14 billion by 2016.
• The sector includes luxury products such as apparel,
accessories, home decor, pens, watches, wines and spirits,
and jewelry; services such as fine dining, concierge services,
travel, hotels and spas; as well as assets such as fine art,
yachts, and automobiles.
• Growth was driven by lifestyle segments such as fine dining,
gadgets, hotels, jewelry, personal care and wines; growing at
30 to 35 per cent as the luxury consumer refused to
compromise on the ‘luxe' life.

2. Growth of Luxury Market
0
2
4
6
8
10
12
14
16
2012-
13
2013-
14
2014-
15
2015-
16
2016-
17
Column2
Column1
Market size(in billion)
Column3
30%
64%

3. LUXURY Through data and
Interpretations.(year 212-13)

4. Huge potential in Indian Market
• Luxury is still in its nascent stages as only 8-
10% of the Indian population in metros is
exposed to such brands.Link:

6. 0 5 10 15 20 25
Luxury assest
Luxury retail
Luxury Service
Growth(in %)
Growth(in %)

7. Luxury Retail market
1.What is it
2.What it is composed of
3.Growth of luxury retail market.

8. • Apparel and accessories; pens; home decor;
watches; wines & spirits; jewellery; services
like spas, concierge service, travel & tourism,
fine dining and hotels; and assets like yachts,
fine art, automobiles.

9. Compound Annual Growth rate Luxury
Retail market
ApparelGems and JweleryCosmetic Footwear Handbag
Compound Annual growth rate of each sector of Luxury
retail market
Compound Annual growth
rate of each sector of
Luxury retail market

10. Luxury Apparel market

11. Trends in Apparel Market
• High degree of ‘Indianisation’ and ‘localisation’
• ‘Indianisation’ and ‘localisation’ are increasingly becoming differentiators of
success with new consumers in new markets. Luxury brands no longer deal with
just the elite and well-traveled urbane customer. New segments with varied
profiles may now constitute potential targets for luxury brands; examples include
segments such as farmers selling their lands to developers and entrepreneurs
experiencing windfall gains.
• Brands are responding by introducing local, Indian elements to their products -
lifestyle brands are signing up with Indian designers, hiring relationship managers
who speak local languages and tweaking offerings for Indian festivities, weddings,
to name a few.
• While several luxury players have launched wedding ranges in India, many are
increasingly targeting Indian weddings with custommade products.

12. Luxury apparel MARKET
• Cumulative Annual growth rate -12.65 % over
the period 2012-2016.
• …referenes-
• Global brands in Indian Market-
• Jimmy Choo
• Bottega Veneta changed hands from the
Murjanis to Genesis Colors and Springfield in
order to sustain growth.

13. Indian brands launching International
brands-
• Shoppers Stop, which had launched foreign
brands like MAC, Mothercare and Austin Reed
among dozen of global brands, and now plans
to add about half-a-dozen international labels
soon.
• S Kumars group, which tied up with Italian
brand Oviesse this year, is in talks with other
international brands. Nitin Kasliwal, managing
director of S Kumars Nationwide (SKNL).

14. …..contd
• "Indian retailers, tying up with international brands,
are giving them an insight of the Indian market and
taking the responsibility of marketing on franchisee
basis, which is being preferred by the overseas brands,"
says Rahul Mehta, president of Clothing Manufacturers
Association.
• One of the key factors contributing to this market
growth is the increasing urbanization in India. The
Apparel market in India has also been witnessing
increasing online retail sales. However, the increase in
the number of counterfeit apparels could pose a
challenge to the growth of this market.

