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BW Businessworld

Not Just Snob Value

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The luxury market will continue to grow in 2014 at an average of 15-20 per cent across categories. If 2013 is any indication, the global reduction in spends on luxury has not made any significant dent in the Indian market. If brands have grown globally in single digits, in India, the same have experienced double-digit growth. This is a very healthy indicator for brands in India and I am optimistic of these growth patterns continuing into the next year as well.
The luxury consumer in India has indeed matured. There has been a gradual but visible shift towards spending on products that are high on quality and heritage as against badge value and logos. I see this trend maturing with more people appreciating luxury for its value and aesthetic. 
We will also witness a rise in aspirational consumers as more people come into the fold of luxury through greater access to brands as they move into cities outside the main metros of Delhi and Mumbai. Luxury is fast venturing into newer territories. For instance, Kolkata will soon witness the launch of the city’s first luxury mall, Quest. Many new malls are also scheduled to open by end-2014.
In 2014, luxury will further expand to newer categories, such as personal care and luxury homes. Developers are focusing on luxury residences in a big way. In fact, many new projects in this space are on the anvil. Alongside luxury homes, the market for luxury home décor is also on the rise. 
And so is case with the personal care industry. People are now spending on luxury products in the cosmetics and personal hygiene space. Brands like Crabtree & Evelyn are rapidly expanding to cities such as Pune and Kolkata. Luxury wines and spirits are also an expanding category. It is interesting to note that women are indulging in this category as much as men.
The accessories market will grow laterally as men’s accessories find more takers. Men are becoming increasingly fashion conscious. The mantra clearly is ‘if you have it, flaunt it’.   
The author is MD, Genesis Luxury
(This story was published in BW | Businessworld Issue Dated 13-01-2014)