India Takes Centrestage In Luxury Giants' Growth Plans

From LVMH, Christian Dior and Canali to Tiffany, Cartier and Bulgari, luxury marketers are no longer ignoring the India opportunity.

- AJITA SHASHIDHAR

RIYA SHETH and her husband Mayank are on their way back to Dubai after attending a five-day wedding in Delhi and Jaipur. The investment banker couple stops at Mumbai before heading home. They decide to shop and, no, they don’t walk into Bombay Store or Fabindia. Riya’s birthday is round the corner and she buys a ₹3 lakh Bottega Veneta’s classic ‘Intreccio’ leather tote bag at the newly opened Jio World Plaza.

But why did she buy in India when she can get the best of luxury in Dubai? “It is cheaper to buy luxury in India. I have started shopping more in India over past three-four years,” she says. Managers of luxury stores at the Jio World Plaza say pricing of global luxury products in India is now on a par with most mature markets. In fact, prices in Singapore and Middle East are 7-10% higher than in India. “India is second cheapest for luxury after Europe, where these products are made,” says a sales executive at the Louis Vuitton store in Jio World Plaza.

This is surprising as India imposes 30-50% import duty on luxury products and 28% goods and services tax. Wasn’t that the reason buying a luxury brand in India was prohibitive and Indians preferred shopping for an LV bag, a Zegna suit or a Rolex watch abroad? Not anymore. “We can’t afford differential pricing any longer,” says Georges Kern, CEO, Breitling.