The Indian luxury market is expected to more than double its current size over the next five years.
The growth of India as a luxury products market and its potential is obvious and there is a positive sentiment towards global brands, says research house Bharat Book Bureau.
Although international brands currently face many challenges, most view their venture into India as a long term investment that will eventually yield massive returns.
While most of the mature markets are undergoing a slowdown in luxury sales, India is being heralded as holding strong future potential.
Liberalisation of the Indian economy has resulted in high economic growth rates and allowed people to broaden their aspirations.
The industrial and IT revolution has created an entirely new set of wealthy global Indians. The increasingly open economy has created new business opportunities and promoted entrepreneurship that resulted in the emergence of an exceedingly successful first generation businessmen, said the bureau.
The number of self-made millionaires is also increasing.
The preferences of Indian consumers of luxury goods have evolved over time. Earlier, luxury was essentially intertwined with foreign trips and luxury goods were generally imported from Europe and the US.
But as luxury brands entered India and the number of new rich increased the desire to display wealth, success and social status has increased. Luxury has become all about flaunting the hard earned wealth and people became extremely brand conscious.