Forbes India recently held a webinar on the theme ‘Luxury Market in the post-Covid-19 world’ to discuss the impact of Covid-19 on Indian luxury. The views expressed indicated, the luxury market is likely to see an estimated 20 to 25 per cent hit or $70 billion to $80 billion.
Lamborghini India’s Sharad Agarwal said there could be a spurt in demand in the lower segment of cars, since people will not want to rely on public transport. However, he doesn’t expect to see such spending in the super luxury segment.
Moderated by Forbes India editor, Brian Carvalho, panelists included Manish Malhotra, Fashion Designer; Sharad Agarwal, Head, Lamborghini India; Vikas Purohit, CEO, Tata CLiQ; Manish Mehrotra, Chef, Indian Accent; Kapil Chopra, Founder and CEO, The Postcard Hotel; Daniel Andre Langer, CEO, Équité; and Abhay Gupta, CEO, Luxury Connect.
Langer said the luxury sector will rebound relatively faster than non-luxury sectors, similar to a trend seen after the financial crisis of 2008. Abhay Gupta said adoption of new standard operating procedures (SOPs) will be the key to success for the market. According to him, beauty and wellness will bounce back fastest. Designer Manish Malhotra stated consumption will become more conscious with the consumers as they will prefer to make smaller purchases and will be price conscious.
However, once a semblance of normal life resumes, HNIs and UNHIs are expected to splurge on luxury purchases. This is likely to give a boost to sales in the short term, and help clear inventory, albeit at a discount doled out by retailers to attract new customers. This opens up two large opportunities for the luxury sector—for luxury at the high end for the revenge spenders; and at the lower end for relatively cost-conscious shoppers who will be on the lookout for value for money and functionality in their purchases.