With the growth potential in established markets shrinking by the year, luxury brands are increasingly looking at newer territories. Though India’s share of the global luxury market is negligible currently – about 2 percent – experts predict that the compound annual growth rate from 2006 to 2015 is likely to be around 25 percent.
The key drivers of growth include the rapid growth of high-net-worth individuals, rising global exposure through travel, an increase in per capita income, and an increased supply of global brands in India, according to Neelesh Hundekari, principal at AT Kearney.
The fastest growing areas this year for the sector are going to be China, likely to grow by 15 percent, and the rest of Asia-Pacific including India, likely to grow by 10 percent.
(Source: The Financial Express)