How luxury brands should target India’s super-rich
Despite the economic slowdown across the world, the size of the global luxury market is estimated to be around $2 trillion. The BRICS markets, more specifically China and India rather than Brazil and Russia, have been in the spotlight for the past few years.
However, luxury marketers in China last year faced many challenges relating to luxury consumption, regulatory issues, tariff structures, currency reasons and a severe clamp-down on the gifting culture. Stores opened in a hurry by brands across categories began to shut shop.
As a consequence of the Chinese luxury pullback, the entire global luxury industry was severely affected. All brands once again are back to devising a fresh strategy for future growth.
India: Best of BRICS
A quick analysis across the BRICS nations finds that :
- In Brazil, the economy is in recession. There is no clear revival visible as of now.
- Russia is the worst-affected of the lot due to the commodities slump and drops in currency.
- China is battling a growth slowdown.
- In South Africa, economic growth has decelerated steadily over the last few years. Industry analysts see limited growth potential.
- India, alone, is expected to emerge as the world’s fastest-growing major economy.
So is there an India opportunity for luxury brands?