15. Indian Luxury Footwear Market

16. Growth of Indian Footwear Market
• A February 2012 Assocham report said that the Indian
footwear industry is growing at a compound annual
growth rate (CAGR) of about 15% and is likely to reach
approximately Rs 38,700 crore by 2015 from the
current level of around Rs 23,600 crore
• References :http://www.bestofluxury.com/luxury-
news/rise-of-luxury-shoe-brands-like-jimmy-choo-
roger-vivier-and-others-in-indian-fashion/64

17. Luxury Footwear Market
• . The reasons are plain vanilla: growing fashion
consciousness, increased disposable income
among India's urban middle class (45% of overall
footwear market), low production cost, blah blah.
But the real story is the rise of the humble shoe
in the fashion food chain.
• Brands-
• Bottega, Veneta,Lanvin, Stella McCartney, Jean,
Paul Gaultier and Moschino, Carlton Shoes,
• International shoe brands

18. Reasons for growing Footwear market
• The Assocham survey noted that buyers upgrade
their shoe collection every two months and
usually spend about Rs 6,000-8,000 every four
months on branded footwear. Business
consultancy Tecnova India — it assisted Christian
Louboutin enter India by surveying the market for
them — found out that while women purchase 1
branded pair of footwear per month, men
purchase a pair per quarter.

19. …contd
• Women are buying shoes depending on the
style factor and unique design sensibilities.
• For men, comfort and necessity are the driving
factors.
• The opening up of luxury malls in major cities
has seen top international brands marketing
luxury loafers and footwear, launching their
outlets.

20. …contd
• International brands are setting up fancy showrooms in
India, wooing the affluent Indian consumer, domestic
producers quietly churn out footwear that are sold
around the globe by top brands.
• Example-Leading international shoe brands including
Reebok, Nike, Adidas, Puma and Fila have been
sourcing many of their products from Indian companies
for years. M&B Footwear, a leading manufacturer and
also distributor of international brands – including Lee
Cooper, Rider, and recently, Merrell – is one such firm
that produces footwear for international brands.

21. Luxury Cosmetics Market

22. Success Story in Indian Cosmetic
market
• Manufacturing success with luxury ayurveda:
Forest Essentials
• Forest Essentials (FE) was established with an aim to promote
traditional cosmetics in a modern way. While various other
ayurvedic products were available when it was launched,
• there was a need for ensuring quality by sourcing ingredients
in an appropriate manner
• FE’s model based on ayurveda and the absence of any Indian
brand in this ‘prestige space’ acted as a catalyst for its entry in
the country. The company started by offering soaps and oils
with high-end global packaging, which instantly struck a chord
with consumers.

23. Key players in Luxury Market
• India’s luxury potential has attracted
• several luxury players such as Damiani
• and, Royce over the last few years, and
• several others such as Godiva Chocolates
• and Faberge Jewellery plan to enter the
• Indian market. Additionally, brands such
• as Geox Group and Villeroy & Boch, which
• exited India previously, are now showing
• renewed interest in the country’s luxury
• market3.

24. Luxury Handbag Industry in India

25. Luxury Handbag Industry in India
• Rise in the personal disposable income, increase in the
number of working women, widening exposure through
internet, development of retailing and specialty stores and
growing acceptance of handbags as a lifestyle product have
contributed significantly to handbag industry in India.
• The handbag market is expected to grow at a CAGR of 17.1%
from FY’2013-FY’2018.
References: http://www.news.kenresearch.com/post/85110895488/india-luxury-
handbag-market-research-report

26. ..contd
• It is majorly dominated by unorganized segment contributing .
Da Milano is the largest contributor in the overall industry as
well as in the organized handbag market in India
• Online handbag sales have showcased an increasing trend by
growing at a CAGR of 43.1% from FY’2008-FY’2013. An
increase in the growth of e-commerce with the facilities of
online shopping is also expected to contribute significantly to
the growth of organized market in the coming five years.

