Indian Luxury Goods Market hit by Recession
During a slowdown, luxury is the first segment to take a hit and it is expected that luxury brands will take a dip of 10 to 15 per cent.Thi...
During a slowdown, luxury is the first segment to take a hit and it is expected that luxury brands will take a dip of 10 to 15 per cent.This is because of increasing job insecurity and decrease in variable pay and loss of value in stock options of the Indian premium class.The Indian luxury market is estimated to be worth $1 billion. According to an AT Kearney report, typical spenders in the luxury goods market are
- Industrialists or owners of small businesses (49 per cent)
- Professionals from the aspiring class -- the corporate sector (29 per cent),
- Specially IT/ BPO (8 per cent),
- Others like doctors, lawyers, media and finance professionals.
BS reports that the impact of recession is so large that huge sales are on offer from all luxury brands with brands like Gucci, Jimmy Choo, Bottega Venetta, Salvatore Ferragamo, Ermenegildo Zegna, Moschino and Charriol offering discounts of 30 to 50 per cent on Autumn/Winter 2008 collections.Even Gucci, the iconic Italian fashion and leather goods label, has deviated from its no-discounts policy for the first time and is offering 50 per cent off on selected bags and shoes. When will this end only time will tell
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