India’s increasingly wealthy luxury goods is still difficult to do business

Taj Mahal in Mumbai luxury hotels, customers stroll in the 70-year-old shoe store in Old Joy, and decorated with hand-sequined sandals and soft leather shoes love does not address the “feet.”

And near the corner of a (Moschino) store brands, although the windows have arrived from Milan various fashionable clothing and food, the store remains empty.

Joy starts in the men’s 3,500 rupees (70 U.S. dollars), the slightest not cheap, but the shop selling the goods for many years. Store the third-generation successor Munna Javery explained that, Joy’s success lies in the necessary precursor customers and maintain relations with customers all year round.

For the international luxury goods retailers, this is only in India they face the many problems of the two.

Although the growing number of millionaires in India, but India’s luxury market compared to China, Brazil and other emerging markets is still inferior compared to many. Because in India, high-quality retail stores are limited, a luxury high import tariffs, foreign mergers and acquisitions restricted stores, the proliferation of fake and shoddy products, and administrative red tape is really annoying annoying.

According to Merrill Lynch and consultancy Capgemini (Merrill Lynch / Capgemini) survey data, in 2007 India had 123,000 millionaires, and the exceptionally rapid population growth. But in the “BRIC” has been the bottom, and the number of China’s rich is more than three times that figure.

While India accounted for the entire luxury goods retail market share is also the smallest, only 0.4%. Bain & Company (Bain & Co.) Report shows that in China the ratio is 2.7%.

India, Nepal really Mei Group (Murjani Group) owns Gloria Vanderbilt Jeans and Tommy Hilfiger international brands, and in the Indian market with Gucci, Calvin Klein and Jimmy Choo and other luxury brands marketing.

In India, the country opened to foreign retailers has been a controversial topic, mainly worried that lead to local unemployment. Until 2006, the exclusive brand retailers overseas acquisitions before they are allowed to store up to 51 percent of local shares, the international brands such as Gucci, Versace, Chanel and Burberry after in this one after another to enter the Indian market.

Although the Indian economy in the past three years has maintained a high growth rate of 9 percent, but the vast majority of other brands can only mouth-watering, but not their access. Louis Vuitton (Louis Vuitton) operating in India five years has only held four stores, compared with China, however, it has 25 stores.

米兰贝恩partner Claudia D’Arpizio said: “In emerging economies, a luxury only a very small part of target market share. And in India, In addition, the regulatory mechanism and retail infrastructure deficiencies is to the problems faced. ”

Luxury goods in India was only kings and the exclusive domain of wealthy businessmen. With the rise of affluent middle class, working women and the youth population, the increasingly broad market prospect. However, high taxes, high rentals store has been to restrict the further development of a luxury market.

New Delhi, “Khan Market” (Khan Market) despite the small size, the construction in a dilapidated state, the latest still being rated as the world’s highest retail rents, monthly rent per square foot up to 1,200 rupees (equivalent to 1889 yuan / sq m) , higher than in Amsterdam and Stockholm, luxury shopping malls.