27. Luxury Jwelery Market

28. Gems and Jewelry Market
• Introduction
• Gems and Jewellery sector forms an integral part of the Indian economy as it
forms a major component of the export-led growth.
• The industry has been growing at a good pace over the last few years and
contributed for 14 per cent of the revenues in India’s total merchandise exports in
2011-12.
• Jewellery is a luxury component and the Indian luxury market is growing at a
compounded annual growth rate (CAGR) of 25 to 30 per cent per annum.
Jewellery, the largest segment of the luxury market, accounts for about 50 per cent
of the total luxury products sold in the country.
REFERENCES:www.ibef.org/archives/detail/b3ZlcnZpZXcmMzExMDgmNDM4,
www.ibef.org/industry/gems-jewellery-india.aspx

29. …contd
• India is considered to be the hub and one of the most competitive
jewellery markets in the world owing to its lower costs of production and
availability of highly skilled labour.
• Industry Dynamics
• The gems and jewellery industry majorly includes sourcing, processing,
manufacturing and selling of precious metals and gemstones such as gold
platinum, silver, diamond, ruby, sapphire, among others.
• The highly fragmented sector comprises of more than 500,000 gems and
jewellery players across the country, with the majority being small players.
Though organised retail accounts for about 4-6 per cent of the entire
market, Indian is increasingly getting acclaimed as an international
sourcing destination for high-quality designer jewellery.

30. …contd
• Global companies such as Walmart and JC Penney source jewellery from
India.
• Some of the major brands in the Indian jewellery segment are Gili,
Tanishq, Carbon, Oyzterbay and Trendsmith while companies like Reliance
Retail, Damas Jewellery, Gitanjali Gems Ltd., Swarovski, Diamond Trading
Company, Vardhaman Developers, Dubai-based Joy Alukkas, Viswa and
Devji Diamonds and Gold Souk India are major players in the Indian gems
and jewellery retail sector.

31. • "Gems and Jewelry Market in India 2012-2016" has predicted a
compound annual growth rate of 14.93% for gems ans jewelry
market in the country. The report has also stated that India will turn
out to be the key driver of the global jewelry market in 2014.
• According to the report, the key factor contributing to the market
growth is the increasing demand for gold jewelry by Indian
consumers. The Gems and Jewelry market in India has been
witnessing the entry of jewelry retail outlets in large numbers.
However, the rising gold prices could pose a challenge to the
growth of this market.
• The report further states that the highly fragmented and
unorganized nature of the country’s jewelry market poses great
challenge. The industry is dominated by more than half-million
small players. A good number of these smaller players do not
adhere to gold purity standards.

32. ..contd
• One of the recent trends being witnessed in the market is the
increasing purchase of jewelry through online stores. The online
jewelry stores are managed by organized players. Currently, the
online jewelry stores are in a nascent stage of growth. In 2012, they
accounted for less than 10 percent of overall sales of branded
jewelry. The consumers in urban areas are willing to purchase
jewelry online as it is easy, safe, and convenient. Internet shopping
in India, especially in urban areas, is expected to rise drastically.
• Currently, India is the world’s largest market for jewelry. The
demand for jewelry made of gold is expected to remain robust in
2014, the report states. The country will continue to remain as one
of the largest consumers of gold jewelry, where majority of gold
jewelry purchases are either towards aesthetic purposes or as
investment option.

33. GOLD Market in INDIA
• Gold and diamond are two major components of the gems and jewellery
sector. India is the largest consumer of gold, accounting for over 20 per
cent of the total world gold consumption and contributes 80 % in total
gems and jwelery amrket.
• A substantial portion of the gold jewellery produced in India is consumed
in the domestic market only.
• World Gold Council (WGC) has formed a separate private company in India
to take up activities on a larger scale in the Indian market including
entering into commercial set-up with banks and gold industry players in
the coming years. The corporate structure will legally help WGC remove
the disadvantages of operating as a liaison office.
• Currently, the Reserve Bank of India (RBI) prohibits any liaison office from
entering into any commercial activity in the country and it could only
promote the existence of parent entity and not any individual products of
any Indian entity.

