India’s luxe market is growing at 6.6 per cent. Hermes’ revenue from operations in India rose 11 per cent from the previous year. Net profit increased 55 per cent. Louis Vuitton’s net profit in India rose 24.5 per cent in fiscal 2019. However Christian Dior which deals in leather bags, fashion apparel and accessories reported a net loss for the fiscal year. Christian Dior has four stores in New Delhi and Mumbai, while Hermes has just two in the same cities.
Luxury opportunity clearly looms large and attractive in India. However, considering the cultural diversity, geographical divide, the challenging environment and other technicalities, a luxury brand would do well to take note of the key performance drivers currently prevalent in India. The Indian luxury industry is seeing lucrative avenues. With the millennials and Gen Z seeking authenticity over brand name, the true mix and match culture is at its peak. With luxury brands trading down and high street fashion brands trading up, the trend is an amalgamation of the two. From cars to watches to fashion and accessories, the new luxury consumer is preferring to buy a pre-owned highly positioned luxury product over a new product from the lower level of a luxury brand.