Thursday, October 19, 2006

Destination India for luxury shopping

CNN-IBN reports that luxury brands are realizing the potential for selling to Indian customers. The number of potential households is estimated to be 1.6 million currently and along with increasing buying power and awareness of luxury brands, the Indian consumer is very concerned about the exclusive factor associated with buying high priced products.

While a few years ago, India’s rich spent their money outside the country, now they are shopping here in India. The Indian luxury market is still very small at $455 million, as compared to $2 billion in China but the Indian market is growing at a faster rate. Besides Delhi and Mumbai, the rich are located in 8-10 other cities in India and despite higher prices for luxury goods in India, consumers are lapping them up faster than even the Europeans.

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