India has become a hotbed for luxury foreign products and the consumers want to stock their wardrobes with global luxury brands more than ever. The main reason for these luxury brands becoming popular is social media and the race to have a particular status in society. The luxury market is aware of that and tries to lure them in with their ad campaigns on social media and different sales and marketing strategies to target the Indian audience. Even lifestyle bloggers and YouTuber’s with their unboxing videos from international brands, have influenced the audience to possess or wear such brands.
It was a distant dream to wear products you would only see on runways and on Hollywood movies like the extravagant and uber chic outfits shown in the Devil Wears Prada or Sex and The City. But now it has become possible to get a hold of International brands at ease.
International brands have even revolutionised their products and curated pieces especially for the Indian market. One such example was when Louis Vuitton partnered with Rajeev Sethi to create a Diwali themed aesthetic in their Indian stores.
Our country has become fashion conscious and it’s not just women, men too want to own a suit from brands like Canali. McKinsey and Co, reported that the Indian consumer market will indeed grow to become the fifth largest consumer market globally.
Another reason for brands wanting to enter the Indian markets is due to the rise in spending power of the Indian consumer. A PwC report stated, “The spending power of Indian consumers is projected to be about $1 Trillion by 2021, due to the rise of emerging middle class people whose population is expected to grow to about 570 million by next year”.
But the question arises: Who are these major conglomerate companies making this dream a reality? Well, these are the conglomerates that have made it possible for international luxury brands to tap in the Indian markets:
1] Aditya Birla Fashion and Retail
Madura Fashion Ltd under the Aditya Birla Fashion and Retail Ltd group have brought in foreign brands like Louis Philippe, Van Heusen, Allen Solly, Van Heusen, Forever 21 and Peter England. The Aditya Birla Group in the financial year of 2018 crossed a revenue of Rs. 7,181 crore from its retail sector only. Last year, it brought in Ted Baker a British clothing company and American Eagle Outfitters into the Indian market.
2] Reliance Industries Ltd
Reliance bought a stake of 16.31% of Genesis Luxury in 2018, who have brought in foreign brands like Paul Smith, Armani and Jimmy Choo, Bottega Veneta, Giorgio Armani, Hugo Boss to name a few. It also has joint ventures with Burberry, Canali and Villeroy & Boch. On a standalone basis Reliance Ltd has got brands like Diesel, Superdry, Hamleys, Ermenegildo Zegna, Marks and Spencer, Paul & Shark, and many more into the Indian market. The Business Standard reported that Reliance Retail had a hike of 9 per cent growth rate in its top line in 2018, as compared to 1% in the year 2017.
3] Arvind Ltd
Arvind Ltd is one of the largest textile and apparel company in India. It partnered with GAP in 2015 and it was reported that it will open the apparel brand in Tier 2 and Tier 3 markets across the country. This conglomerate company has opened up global brands like Arrow, US Polo, Flying Machine, Elle, Cherokee, Nautica, Mossimo and Ed Hardy nationwide.
4] Bequest Group
The group has a plethora of luxury brands and have given the Indian consumers a wide range of options to choose from.They have brought in well known global retail brands like Tods, Brunello Cucinelli and Saint Laurent. It also brought in foreign perfume companies like Molton Brown and Creed. The group brought in Berluti, Paris the iconic shoe company to India in 2018.
The Indian consumer is indeed spending more and luxury products have made its home from Gucci and Armani. The countries fashion retail industry is going to cross Rs.6,898 Billion by the end of 2022. These prominent conglomerates mentioned above have brought in some well reputed brands and fashion labels into the country.
Let’s see which luxury brands step into the Indian market in 2019 with the help of these conglomerate companies.