tailieunhanh - MARKETING OF LUXURY GOODS IN INDIA – WHAT AN IDEA !!

India offers a dynamic retail landscape, which is very attractive to the retail companies. It has the potential to become a strategic retail hub. Given the huge population of India, a burgeoning middle class, which is getting more and more affluent, and a changing lifestyle, it is a literal haven for retail companies. Retail spending in India has been growing at a double digit figure. It is estimated1 that Private Final Consumption Expenditure (PFCE) stands at Rs. 26,07,584 crores in 2007–2008 as compared to the previous year when it was Rs. 23,12,105 crores. This makes it a growth of . | MARKETING OF LUXURY GOODS IN INDIA - WHAT AN IDEA Abstract The paper examines the current trend and growth of the retail industry in India. The focus is more on the organized retail and its performance. It also looks at the luxury goods market and how the goods sold are different for men and women. Considering the increasing numbers of HNWIs in India this market is poised to grow at a phenomenal rate. The key drivers of this growth are evaluated and discussed with pointers on how some of the luxury goods are being sold. The authors then try to draw lessons for marketers of luxury goods in India in light of the cultural difference in the Indian sub-continent. Keywords Retail Luxury Goods HNWI Luxury Brands INDIAN RETAIL MARKET India offers a dynamic retail landscape which is very attractive to the retail companies. It has the potential to become a strategic retail hub. Given the huge population of India a burgeoning middle class which is getting more and more affluent and a changing lifestyle it is a literal haven for retail companies. Retail spending in India has been growing at a double digit figure. It is estimated1 that Private Final Consumption Expenditure PFCE stands at Rs. 26 07 584 crores in 2007-2008 as compared to the previous year when it was Rs. 23 12 105 crores. This makes it a growth of in just a year. Table 1 below shows the growth of the Indian Retail market as well as the growth of the Organized Retail market. Table 2 shows the share of organized and unorganized retail market by various categories. The Indian Retail market stands at Rs. 13 30 000 crores of which the Organized Retail market is just Rs. 78 300 crores. This shows that organized retail is still in a nascent stage in India. The silver lining however is that this organized segment grew at in 2007 and is expected to maintain an even faster growth in the following 3 years. This would mean that organized retail is likely to touch Rs. 2 30 000 crores by 2010 at constant prices which