34. Diamond Market in INDIA
• Diamonds
• India is the world’s largest hub for cutting and polishing of diamonds wherein the
cutting and polishing industry is well supported by Government policies and the
banking sector with around 50 banks facilitating nearly US$ 3 billion of credit to
the Indian diamond industry.
• The country is looked upon as the world capital for diamond polishing and
processing as its artisans are skilled in working upon small-sized diamonds. At
present, India exports 95 per cent of the world’s diamonds, according to data
released by the Gems and Jewellery Export promotion Council (GJEPC). A
predominant portion of the rough, un-cut diamonds processed in India is
exported, either in the form of polished diamonds or finished diamond jewellery.

35. Companies investing in INDIA in
Diamond Industry
• Leading jeweller Tiffany & Co is planning to invest Rs 100 crore (US$ 15.78
million) in order to set up a diamond processing unit in Maharashtra. The
facility, to be located inside the Special Economic Zone (SEZ) at the Multi-
modal International Cargo Hub and Airport at Nagpur (MIHAN), would be
the first major investment in the country.
• The Maharashtra Airport Development Company (MADC), a special
purpose company of the Maharashtra Government, is the project
developer.
• World’s largest diamond miner De Beers, has for the first time, introduced
rough diamonds in the forward contract for its ‘Auction Sales’ (earlier
Diamdel) customers. Though the clauses are yet to worked out, the new
contract of rough diamond purchase is expected to give an opportunity to
customers to determine the volume of goods they intend to purchase.

36. Exports
• Exports of gold jewellery from India stood at US$ 441.4 million
while the total gems and jewellery exports amounted to US$
2.49 billion in July 2013, the GJEPC reported. Silver jewellery
exports increased by 184 per cent to US$ 109.69 million.
• Gems and Jewellery accounted for 17 per cent of the total
exports from India in 2012-13.

37. Government Initiatives
• The Government of India (GoI) plans to promote the gems and jewellery
sector in a big way through its New Foreign Trade Policy (2009-2014).
Some of the important components of the policy are discussed below:4
• The number of days for re-import of unsold items in the case of
participation in an exhibition in the US has been increased to 90 days
• Duty incidence on gold jewellery exports has been neutralised while duty
drawback on such exports is now allowed.
• Duty free re-import entitlement for rejected jewellery shall be 2 per cent
of free on board (FOB) value of exports

38. …..contd
• The value limit of personal carriage has been increased from US$ 2
million to US$ 5 million in case of participation in overseas
exhibitions. The limit in case of personal carriage as samples for
export promotion tours has also been increased from US$ 0.1
million to US$ 1 million
• The Government of India has allowed 100 per cent foreign
direct investment (FDI) in gems and jewellery sector through the
automatic route
• In order to encourage more investments in the sector, gems and
jewellery SEZs have been set up. The names of operational SEZs in
the sector are SEEPZ Special Economic Zone, Mumbai; Manikanchan
SEZ, West Bengal; Jaipur SEZ; and Hyderabad Gems SEZ Ltd. Further,
formal approval has been given to 13 SEZs in the sector — three
have got in-principal approval and seven have been notified, as per
the SEZ Board of Approval statistics.

39. •Growth drivers of
Luxury Retail Industry

40. 1.Increasing no of billionaries
• India continued to hold its position in the global
billionaire list with a contribution of 55 billionaires,
accounting for a total networth of USD194 billion in
2013 as compared to just nine billionaries in 2004.

41. 2. Urban India Average Household
income

42. 3. An ever - increasing and ever-
evolving base of consumers
• The growth of the Indian luxury market is
driven by an ever-increasing base of ultra
high-net worth households (HNHs), which is
likely to grow at a CAGR of 27 per cent
through 2017-18.
• Rising income levels and aspirations have led
to a growing segment of potential luxury
brands.

