New Delhi, Nov 19 (IANS) The luxury brands segment, impacted by the
economic slowdown in 2013, is expected to bounce back by mid-2014 and
see a growth of nearly 17 percent, a report said here Tuesday.
"The impact of the economic slowdown in 2013 has impacted the luxury
market to a certain extent as well but by mid-2014 the market is
expected to revive and continue its growth trajectory and grow at nearly
17 percent in the year 2014," according to the report 'The changing
face of luxury in India' done by CII and IMRB.
India can play a potentially transformational role in the global luxury
market, said K.P. Krishnan, additional secretary in the finance
ministry.
Luxury assets have grown at a relatively slower pace at CAGR (compounded
annual growth rate) 9.4 percent in the last three years. Primary
contribution to the growth came from luxury car segment. Luxury real
estate segment is currently stagnant owing to weak investor sentiment.
But in the apparels and accessories segment, Indian designer-wear
segment remained relatively unimpacted by the recessionary trends, while
the personal care segment has emerged to be recession-proof.
The wine and spirits segment from consumption perspective is one of the
fastest growing with above 25 percent year-on-year growth.
With continuous change in technology and innovations, electronics and
gadgets have shown steady growth. Luxury watches and luxury cars have
clocked 20 percent and 15 percent growth, respectively, on year-on-year
basis.
Luxury hotels, travel, fine dining and spas have shown decent growth and
would grow at 10-15 percent for the next year years, says the report.
In 2007, the luxury market stood at $3.66 billion. The initial successes
for luxury brands were severely hit by the recession of 2008, but the
Indian market posted a relatively faster revival compared to other
markets, the study said.
"Since then, it has registered a healthy CAGR of 15.7 percent till 2012
with an estimated size at $7.58 billion," the report said.
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