MAM
Report on Shemaroo

Luxury goods market in India on a lower growth curve

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/mam-images/2014/09/20/deeeeeeeeeeeeeeeee.jpg?itok=lL7cIh8G

MUMBAI: As the global economy recovers, the luxury industry is growing accordingly. Not unexpectedly, growth is disproportionately focused on the Asia Pacific region.

In 2012, India had the fastest growing luxury markets in the region. The country grew much faster than China, but lost steam due a lack of sustenance of the growth, which once made the country an attractive market. Today, the Indian luxury goods market appears to be on a lower growth trajectory as pointed out in the Deloitte Touche Tohmatsu (DTTL) first annual report on ‘Global Powers of Luxury Goods’.

“The entire luxury goods market in India has seen a significant dip in the growth rate and is likely to see a couple of more turbulent years. However, the long term outlook remains positive and India’s luxury market is expected to rise with a strong performance. To supplement this long term growth trajectory, holistic implementation of new reforms and initiatives by stakeholders and regulators would only facilitate the vision” said Deloitte senior director Gaurav Gupta.

The report says that the very rapid growth of recent years have created a bottle neck leading to inflation this has caused the central bank to tighten its monetary policy to control inflation and stabilise the currency; hence, further slowing the booming market. From the regulatory side, there was not much of a focus to implement reforms that could boost productivity, unleash, more investment and induce a faster growth rate in the sector.

‘Global Powers of Luxury Goods’ highlight the fact that along with Indian markets, many emerging markets like China, Brazil and Russia have seen deceleration of growth in the past year. This follows a period of rapid growth that was driven by several factors. Going forward, the emerging world is likely to have a year or two of disappointing growth while imbalances are unwound. However the long term view remains positive.

In the last five years the expanding global middle class in the emerging markets has supported growth in the luxury sector and is continuing to grow through 2018. According to Euromonitor the emerging markets like Asia Pacific, Latin America, Middle East and Africa combined together accounted to 9 per cent of the luxury market in 2008 these figures spiked to 19 per cent in 2013 and is expected to leap up to 25 per cent in 2025.

The developed economies like US and Europe benefits from the emerging markets. Over the 2012 to 2017 Euromonitor projects China to lead the tourist expenditure growth followed by India and the other emerging Asian countries. The appetite for American and European brands in the underpenetrated markets is strong and growing many luxury companies to expand its international presence hence creating opportunities in emerging markets like India.

The world’s 75 largest luxury goods company generates total goods sales of $171.8 billion. Three of the top ten companies are conglomerates.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/15/tute.jpg?itok=OYmZz8kD
Marcom firm Tute Consult hires Shweta Mehrotra as Strategy Head

New Delhi: Integrated marcom and PR agency Tute Consult on Tuesday strengthened its leadership team with the appointment of Shweta Mehrotra as the strategy head. Mehrotra will be working closely with Tute Consult founder Komal Lath and oversee strategies and operations across the board. Her...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/15/photogrid_plus_1623744201157.jpg?itok=vlh4rTMu
NYUMI launches five new products for urban Indian women

New Delhi: Direct to consumer start-up, Nyumi has entered the fast-growing nutraceutical space with the launch of five critical products specifically formulated for the urban Indian women. The company addresses the specific issues of nutrient deficiencies in Indian women through products that blend...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/15/photogrid_plus_1623743455265.jpg?itok=tFvo92I6
Wondrlab ropes in Bilal Ansari as lead-data

New Delhi: Wondrlab strengthened its senior leadership team on Tuesday with the appointment of Bilal Ansari as lead-data. He will report to Wondrlab, co-founder and managing partner, content platform, Rakesh Hinduja. Ansari comes with expertise in data analysis for business and brand solutions –...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/15/manforce.jpg?itok=dngpU5Yw
Manforce condoms rolls out a new ad ahead of Father's Day

Mumbai: Manforce condoms has released a new ad ahead of Fathers’ Day in continuation of its last year's campaign ‘Better Endings’ on unplanned fatherhood. The ad points to the increased time spent behind closed doors by couples getting caught up in increased moments of intimate indulgence, leading...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/14/photogrid_plus_1623667654894.jpg?itok=T0G4DGgz
The Minimalist launches Covid Care Program for its employees

Mumbai: Mumbai based creative solutions group, The Minimalist has announced a Covid Vaccine Cover program for its employees which will cover the entire team of 140+ people, across offices. The program will cover vaccine expenses for the employees and include their spouse, parents, and upto two kids...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/14/photogrid_plus_1623662118916.jpg?itok=rliiEYyr
Havas Media Group India announces key elevations for senior management

Mumbai: Havas Media Group India on Monday announced several new elevations and promotions, as it gears up to accelerate its growth across key markets in the country.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/14/photogrid_plus_1623661099403.jpg?itok=ngVtSZeq
TCM Sports Management appoints Sudip Roy as EVP – New Business

New Delhi: TCM Sports Management, a full service sports marketing and management company has appointed Sudip Roy as executive vice president – New Business. Roy will be responsible for developing revenue strategies for the new business verticals -Digital platforms, Branded content opportunities in...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/14/photogrid_plus_1623658736769.jpg?itok=vjgI_Yg1
L&K Saatchi & Saatchi ropes in Kanishka Vashisht as executive creative director

New Delhi: L&K Saatchi & Saatchi strengthened its creative team on Monday with the appointment of Kanishka Vashisht as the executive creative director. Vashisht will be based out of New Delhi and will manage all brands for the region. He will report to L&K Saatchi & Saatchi, Joint...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/14/photogrid_plus_1623657669327.jpg?itok=8kdllb1C
Aon brand replaces Anviti Insurance Brokers in India

Mumbai: Global professional services firm providing a broad range of risk, retirement, and health solutions, Aon plc on Monday announced that it will operate its insurance and reinsurance broking business under the Aon brand name in India, effective immediately. Aon acquired a 49 percent stake in...

MAM Marketing MAM

Sign up for our Newsletter

subscribe for latest stories

* indicates required