43. 4. Increase of High Net worth
individuals.
0
50000
100000
150000
200000
250000
300000
350000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
No of HNH
No of HNH
CAGR=27 %

44. 5. Growing Focus beyond Metro and
Tier 1 cities.
• Home to nearly half of the country’s ultra HNHs,
India’s non-metro regions offer lucrative growth
opportunities for luxury segment players.

45. …contd
• Players are overcoming the challenge of
Infrastructure through innovative models and
local tie-ups in order to optimise investments and
minimise risks.
• Around 70 per cent of luxury handbag player
Judith Leiber‘s customers now come from tier-II
and tier-III cities without depending on
storebased expansion.
• Its local partners showcase select products to
potential consumers through exhibitions

46. 6.Prefernce of Indian consumers to
shop in India

47. 7. Government regulations
• The Indian Government has allowed 100% foreign
direct investment in single-brand retailing and 51% in
multi-brand retailing, which is likely to see more
foreign luxury brands enter the country, with new
players opening up their first outlets in major cities
such as Mumbai or New Delhi.

48. Top Luxury Retail Market Cities
• 1. Delhi/NCR
• 2.Mumbai
• 3. Bangalore
• 4.Chennai
• 5.Kolkata
• 6.Hyderabad
• 7.Pune

49. •Challenges faced by
Luxury Retail Market.

50. 1. Idiosyncratic Market
• India is truly an idiosyncratic market for a vast
array of social, economical, cultural, and
political reasons. Even such global giants as
Coca-Cola and GM did not meet with success
when they entered this market, due largely to
a lack of understanding about Indian
emotions, habits, and lifestyles.

51. 2.Luxury infrastructure still a
constraint
• The luxury goods category is still fragmented and
only a few international players have entered
India. However, these luxury players are already
facing problems in terms of a lack of luxury
infrastructure in India, as luxury shopping centres
are restricted to major cities and only a small
number of players have entered the country. As
more luxury players enter India, limited
infrastructure could be a major constraint. The
luxury players that are present are already
targeting high-end shopping streets in major
cities to overcome a lack of luxury shopping
centres.

52. 3. Luxury goods restricted to major
cities of India
• Most of the larger brands are present in metro
cities.
• But there is huge opportunity avaialable in tier
2 and tier 3 city market, where brands can
extend their market and manage their
portfolio accoriding to spending limit and
consumer tastes.

53. 4. Cost-conscious mindset of buyer
• Closet consumers-People who look at the cost
and value even when shopping for luxury
products.
• The inner conflict between a middle class
mindset and the globally rich income level,
between conspicuous consumption and a
level of luxury which is a reward for hard work
shapes what we call the closet consumer,"

54. Internet retailing emerges as a sales
channel
• Global luxury brand operators are targeting
internet retailing as a future emerging channel for
their brands. Rising rentals and operating costs
are major factors, while the need for well-trained
staff to cater to high net worth individuals is
another factor that makes internet retailing more
attractive for players. Luxury goods players can
also offer discounts and promotional campaigns
limited to internet retailing channels to promote
purchases.

55. Sahara entering into Luxury market.
• Sahara Group, the embattled Lucknow-based
conglomerate, plans to launch an Indian luxury
chain to sell 'Made
• in India' luxury goods in international markets
such as the US and the UK. “The focus is to create
the first Indian premium
• luxury brand, which will expose the global
consumer to India as never seen before,” said
Chandni Roy, who is
• spearheading the initiative to open luxury
lifestyle stores across the globe (Rathore, 2013).

56. Conclusion
• India is one of the growing market for Luxury
retail in India that recently accounts for only
1-2 % of total luxury retail market of world.
• It is a big opportunity for brands to target this
untapped market with supportive changing
taste for Luxury brand as well as rising income.

57. • References:
• Lifestyle products-
http://www.reuters.com/article/2014/01/16/i
ndia-retail-idUSL5N0KQ3M220140116
• http://www.cbpmag.com/emerging-markets-
the-global-luxury-market-growth/
• KPMG-ASSOCHAM 2014 report.