BANGALORE, March 21, 2014 /PRNewswire/ --
Single-store Foreign Brands Drop Anchor in India
In recent years, India's rapid economic growth has paved the way for a flourishing middle class with rising disposable income that is craving for foreign luxury goods. Moreover, India's growth story is expected to continue over the next few years, far outpacing that of most major economies in Asia. Sensing the huge growth opportunity, many foreign luxury retailers are expanding their footprint in India; and giving them a warm welcome, the Government of India has ushered the entry of global brands by allowing 100% FDI in single-brand retail since 2012. It is no surprise that luxury watches, leather goods, jewelry, and branded accessories are adding to the glitter and occupying center space in Indian malls. See our coverage of the Indian luxury goods market by visiting - http://wallstanalyst.com/sense-x/market-mantra
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India Emerging as the Global Manufacturing Hub for Luxury Watches
Before the Indian government gave approval to foreign luxury brands to open fully owned stores in India in February 2013, these players were selling their products in the country through large e-commerce sites and retail chains with presence in high-end malls in major metros. They were also following the franchise model to retail their products to a niche customer base. However, with the change in government regulations, many luxury brands are looking to set up their flagship stores in malls with high footfall and good brand exposure. They are also looking to comply with the 30% local sourcing by setting up their manufacturing units in the country. With the abundant skilled labor force available in the country, many of the manufacturing units of luxury brands are emerging as the global manufacturing hub for high-end luxury watches. This report can be accessed by following the link below:
Booming Indian Watches Market
According to a 2012 study by the Associated Chambers of Commerce and Industry of India, India's watch market was worth Rs. 5,000 crore in 2012, out of which organized retail accounted for 40%. The low-to-mid watches segment is crowded with many players and offerings, and the luxury segment is unaffordable to most middle class consumers. Hence, the huge gap between these two segments which some foreign luxury watch makers are looking to bridge. This category of watches has a share of about 40% in the organized market, which is estimated at Rs. 2,500 crore.
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