India’s luxury market has long been a challenging landscape for many luxury brands to navigate, but according to Darshan Mehta, the CEO of Reliance Brands, it is a market ripe with potential and opportunity just waiting to be explored and capitalized on. Reliance Brands, as the leading distributor of high-end luxury brands in India, has successfully introduced international names like Burberry, Bottega Veneta, Armani, Zegna, Jimmy Choo, and Dolce & Gabbana to the discerning Indian consumer through a network of approximately 250 mono-brand boutiques and shop-in-shop partnerships.
Mehta believes that one of the primary hurdles for luxury brands in India is the prevailing mindset. Despite the presence of around 260,000 high-net-worth individuals in the country, constituting a market worth a staggering $1 trillion, luxury businesses have faced challenges such as bureaucratic red tape, high taxes, and an underdeveloped retail infrastructure. However, Mehta remains steadfast in his optimism for the future of luxury in India.
While China has historically been a stronghold for luxury brands, India’s affluent consumer base is rapidly expanding and becoming increasingly important. Mehta underscores the growing prominence of digital channels as the future of luxury business in India, with mobile commerce becoming more prevalent. He foresees that in the next three to five years, the digital economy will play a pivotal role in the dissemination of luxury brands, shifting the industry’s focus from physical stores to creating immersive and unique brand experiences.
Mehta also points out the positive developments in the regulatory environment, such as reduced VAT and import tariffs, which have made it easier for foreign companies to enter and operate in India. Recent policy changes allowing foreign companies to own a majority stake in joint ventures and subsidiaries, with certain stipulations related to local sourcing, further enhance the attractiveness of the Indian luxury market. Additionally, he highlights the underserved women’s market in India as a key growth opportunity, as women’s purchasing power and financial independence continue to rise.
In conclusion, Mehta’s outlook for luxury brands in India is characterized by optimism and a forward-thinking approach. Despite past obstacles, the future of luxury business in India appears promising and bright, with abundant opportunities awaiting brands that are willing to embrace the evolving dynamics of the market.
For further insights into the luxury market in India, you can explore the latest trends and developments at Business Standard, and discover more about Reliance Brands and their luxury brand portfolio at Reliance Brands.
